NV Bekaert (BEKB) H2 2024 earnings summary

Executive summary

• Delivered €4 billion in sales for 2024, down 9% year-over-year due to weaker demand and lower passed-on material costs, with resilient EBIT margin at 8.8% and robust free cash flow of €193 million.

• Strategic transformation and portfolio rationalization continued, including divestments in Costa Rica, Ecuador, and Venezuela, and successful integration of BEXCO and Flintstone acquisitions.

• Underlying EPS was €5.55 (down 4%), leverage remained low at 0.5x net debt/EBITDA, and net result from continued operations was €244 million.

• Proposed dividend of €1.90 per share (+6% YoY) and ongoing €200 million share buyback program.

• Delays in growth platforms, especially hydrogen, but long-term potential remains intact.

Financial highlights

• Sales declined 9% year-over-year to €4.0 billion; EBIT margin stable at 8.8% despite lower volumes; underlying EBIT €348 million (down from €388 million in 2023).

• Steel Wire Solutions EBIT margin rose to 10.4%, nearly 3 percentage points higher than 2023; BBRG sales down 6% with operational recovery in Q4.

• Free cash flow was €193 million; net debt/EBITDA at 0.5x; working capital increased due to acquisitions and currency impact.

• Underlying EPS €5.55; basic EPS €4.56; effective tax rate 24%.

• Proposed dividend of €1.90 per share (+6% YoY); €200 million share buyback ongoing.

Outlook and guidance

• 2025 expected to see flat to slightly improving revenues and at least stable margins, with weak business environment from H2 2024 persisting.

• Seasonality expected to be evenly split between first and second half; modular ramp-up to match capacity with demand.

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

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

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