Aumovio (AMV0) Q4 2025 earnings summary

Executive summary

• Achieved initial 2025 guidance with €18.5bn adjusted sales, down 5% year-over-year, despite market challenges and a successful spin-off establishing independence and focus.

• Adjusted EBIT rose 45% to €717mn, with margin improving to 3.9%, driven by cost discipline, improved project mix, and transformation efforts.

• Positive adjusted free cash flow of €159mn, despite €491mn in restructuring and spin-off costs; normalized free cash flow reached €650mn.

• Transformation initiatives included portfolio management, cost reduction, footprint consolidation, and significant headcount reductions since 2023.

• Order intake rose to €20.4bn, with a focus on quality, margin profile, and a well-diversified regional mix.

Financial highlights

• Adjusted EBIT increased from €493mn to €770mn year-over-year, supported by higher gross margin and cost discipline.

• Adjusted EBITDA amounted to €1.67bn; liquidity at year-end was €1.7bn, with an undrawn €2.5bn credit facility.

• Net income after minorities was -€655mn, down €366mn year-over-year, due to higher interest, tax, restructuring, and spin-off expenses.

• Gross margin improved to 19.9%, supported by value-based pricing, material cost reductions, and operational excellence.

• Capex discipline maintained, with Capex/Sales at 4.1%.

Outlook and guidance

• 2026 is expected to be a transition year, with adjusted sales guidance of €17–18.5bn, EBIT margin of 3.5–5%, and normalized free cash flow of €500–800mn.

• CapEx to remain below 5% of sales; further cost savings, footprint optimization, and R&D efficiency targeted.

• Net income and EPS expected to improve significantly in 2026, assuming lower special items and normalized tax rate.

• All segments forecast moderately lower sales in 2026 due to FX and market conditions, but profitability to be supported by ongoing cost measures.

• Aurora program production to start in 2027, with meaningful sales contribution from 2028 onward.