Gestamp Automoción (GEST) Q4 2024 earnings summary

Executive summary

• Achieved €12,001 million in 2024 revenue, outperforming the auto market by 4.6% at constant FX despite a 1% global vehicle production decline year-over-year.

• EBITDA reached €1,319 million (11% margin, excluding Phoenix Plan), with positive free cash flow and leverage at 1.6x net debt-to-EBITDA.

• Net income for 2024 was €188.5 million, down from 2023, mainly due to lower EBITDA, higher D&A, and increased minority interest.

• Phoenix Plan launched to restructure NAFTA, incurring €25 million in expenses and €6 million in CapEx in its first year, with early signs of margin improvement.

• Maintained a strong balance sheet, disciplined capex, and positive free cash flow generation.

Financial highlights

• Revenue decreased 2.2% year-over-year to €12,001 million.

• EBITDA margin at 11.0% (excluding Phoenix Plan); EBIT margin at 5.1%.

• Free cash flow of €134 million (excluding Phoenix Plan), €103 million as reported.

• Net debt at €2,096.8 million, up from 2023, mainly due to dividend payments and M&A.

• Return on Capital Employed at 15%, up 100 bps from 2022.

Outlook and guidance

• 2025 guidance: low single-digit revenue growth and outperformance vs. market, EBITDA margin in line or slightly above 2024, stable leverage and free cash flow.

• Global light vehicle production expected to remain flat at 89.5 million units in 2025.

• Phoenix Plan targets 8% EBITDA margin in NAFTA for 2025, >10% by 2026, and group-level alignment by 2027.

• Focus on cost control, selective CapEx, and execution of €51.1 billion backlog covering 90% of next five years’ expected revenues.

• Committed to 30% annual payout ratio and maintaining a strong balance sheet.