Racing Force (RFG) H2 2024 earnings summary

Executive summary

• Achieved record sales of €65.7 million in FY 2024, up 4.8% year-over-year, with adjusted EBITDA of €10.5 million (16% margin), a 72% cash conversion rate, and net financial position close to zero.

• Adjusted net income rose 23% to €5.9 million (9% margin), driven by higher EBITDA and favorable FX gains.

• Over 60 new products developed for 2025, all helmets certified to new FIA A standard.

• Customer base expanded to over 4,000 worldwide, with products sold in 84 countries and a workforce of 570+ from 39 nationalities.

• Proposed dividend of €0.09 per share, with payment scheduled for May 14, 2025.

Financial highlights

• Sales grew 4.8% year-over-year to €65.7 million; core business sales up 6.1% excluding non-recurring orders; 18.1% CAGR from 2020-2024.

• Adjusted EBITDA reached €10.5 million (16% margin), up from €9.6 million in 2023.

• Cash flow from operations was €7.6 million (72% cash conversion), up from €1.0 million in FY 2023.

• Net financial position improved to €0.1 million from €3.2 million, aided by €7.3 million capital increase.

• Board proposed a dividend of €2.5 million (€0.09 per share).

Outlook and guidance

• 2025 expected to be another year of growth, targeting new all-time sales records and high single-digit order book growth.

• Q1 2025 sales in line with 2024, with significant order intake and growth anticipated from Q2, especially for OMP products in the US.

• New helmet regulations (FIA and Snell) and commercial agreements expected to drive sales from Q2 and Q4 2025.

• Defense segment targets certification and commercialization of Riot and Gladiator helmets in H2 2025, with global rollout planned.

• Expansion of Bahrain factory and potential second facility to increase production capacity and mitigate tariff risks; 2025 CapEx expected at €4-5 million plus recurring CapEx at ~5% of sales.