Cargotec as an investment

Cargotec is carrying out a structure change where there would be three separate businesses emerging from the current Cargotec group. Kalmar is planned to be demerged to form a separate listed company as from 1 July 2024, and Cargotec is looking for a solution for MacGregor during 2024. If the planned actions are completed, current Cargotec would comprise of Hiab as a standalone business.

Cargotec announced in conjunction with its January–March 2024 interim report that due to the high certainty of standalone listing of its business area Kalmar by means of a partial demerger, the combined financial targets set in November 2022 for Kalmar and Hiab are no longer valid. Therefore, separate long term targets have been set for Hiab and Kalmar. 

Cargotec’s Board of Directors has set the following financial targets for Hiab to measure success by 2028:

• Annual sales growth over seven percent over the cycle
• Comparable operating profit 18 percent (1
• Return on capital employed over 25 percent (2

1) as business area of Cargotec
2) as business area of Cargotec, defined as (Operating profit / Operative capital employed)

In addition to the Hiab-specific long term targets, Cargotec’s climate target to reduce greenhouse gas emissions in all three emission scopes by at least 50 percent by 2030 compared to a 2019 baseline remains valid. The target is validated by the Science Based Targets initiative (SBTi). In its planned standalone future after the solution for MacGregor has been found, Cargotec (future Hiab) is planning to publish a new climate target and applying its validation from SBTi.

Cargotec also aims for a growing dividend of 30–50 percent of EPS and to keep gearing below 50 percent.

Kalmar’s new long term targets were published on 22 May 2024 when the Finnish Financial Supervisory Authority approved the prospectus concerning the proposed partial demerger of Cargotec and listing of Kalmar’s class B shares. More information is available here.