TI Fluid Systems (TIFS) Q3 2024 TU earnings summary

Executive summary

• Revenue declined 2.9% at constant currency for the nine months ended 30 September 2024, reflecting weaker market volumes and further headwinds in Q3.

• Bookings increased 9% to €1.8 billion, supported by a propulsion-agnostic product portfolio and progress with local Chinese OEMs.

• Operational efficiency and productivity measures were intensified, including additional structural and short-term actions in Q3.

• €40 million share buy-back completed, representing 4.6% of issued share capital.

Financial highlights

• Group revenue for the nine months was €2,513.0 million, down 4.1% year-over-year, with a 120 bps FX headwind.

• Revenue in EMEA rose 5.4% at constant currency, aided by the Cascade Engineering Europe acquisition.

• Asia Pacific revenue fell 9.0% at constant currency, in line with lower OEM production in China.

• Americas revenue declined 7.3% at constant currency, impacted by product line exit and OEM destocking.

Outlook and guidance

• Full-year 2024 revenue expected to decline low to mid-single digits at constant currency versus 2023.

• Efficiency and productivity actions are expected to broadly offset the impact of market softening.

• Adjusted Free Cash Flow conversion forecast at 30% of Adjusted EBITDA or slightly below, due to fluctuating customer production schedules.