Grupo Industrial Saltillo (GISSA A) Q4 2024 earnings summary

Executive summary

• 2024 was a consolidation year, with operational efficiency, stronger KPIs and higher-value output supporting profitability despite softer volumes.

• 2025 priorities include higher utilization, efficiency, cash flow growth and a continued shift toward value-added parts and commercial vehicles.

Financial highlights

• FY2024 revenue was US$1,005M, down 3% YoY; 4Q24 revenue was US$231M, down 5%.

• FY2024 EBITDA reached US$112M, up 43% YoY; 4Q24 EBITDA was US$28M, up 42%.

• FY2024 EBITDA margin was 11%, versus 8% in 2023; 4Q24 margin was 12%, versus 8% in 4Q23.

• Lower raw-material and energy costs affecting price indexation and lower casting volume weighed on revenue; value-added parts and mix partly offset the impact.

Outlook and guidance

• 2025 CAPEX is planned at US$85M, including US$40M for maintenance and US$45M for growth and optimization; most expansion spending is concentrated in H1.

• FY2025 EBITDA per ton is expected to improve 10%–15%, supported by utilization, efficiency and ramp-ups in higher-margin machining and plating.

• San Luis Potosí’s two casting lines are running three shifts; output is expected to rise in H2 as launches stabilize, with 80%–90% utilization targeted.

• Priorities include concentrating capacity on strategic, high-margin products and expanding machining and other value-added processes across regions.

• Medium- to long-term plans include process and materials innovation and capturing outsourcing opportunities from OEMs and Tier 1 suppliers.