OPmobility (OPM) H2 2024 earnings summary

Executive summary

• Revenue grew 2.8% year-over-year to €11,647 million, outperforming the global automotive market by 4.0 points in a declining environment.

• Operating margin rose 11.4% to €440 million, with margin rate up 0.4 points to 4.2% of revenue.

• Net result Group share increased 4.2% to €170 million, offsetting higher financial and tax expenses.

• Free cash flow reached €246 million, up 8.3% year-over-year, with strong cash generation and improved financial structure.

• Continued progress on carbon neutrality, targeting Scope 1 and 2 neutrality by end of 2025, and received top ESG ratings.

Financial highlights

• Economic revenue: €11,647 million (+2.8% LFL); consolidated revenue: €10,484 million (+2.0% LFL).

• Operating margin: €440 million (4.2% of revenue), up from €395 million (3.8%) in 2023.

• Net result Group share: €170 million (1.6% of revenue), up from €163 million.

• Free cash flow: €246 million, up 8.3% year-over-year; operational free cash flow up 42% excluding 2023 real estate disposals.

• EBITDA reached €929 million (8.9% of revenue), with gross cash flow at €711 million (6.8% of revenue).

• CapEx controlled at 4.8% of revenue, in line with capital allocation framework.

• Net debt at year-end was €1,577 million, with leverage ratio stable at 1.7x EBITDA.

• Proposed dividend of €0.60 per share, payout ratio 50.8%, up 54% from previous year.

Outlook and guidance

• 2025 market expected to be flattish or stable, with significant regional and regulatory uncertainties.

• Ambition to improve all financial KPIs in 2025: operating margin, net result, and free cash flow all targeted to exceed 2024 levels, while reducing net debt.

• Growth expected primarily from Exterior and Modules segments, with North America as the main geographic driver.

• Lighting segment to remain stable in 2025, with breakeven targeted for 2026 as new launches ramp up.

• CapEx to remain at or below 5% of revenue; leverage ratio expected to improve.

• Focus on accelerating technological, geographical, and customer diversification, and improving operational efficiency.