Akwel (AKW) H2 2024 earnings summary

Executive summary

• Revenue declined 7.3% year-over-year to €989.0M, with sharper drops in France (-19.1%), reflecting a market downturn and accelerated drop in H2 2024.

• Net income fell 32.3% to €24.2M, with a net margin of 2.4% versus 3.3% in 2023.

• EBITDA decreased 14.4% to €87.2M; current operating margin dropped to 3.9% from 5.7%.

• Free cash flow reached €55.4M; net cash position improved to €133.4M from €105M.

• Operational adaptation included cost adjustments, maintained investments in future products and technologies, and a proposed dividend of €0.30 per share.

Financial highlights

• Annual revenue: €989.0M, down 7.3% from €1,066.4M in 2023.

• Operating income: €39.7M, down 19.4% year-over-year; current operating income: €38.4M (-37.1%).

• Net income: €24.2M, down 32.3% year-over-year; net margin at 2.4%.

• EBITDA: €87.2M, down 14.4% year-over-year.

• Cash flow from operations: €95.7M (+49.7% year-over-year); free cash flow: €55.4M.

Outlook and guidance

• 2025 revenue expected to decline at a similar rate as 2024 due to global market contraction and EV production delays.

• Market remains volatile with continued global contraction and increased competition from Chinese manufacturers.

• Delays in electric vehicle launches and lower-than-expected volumes anticipated.

• Focus on cost adaptation, technical capability strengthening, and organizational agility amid limited market visibility.

• Balanced order intake between thermal and electrified vehicles; strengthened technical capabilities.