Schaeffler (SHA0) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue was €18.188 billion, up 11.5% reported and 12.9% at constant currency, including €1.949 billion from Vitesco subsidiaries consolidated from October 1.

• EBIT margin before special items fell to 4.5% from 7.3%; net loss was €632 million, including €725 million in special items.

• Free cash flow before M&A cash flows was €363 million, above revised guidance of €200–300 million.

• A €0.25-per-share dividend was proposed, with the payout ratio above the target range.

Financial highlights

• Q4 sales increased 47.3% reported and 49.2% FX-adjusted, mainly due to Vitesco consolidation.

• Q4 gross margin declined to 16.9% from 19.7%, diluted by Vitesco; EBIT margin before special items fell to 1.7% from 5.5%.

• FY EBIT before special items was €811 million, down 31.6% year over year; margin declined to 4.5% from 7.3%.

• Net income before special items was €93 million, down 85.0%; EPS was -€0.86 versus €0.46.

• Net loss included €488 million in structural-measure provisions and €352 million in deferred tax asset impairments.

Outlook and guidance

• FY 2025 revenue guidance is €23–25 billion, with EBIT margin before special items of 3–5%.

• Free cash flow before M&A cash flows is guided at -€200 million to €0; integration and restructuring cash outflows are expected to remain significant.

• 2025 division guidance: E-Mobility revenue €5.0–5.5 billion and margin -17% to -14%; Powertrain & Chassis revenue €9.0–9.5 billion and margin 10–12%.

• 2025 division guidance: Vehicle Lifetime Solutions revenue €3.0–3.25 billion and margin 14–16%; Bearings & Industrial Solutions revenue €6.0–6.75 billion and margin 5–7%.

• Synergy potential of €600 million annually is targeted by 2029, alongside €665 million in one-off costs; structural measures target €215 million annually and €815 million recurring EBIT impact from 2029.