CIE Automotive (CIE) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 results with 2.5% sales growth at constant FX, outperforming the global market, and consistent margin expansion across most geographies except China.

• EBITDA margin reached 18.6% in Q2 2024, with EUR 190 million EBITDA (+3% YoY), EUR 142 million EBIT (+5% YoY), and net income for H1 up 3% to EUR 184 million.

• Operating cash flow for H1 2024 was nearly EUR 250 million, up over 5% YoY, with a 66% EBITDA-to-cash conversion rate in Q2.

• Debt ratio reduced to 1.45x net financial debt/EBITDA, supporting future investment and shareholder returns.

• 2025 strategic commitments reaffirmed, with over 75% of operational and financial goals already achieved.

Financial highlights

• Q2 2024 sales growth of 2.5% at constant FX, H1 growth of 3.1%, with structural outperformance in all regions except China.

• EBITDA margin improved to 18.6% in Q2, with all geographies maintaining 18-20% EBITDA margins.

• EBIT margin reached a record 14.0% for H1 2024; EBIT conversion rate of 35% for H1.

• Net income for H1 reached EUR 184 million, up 3% YoY; like-for-like growth nearly 10% excluding prior year one-offs.

• Operating cash flow for H1 at EUR 250 million, up 5% YoY; Q2 cash generation exceeded EUR 120 million.

Outlook and guidance

• 2024 global market expected to contract by 2% YoY, with Q2 down 0.5% and H1 down 0.2%.

• 2025 guidance reaffirmed, including EBITDA margin over 19%, CAPEX of EUR 1bn over five years, and annual operating cash generation of EUR 500 million starting 2025.

• CapEx guidance remains at 5% of sales, with a slight increase in 2024 due to growth investments, especially in Mexico.

• Financial expenses expected to remain stable in H2 2024, with a decrease anticipated in 2025.

• Bloomberg consensus for EBITDA growth seen as reasonable and aligned with internal expectations.