Sogefi (SGF) Q4 2024 earnings summary

Executive summary

• Completed the sale of the Filtration Business Unit for an enterprise value of €374 million, reducing group complexity and exposure to powertrain risks, and generating a €122.4 million capital gain.

• Net profit surged to €141.3 million in 2024, mainly due to the Filtration sale, with ongoing operations net income at €18.0 million, up from €6.4 million in 2023.

• Free cash flow turned positive, reaching €348.3 million (including €317.9 million from discontinued operations), and net debt (excluding IFRS 16) dropped to €9.5 million from €200.7 million.

• Revenues declined by 1.7% to €1,022.3 million, mainly due to market weakness in Europe and North America.

• Extraordinary dividend of €109.6 million paid in July 2024, with a proposed dividend of €0.15 per share for 2024.

Financial highlights

• EBITDA rose 16% to €125.3 million (margin 12.3%), and EBIT increased to €46 million (margin 4.5%), both up from 2023.

• Contribution margin increased to €297.4 million (29.1% of sales), up from €288.4 million (27.7%).

• Net profit from continuing operations tripled to €18 million; total net profit reached €141.3 million, including divestment gains.

• Free cash flow was €30.4 million (normalized €15 million), benefiting from non-recurring positive flows.

• Net debt reduced to €9.5 million cash position at year-end 2024 (total net debt €55 million including IFRS 16), after dividend payments.

Outlook and guidance

• Revenue is expected to decline in 2025, slightly more than the market, especially in early months, due to European exposure.

• EBIT for 2025 is forecasted to be similar or slightly higher than 2024, excluding non-recurring items.

• Dividend proposal of €0.15 per share for 2024 and 15 shares per action for 2025.

• Free cash flow target for 2025 set at €15 million, with stable CapEx and working capital.

• Suspension margins expected to improve by 1-2 percentage points in 2025; Air and Cooling margins to remain stable or slightly lower.