Aurubis (NDA) Q4 2024 earnings summary

Executive summary

• Achieved robust results in FY 2023/24, with operating EBT of €413 million, up 19% year-over-year, and net cash flow of €537 million, despite volatile markets and higher costs from strategic project ramp-ups.

• Five out of eleven strategic projects have moved into ramp-up or operations, with more than 50% of the €1.7 billion investment program completed.

• Enhanced safety and security measures implemented following prior-year criminal activities, with significant investment in plant security and employee protection.

• Internal investigation into criminal activities completed; findings handed to authorities, with legal proceedings ongoing.

• Strategy focused on sustainable growth, digitalization, and industry leadership in environmental standards.

Financial highlights

• Operating EBT reached €413 million, a 19% increase year-over-year; operating EBIT up 20% to €411 million; consolidated net income rose 25% to €335 million.

• Net cash flow was €537 million, supporting growth investments; free cash flow at -€280 million after investments.

• Gross profit stood at €1.7 billion, significantly above last year due to higher metal prices and one-off effects.

• Dividend proposal of €1.50 per share, up €0.10 from last year, with a payout ratio of 20% of operating earnings.

• Capital expenditure peaked at €859 million, reflecting major growth projects.

Outlook and guidance

• Operating EBT for 2024/25 expected between €300–400 million; ROCE between 7% and 11%.

• Multimetal Recycling segment EBT forecasted at €50–110 million; Custom Smelting & Products at €310–370 million.

• Anticipated ramp-up costs of €50 million for strategic projects in 2024/25, mainly related to Richmond.

• Maintenance shutdowns at Pirdop and Lünen expected to negatively impact EBT by €51 million.

• Ambition to strengthen free cash flow profile mid-term, with EBITDA ramping up by €260 million p.a. over 3–4 years.