Gestamp Automoción (GEST) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 revenues declined 1.6% year-over-year to €8.93 billion, with EBITDA at €936 million, down 7.4%, and net income at €127 million, mainly due to lower volumes and profitability in Western Europe.

• Challenging market conditions, especially in Western Europe, led to the implementation of the Phoenix Plan in NAFTA and cost control measures in Europe.

• Free cash flow was negative €214 million, impacted by EBITDA decline, adverse currency effects, and extraordinary working capital outflows.

• Net debt increased by €379 million to €2,437 million, driven by negative free cash flow, dividend payments, and acquisitions.

• Despite headwinds, market outperformance was achieved, with revenues exceeding global production growth by 6.3–6.7 percentage points at constant FX.

Financial highlights

• EBITDA margin for 9M 2024 was 10.5% (10.7% excluding Phoenix Plan), down from 11.1% in 2023.

• EBIT for 9M 2024 was €405 million (4.5% margin), down 20% year-over-year.

• Q3 2024 revenues were €2,787 million, down 0.4% year-over-year; Q3 EBITDA was €294 million, down 5.5%.

• Free cash flow for 9M 2024 was negative €214 million, with Q3 at negative €169 million.

• Gescrap segment revenue declined 9.8% year-over-year to €435 million, but EBITDA margin improved to 8.5%.

Outlook and guidance

• 2024 guidance updated to reflect lower sales, slightly reduced EBITDA margin versus 2023, and positive free cash flow, with leverage targeted at 1.7x net debt/EBITDA.

• Auto business expected to outperform market production growth in the low single-digit range; Gescrap to maintain similar EBITDA to 2023.

• 2025 volumes expected below prior forecasts due to slower EV penetration in Western Europe and the US.

• Focus remains on cost control, efficiency, and flexibility, especially in Western Europe.

• Long-term targets for 2027 include profitable growth, operational excellence, and circular economy leadership.