Eurogroup Laminations (EGLA) H1 2024 earnings summary

Executive summary

• 1H 2024 results aligned with expectations, with triple-digit EV & Automotive growth in China and a new strategic partnership with Hixih, while Industrial BU showed recovery in Europe and expansion into India via the Kumar acquisition.

• Revenues for H1 2024 were €422.5 million, down 6.9% year-over-year, mainly due to a contraction in the Industrial segment, partially offset by strong EV & Automotive growth.

• Profitability improved sequentially for both business units, though revenue and EBITDA declined year-over-year.

• Significant investments continued, mainly to expand EV & Automotive production capacity.

• Strategic moves included a preliminary JV agreement in China and the acquisition of 40% of Kumar Precision Stampings in India.

Financial highlights

• Group revenues for 1H 2024 were €422.5m, down 6.9% year-over-year; Adjusted EBITDA was €51.1m, down 11.3%, with a margin of 12.1%.

• EBIT was €30.1m (7.1% margin), both lower than 1H 2023.

• Net profit for 1H 2024 was €17.9m, representing a 4.2% margin on revenues.

• Net financial debt rose to €210.5m, mainly due to €53.4m in CAPEX and increased working capital.

• Cash and cash equivalents reached €255.6m at June 2024.

Outlook and guidance

• 2024 organic guidance and mid-term targets confirmed, with revenues expected at €900–960m and EBITDA at €120–130m.

• Persistent EBITDA margin anticipated, supported by favorable business mix and pass-through mechanisms.

• 10 new SOPs for traction motor cores expected in 2024 across geographies.

• Medium-term (2024–2026) targets: revenue and EBITDA CAGR of 24–27%, cumulative CAPEX of €140m for 2025–2026.

• Organic growth targets reaffirmed, supported by strong EV & Automotive order book and pipeline.