Aperam S.A. (APAM) Q4 2024 (Q&A) earnings summary

Executive summary

• Quarterly and annual results showed increased earnings and profitability despite challenging market conditions, supported by a differentiated value chain, strong performance in Brazil, and the Universal Stainless & Alloy Products acquisition.

• Leadership Journey® Phase 5 delivered EUR 95 million gains in 2024 and targets over EUR 200 million by 2026, with EUR 75 million expected in 2025.

• Universal Stainless & Alloy Products acquisition completed in January 2025, expanding US and aerospace presence and to be fully consolidated from 2025.

• Aperam received top ESG ratings from MSCI and Sustainalytics, reinforcing its sustainability leadership.

• Health and safety improved, with LTI rate at 1.8x in 2024 versus 2.3x in 2023.

Financial highlights

• Q4 2024 Adjusted EBITDA was EUR 116 million, up from EUR 99 million in Q3 and EUR 55 million in Q4 2023; full-year Adjusted EBITDA rose 17.1% to EUR 356 million.

• Q4 2024 sales were EUR 1,471 million, down 1% sequentially and 5% year-over-year; full-year sales declined 5.1% to EUR 6,255 million.

• Free cash flow before dividend was EUR 125 million in 2024, with net financial debt at EUR 544 million at year-end.

• Basic EPS was EUR 0.17 in Q4, with clean EPS at EUR 0.33; full-year EPS reached EUR 3.20.

• Total cash returns to shareholders in 2024 were EUR 145 million, all as dividends.

Outlook and guidance

• Q1 2025 EBITDA expected to be lower than Q4 2024, with shipments rising but price pressure and seasonality impacting results.

• Universal Stainless consolidation from January 2025 will increase financial debt and working capital.

• Plan to achieve a EUR 300 million EBITDA uplift by end of 2025 remains unchanged.

• FY 2025 base dividend maintained at EUR 2.00/share (~EUR 145 million); group capex guidance at ~EUR 200 million.

• Outlook depends on stability of metal and product prices at current levels.