TI Fluid Systems (TIFS) H1 2024 earnings summary

Executive summary

• Adjusted EBIT margin rose 40 basis points to 7.9% in H1 2024, with strong operational execution and resilience in a flat or declining market.

• Bookings increased 11% to €1.5 billion, driven by a propulsion-agnostic portfolio and significant wins with local Chinese OEMs, including BYD.

• Interim dividend increased 4.3% to €0.024 per share, with €45.3 million returned to shareholders via buybacks and dividends.

• Enhanced position in China with multiple new awards and 40 program launches, over half with local OEMs.

• Continued strategic progress and resilience despite volatile market conditions.

Financial highlights

• Revenue for H1 2024 was €1,719 million, down 1.4% at constant currency, broadly in line with global light vehicle production.

• Adjusted EBIT increased to €135.5 million (+2.7%), with margin up 40bps to 7.9%.

• Adjusted EPS grew 14.6% to 13.9 € cents, aided by lower finance expenses and a reduced tax rate (29.9% vs. 34.7%).

• Adjusted ROCE improved by 370bps to 25.4%.

• Adjusted free cash flow was negative at €(14.4) million, impacted by working capital outflows expected to unwind in H2.

Outlook and guidance

• 2024 revenue expected to be slightly below last year at constant currency due to weaker production outlook.

• Full-year adjusted EBIT margin guidance raised to above 7.6%, reflecting productivity gains and progress toward double-digit margins mid-term.

• Adjusted free cash flow conversion target maintained at 30% for the full year.

• Mid-term targets reaffirmed: double-digit adjusted EBIT margin and revenue growth to €3.8–4.2bn by 2026.

• Softer short-term market volume outlook, with global light vehicle production now expected to decline 2% in 2024.