OPmobility (OPM) H1 2024 earnings summary

Executive summary

• Achieved solid earnings growth in H1 2024 compared to both H1 and H2 2023, with all financial KPIs improving year-over-year and sequentially, and the US becoming the largest revenue contributor.

• Outperformed the global automotive market by 3.8 points, despite a flat or slightly declining market, driven by robust commercial momentum and key awards in hydrogen and lighting.

• Robust commercial momentum with order intake in 2024 exceeding turnover across all business groups.

• Strong progress in hydrogen and lighting businesses, supporting long-term growth and major advances in hydrogen mobility.

• Interim dividend of €0.24 per share declared for 2024.

Financial highlights

• H1 2024 revenue reached €5,939 million, up 2.1% year-over-year and 3.3% like-for-like, with operating margin up 12% to €234 million (4.3% of revenue).

• Net result stable at €100 million, representing 1.9% of revenue, despite higher interest rates and non-recurring items.

• Free cash flow at €157 million, up 14.6% year-over-year, representing 2.9% of revenue.

• Net debt reduced to €1,491 million as of June 30, 2024, with leverage ratio at 1.6x EBITDA and liquidity of €2.3 billion.

• Investments totaled €258 million (4.8% of revenue), in line with capital allocation framework.

Outlook and guidance

• Full-year 2024 guidance confirmed, targeting improvement in all financial aggregates versus 2023, including operating margin, net result, and free cash flow.

• Expects H2 sales to be slightly lower than H1 due to traditional seasonality, but still anticipates year-over-year growth.

• Hydrogen revenue target for 2025 revised to €150 million (from €300 million) due to customer delays, but long-term expectations unchanged.

• Group aims to continue outperforming global automotive production and maintain financial discipline despite a forecasted decline in H2 2024 automotive production.