Brembo (BRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached €957.0 million, down 4.7% year-over-year, with EBITDA margin at 16.0% and net result at €51.1 million, a 31.9% decline from Q1 2024, amid challenging automotive market conditions and declining demand.

• Like-for-like (excluding Öhlins), sales declined 8.6% and EBITDA dropped 18.0% year-over-year.

• The Öhlins acquisition was completed in January 2025 for €362 million, contributing €38.6 million in sales, €3.4 million in net income, and a 40.7% increase in the racing segment.

• Management remains confident in long-term strategy, emphasizing ongoing investment and innovation.

Financial highlights

• Q1 2025 EBITDA was €153.3 million (16.0% margin), down 13.3% year-over-year; EBIT fell 26.0% to €83.5 million.

• Net financial debt rose to €778.6 million, up 116.1% from year-end 2024, mainly due to the Öhlins acquisition and negative operating cash flow.

• Net investments for Q1 were €102.7 million (10.3% of revenue), focused on operations and geographic expansion.

• Net financial charges increased to €9.3 million, mainly due to higher debt costs and currency losses.

• Employees at period end increased 5.8% to 14,885.

Outlook and guidance

• 2025 revenue expected in line with 2024, including Öhlins, with EBITDA margin forecasted above 16% and capex planned at ~€400 million.

• Net debt projected to remain stable at approximately €780 million.