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Vitesco Technologies Group (VTS) investor relations material
Vitesco Technologies Group Q2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 2024 sales declined 17% year-over-year to €2,025 million, mainly due to volatile markets and planned contract manufacturing reduction.
Adjusted EBIT margin improved to 4% (up from 2.9% in Q2 2023), driven by positive mix, resilient Core ICE results, and less dilutive business.
Electrification sales showed early recovery, with order intake exceeding €3 billion and €1.3 billion from electrification; new product launches in China.
Free cash flow was negative at -€388 million, mainly due to payment term changes, spin-off funding repayment, and higher investments.
The company remains on track for full-year targets, expecting further improvement in the next two quarters.
Financial highlights
Group sales slightly above €2 billion in Q2, down 17% year-over-year, with organic sales down 11.5% excluding currency and consolidation effects.
Adjusted EBIT margin increased to 4% at group level and 4.5% for core technologies.
CapEx ratio increased to 5.9% of sales, reflecting investments in electrification launches.
Equity ratio remained stable at about 39%.
Net debt position of €189 million at end of June, with net debt to adjusted EBITDA at 0.2.
Outlook and guidance
Full-year 2024 group sales forecast at €8.1 billion ± €150 million, with adjusted EBIT margin expected at 4% ± 0.2%.
Free cash flow for 2024 expected around -€400 million, with positive cash flow anticipated in the second half.
CapEx ratio for the year projected at about 7% of sales, focused on electrification investments.
Guidance does not include effects from integration into Schaeffler.
Global vehicle production for 2024 expected to be flat to slightly positive, with regional variations and high uncertainty.
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