Akwel (AKW) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €528.8M, with year-over-year declines ranging from 0.83% to 3.1%, reflecting a challenging automotive market and regional disparities.

• Net income reached €20.2M, with operating margin at 4.6% and net margin at 3.8%, both down from the prior year due to inflation and higher wage costs, especially in Turkey and Mexico.

• Value added increased by 6.8% to €215.7M, supported by easing inflation on raw materials and lower energy and transport costs.

• Net cash position improved to €106M, with equity at €608.9M and all banking covenants respected.

• The company is adapting to market shifts with a focus on electrification, RSE initiatives, and operational agility.

Financial highlights

• H1 2024 revenue: €528.8M, down between 0.83% and 3.1% year-over-year; value added: €215.7M (+6.8%).

• EBITDA: €49.2M, nearly stable or down 1.3% year-over-year.

• Operating income: €28.9M (down from €30.2M); current operating income: €24.4M (down 21.6%).

• Net income: €20.2M (up from €19.1M in H1 2023); EPS: €0.76 (down from €0.83).

• Capital expenditure: €30.8M (up from €23.2M); net cash: €106M.

Outlook and guidance

• Full-year revenue is expected to decline slightly, with market uncertainties and a planned reduction in SCR activity ahead of a 2025 production stop (excluding spare parts).

• Market conditions remain uncertain due to regulatory changes, global production softness, and OEM overstock.

• Investments have enhanced agility to adapt to shifts between electric, hybrid, and combustion powertrains.