Schaeffler (SHA0) Q3 2024 earnings summary

Executive summary

• Q3 sales were €3,957m, down 1.1% at constant currency; EBIT before special items was €187m and margin was 4.7%, versus 8.4% a year earlier.

• 9M revenue was €12,233m, up 1.0% at constant currency; EBIT margin before special items fell to 5.8% from 7.9%.

• Q3 free cash flow before M&A improved to €188m from €182m; 9M free cash flow was €97m versus €211m.

• Vehicle Lifetime Solutions’ profitable growth and Automotive Technologies’ E-Mobility gains partly offset weaker Bearings & Industrial Solutions results.

• Vitesco merger completed, with full consolidation from Q4 2024; FY 2024 guidance confirmed.

Financial highlights

• Q3 gross margin was 21.8% (Q3 2023: 21.7%); net income was -€13m versus €150m a year earlier.

• 9M EBIT before special items fell 26.1% to €713m; net income attributable to shareholders fell to €250m from €416m, and EPS to €0.38 from €0.63.

• Q3 free cash flow before M&A was €188m; 9M free cash flow before M&A was €97m, affected by integration outflows and merger-related interest payments.

• Q3 capex was €227m and capex ratio 5.7%; 9M reinvestment rate was above 1.0.

Outlook and guidance

• FY 2024 guidance confirmed: considerable constant-currency revenue growth, EBIT margin before special items of 5–8%, and free cash flow before M&A of €200–300m.

• Dividend payout ratio maintained at 40–60% of net income before special items; dividend policy emphasizes continuous payouts.

• Four-division reporting structure takes effect in 2025; Vitesco is fully consolidated from Q4 2024.