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

Executive summary

• Achieved sequential EBITDA growth in Q4 2024 despite challenging European market conditions and intensified pricing pressure, with high free cash flow and significant deleveraging.

• Strengthened competitiveness by expanding into the U.S. and aerospace industry, completing the acquisition of Universal Stainless & Alloy Products in January 2025.

• Leadership Journey cost initiatives exceeded 2024 targets, delivering EUR 49 million in Q4 and EUR 95 million in 2024, supporting cost leadership in Europe and Brazil.

• ESG achievements recognized with top industry ratings from MSCI and Sustainalytics, and inclusion in TIME's list of best companies.

• Net income rose to EUR 231 million in 2024 from EUR 203 million in 2023, with EPS at EUR 3.20.

Financial highlights

• Q4 2024 Adjusted EBITDA was EUR 116 million, up 17% sequentially and more than doubled year-over-year, with EBITDA per ton of EUR 287.

• Net debt declined by EUR 101 million to EUR 544 million in Q4, with a net debt to EBITDA ratio of 1.5x.

• Q4 2024 sales were EUR 1,471 million, down 1% sequentially and 5% year-over-year; shipments reached 505kt.

• Free cash flow reached EUR 146 million in Q4 2024, with full-year free cash flow before dividend at EUR 125 million.

• Dividend remains unchanged, with a planned distribution of EUR 2 per share for 2025.

Outlook and guidance

• Q1 2025 expected to see higher shipments in Europe but lower Adjusted EBITDA due to continued pricing pressure and negative inventory valuation.

• Universal acquisition to contribute EUR 9–11 million EBITDA in Q1, partially offsetting expected decrease.

• Net financial debt projected to rise significantly in Q1 2025 due to Universal Stainless & Alloy Products consolidation.

• CapEx for 2025 budgeted at EUR 200 million, focused on maintenance, productivity, and alloys growth.

• Guidance updates will depend on raw material price developments and market conditions.