FACC (FACC) Q3 2024 earnings summary

Executive summary

• Revenue rose 25.1% year-over-year to EUR 642.6 million in the first nine months of 2024, driven by strong aviation industry demand and ramp-ups across all major OEMs.

• EBIT reached EUR 21.8 million, more than quadrupling from EUR 5.0 million in the prior-year period, though still below internal targets.

• Order backlog remains stable at USD 5.8 billion, with recent additions from new COMAC orders.

• Free cash flow was negative at minus EUR 22.4 million, mainly due to high inventories and working capital buildup.

• Workforce expanded by 335 FTEs in 2024, with a new training center launched to support growth.

Financial highlights

• Q3 YTD 2024 revenue was EUR 642.6 million, up from EUR 513.9 million year-over-year.

• EBIT for the first nine months was EUR 21.8 million, up from EUR 5.0 million year-over-year; Q3 EBIT was slightly negative at minus EUR 0.8 million.

• EBITDA for Q3 YTD 2024 was EUR 50.2 million, compared to EUR 55.2 million in Q3 YTD 2023.

• Inventory increased to around EUR 190 million in Q3, up EUR 10 million from Q2.

• Net financial debt at EUR 255.3 million as of Q3 2024; leverage ratio at 3.33.

Outlook and guidance

• Full-year 2024 revenue growth expected between 10%-20%, with EBIT margin of 3%-4%.

• Management targets at least EUR 10 million inventory reduction by year-end 2024 and EUR 50 million by end of 2025.

• Productivity gains and cost reductions are expected to support margin improvement, with EBIT margin targets of 7.5%-10% by 2027-2028.

• Free cash flow is targeted to be at least zero or positive by year-end, depending on inventory reduction and year-end deliveries.

• Focus in Q4 2024 will be on cost reduction, efficiency measures, and profitable growth.