SAF-Holland (SFQ) Q4 2024 TU earnings summary

Executive summary

• Group sales declined 11% year-over-year to EUR 1,877 million, mainly due to weak trailer and truck OE markets in North America and EMEA, partially offset by robust aftermarket and acquisition-related sales.

• Adjusted EBIT margin reached a record 10.1%, up from 9.6% in the prior year, driven by favorable customer mix, cost discipline, and Haldex integration synergies.

• Aftermarket business share rose to almost 38% of sales, up from 31.2% the previous year, supported by organic growth and Haldex acquisition.

• Aftermarket business demonstrated resilience, helping to offset declines in original equipment sales.

• Cost structure was rapidly adjusted to lower sales, supporting profitability.

Financial highlights

• Group sales: EUR 1,877 million in 2024 vs. EUR 2,106.2 million in 2023 (down 11% year-over-year).

• Adjusted EBIT: ~EUR 190 million (down 6% from EUR 202.1 million year-over-year).

• Adjusted EBIT margin: 10.1% in 2024 vs. 9.6% in 2023.

• Q4 sales: EUR 424 million (down nearly 18% year-over-year), with Q4 adjusted EBIT margin at 10.4%.

• Investments in property, plant, equipment, and intangibles: ~EUR 57 million (down 7% year-over-year).

Segment performance

• EMEA: Sales down 7% to EUR 883 million; organic decline of ~13% year-over-year, partially offset by acquisitions and strong aftermarket demand; adjusted EBIT margin improved to 8.7% from 7.7%.

• Americas: Sales down 16% to EUR 747 million; organic decline of ~20% year-over-year, with aftermarket strength and cost cutting supporting margins; adjusted EBIT margin rose to 11.3% from 10.9%.

• APAC: Sales down 8% to EUR 247 million; organic decline of ~9% year-over-year, mainly due to reduced infrastructure spending in India and weather impacts in Southeast Asia; adjusted EBIT margin nearly stable at 11.7%.

• Original equipment trailer sales fell 21% to ~EUR 916 million; original equipment truck sales fell 14% to ~EUR 249 million.

• Aftermarket sales increased by ~EUR 54 million to ~EUR 712 million, benefiting from Haldex integration.