NV Bekaert (BEKB) H2 2024 earnings summary

Executive summary

• Delivered €4 billion in sales for 2024, down 9% year-over-year due to lower volumes and passed-on material costs, but maintained EBIT margin at 8.8% through mix improvement and cost control.

• Underlying EPS €5.55 and leverage remained broadly stable with previous years.

• Continued portfolio transformation with divestments in Costa Rica, Ecuador, and Venezuela at attractive multiples.

• Successfully integrated BEXCO and Flintstone acquisitions; operational recovery in growth businesses in Europe and North America.

• Ongoing cost initiatives and operational excellence, with further cost base actions planned for 2025.

Financial highlights

• Sales of €4.0bn, down 9% year-over-year; EBITu margin stable at 8.8% (-20bps); underlying EPS €5.55, down 4%.

• Free cash flow of €193 million; net debt/EBITDAu 0.5x.

• Proposed dividend of €1.90 per share (+6% year-over-year); ongoing €200m share buyback.

• EBITu of €348m (down from €388m in 2023); reported EBIT €296m after €52m one-off costs.

• Net result for the period from continued operations €244m; effective tax rate 24%.

Outlook and guidance

• Weak business environment from H2 2024 expected to persist into 2025; flat to slightly improving revenues and at least stable margins anticipated.

• Mid-term ambition to achieve 10% EBIT margin by 2026 remains, though growth platform contributions may be delayed.

• CapEx for 2025 expected to remain flat at €190 million, with flexibility to increase if growth returns.

• Working capital targeted to reduce to 15% of sales from 16.5% at year-end 2024.

• Board committed to progressive dividend growth and ongoing share buyback.