- Despite growing commercial activity, the revenue in the second half of the year was impacted by the deferral of some orders to 2025 related to deteriorating macroeconomic conditions and by the more gradual deployment of certain key accounts in Europe and North America.
- These deferrals have led Arcure to revise its sales forecast for 2024. At this stage, sales for 2024 is expected to come in at around €19 milllion, ranging from €18.2 million (sales achieved in 2023) to €20 million (guidance previously communicated).
- For fiscal year 2024, Arcure is nevertheless preserving its profitability through cost-control measures adapted to the wait-and-see market situation, while continuing its proactive sales policy.
- Current delays are considered exogenous and do not call into question the analysis that the penetration rate of AI in industrial vehicles is set to grow significantly between now and the end of the decade.
- Furthermore, partnership development activity with engine manufacturers and other technology players is at an all-time high, with new OEM partnerships expected in 2025.
Arcure, a specialist in embedded artificial intelligence for industrial vehicle safety and productivity, announces an adjustment of its annual growth target for 2024.
Following a first semester in line with objectives, second-half sales are impacted by the deferrals of investments by some key industrial accounts, who are spreading over time their deployment of Blaxtair® solutions. In this context, Arcure expects sales for 2024 to be up compared to 2023, but below the target announced in 2021 (€20 million), with an expected average value of €19 million. As December is traditionally the month in which the most orders are placed and as the orders must be delivered to be counted as revenue, the precise annual revenue will only be known at the end of the financial year.
Nevertheless, the Group confirms the growth of its commercial activity with industrial clients and the increase in demand from potential technology partners and vehicle manufacturers. Despite the current slowdown in industrial investment, market momentum remains strong.
For fiscal year 2024, Arcure is nevertheless preserving its profitability through cost-control measures adapted to the wait-and-see market situation, while continuing its proactive sales policy.
Franck GAYRAUD, Chairman and co-founder of Arcure, stated: ‘'The year 2024 was marked by a high level of commercial activity with manufacturers and OEMs. This is evidenced by the number of discussions and quotations with major global industrial groups and manufacturers of forklift trucks and construction equipment for the integration of Blaxtair® as original equipment. Nevertheless, we observe a certain wait-and-see attitude on the part of end-users industrial clients in Europe over the past few weeks, with some orders postponed because of the macroeconomic context. However, our fundamental analysis of the market remains unchanged, and we believe that with the complete Blaxtair® 5 range, we have the best offer to return to our usual growth path. Our diversified geographical footprint also gives us a great opportunity to take advantage of the economic upturn wherever it occurs first.''
AFTERMARKET: A STRENGHTENED COMMITMENT TO COMMERCIAL GROWTH
The postponement of orders in the second half of the year comes in the context of slowing industrial investment in Europe and North America, due to economic, political and geopolitical uncertainties in these regions. In this cautious environment, some of the world's major key accounts using forklift trucks are spreading their commitments, by postponing orders or placing them more gradually than previously announced.
In the construction vehicle segment, an increase in deployments within major infrastructure projects is noted.
For 2025, in this demanding environment, Arcure is stepping up its sales and marketing efforts, particularly in the United States, to capitalize on the possible upturn in American investment. In addition, the Group is expanding its commercial offering to cover the full spectrum of needs expressed by manufacturers and pursue its growth trajectory in the aftermarket.
OEM AND TECHNOLOGY PARTNERS: DECISIONS EXPECTED IN 2025
The second half of the year saw an acceleration in demand from machine manufacturers, a minor part of the market until now. Arcure confirms that it is currently in direct discussions with world leaders producing a total of around 400,000 vehicles per year, in the tendering or pre-tendering phases.
To date, the part of major manufacturers who have initiated a program to equip themselves with perception technologies such as those proposed by Arcure represents an annual production of over 800,000 vehicles. To address these market segments, Arcure has stepped up its sales activities, with the recruitment of a new team dedicated to developing OEM partnerships. Exchanges are also growing with global technology players, around projects aiming at integrating Blaxtair technologies in their product range.
With new decisions expected in 2025, Arcure's long-term growth will be based on penetrating these markets on a very large scale. As previously communicated, the global penetration rate of AI technologies for safety and productivity remains around 0.5% today, and could reach 10 to 25% by the end of the decade. Overall, the annual volume of new machines to be equipped is estimated at 1.7 million per year (excluding China and India) [1].
The global forklift market is expected to grow by around 65% between 2023 and 2030[2].
Thanks to its technological expertise, knowledge of needs and international scope, Arcure is ideally positioned to respond to this change in market scale.
About Arcure
Founded in 2009, Arcure is an international group, specialized in artificial intelligence applied to perception technology for the industry, which develops and markets solutions to enhance the autonomy and safety of industrial machines and robots.
In particular, Arcure has developed Blaxtair®, a state-of-the-art intelligent pedestrian detection solution, improving safety around commercial vehicles in many contexts, including the most difficult environments. Already sold more than 22,000 units in more than 50 countries, Blaxtair® is used by the world's leading industrial companies and is gradually being adopted by machine manufacturers.
Arcure is headquartered in the Paris area, R&D offices and operational units in France, has a subsidiary in the United States and has sales offices in Germany, United Kingdom and Spain.
Arcure is listed on Euronext Growth (ISIN: FR0013398997 - Ticker: ALCUR). The group recorded an annual €18.2 million revenue in 2023 (84% of which was generated outside France), growing 40% compared to 2022.
More information at www.blaxtair.com
Disclaimer
This press release may contain information on Arcure's objectives, prospects and areas of development as well as forward-looking statements. Although these indications and statements are based on data, assumptions and estimates that Arcure believes to be reasonable as of the date of this press release, Arcure can give no assurance that the objectives described will be achieved or that projections will be realized or that Arcure's assumptions will prove correct. These indications and projections are subject to change or modification due to uncertainties related in particular to the vagaries of any activity and to changes in the economic, financial, competitive and regulatory environment. Arcure undertakes no obligation to update or revise any forward-looking objectives, forecasts, outlook or information contained in this press release, except as required by applicable law or regulation.
CONTACTS
| INVESTORS RELATIONS Marc Delaunay investisseurs@arcure.net | MEDIA RELATIONS Marc Delaunay marc.delaunay@blaxtair.com |
[1] Statista and manufacturers data.
[2] Research and Markets, October 2024, https://tinyurl.com/33ezht4n