CIE Automotive (CIE) Q3 2024 earnings summary

Executive summary

• Achieved record financial results for all key metrics in the first nine months of 2024, with sustained growth in revenue, EBITDA, EBIT, and net income compared to the same period last year.

• Q3 saw uneven market trends: strong growth in Mexico, India, and Brazil, while Europe, the U.S., and China underperformed or matched the average.

• Maintained strong operating margins and high levels of cash generation, supported by strict cash management and a robust liquidity reserve.

• All geographic regions contributed positively to performance, with notable profitability in Brazil and China.

• Europe experienced a 7% production drop in Q3, with electric vehicle (EV) penetration falling to 21% from 24% in 2023.

Financial highlights

• Turnover reached €3,012.5m, up 1.3% year-over-year; EBITDA rose to €559.2m (+4.2%), with an 18.6% margin.

• EBIT increased to €419.3m (+5.6%), with a margin of 13.9%; net income grew to €258.8m (+2.1%).

• Q3 2024 turnover was €950.4m, with EBITDA of €177.2m (18.6% margin) and EBIT of €131.2m (13.8% margin).

• Operating cash flow for the period was €354.9m, representing 65.8% of EBITDA.

• Net profit rose 2% year-to-date, or over 6% excluding discontinued activities.

Outlook and guidance

• Confirms maintenance of all 2025 operational and ESG commitments, including an EBITDA margin target above 19% and sustained cash generation equivalent to at least €500m annually starting in 2025.

• 2024 is projected to be another excellent year with sales, margin, and cash flow growth, and further deleveraging.

• Expects revenue growth 20 percentage points above market growth over the five-year period, with continued focus on electrification, internationalization, and eco-efficiency.

• Commitments for 2025 are reconfirmed, with expectations of continued market share gains and margin expansion.

• Q4 is expected to be volatile with special uncertainty due to customer adjustments and sector profit warnings.