TI Fluid Systems (TIFS) Q4 2024 earnings summary

Executive summary

• Revenue declined 4.4% year-over-year to €3,360.3m, with constant currency decline of 3.5%, reflecting industry headwinds and regional market challenges.

• Adjusted EBIT margin expanded 40bps to 7.8% due to productivity and efficiency initiatives, despite lower volumes and persistent labor inflation.

• Adjusted Net Income rose 2.9% to €136.7m and Adjusted EPS increased 5.7% to 27.2 Euro cents, reflecting operational discipline and share buybacks.

• Largest annual cash return to shareholders since IPO, totaling €69.2m via dividends and share buybacks.

• Pending acquisition by ABC Technologies expected to complete in H1 2025.

Financial highlights

• Adjusted EBIT up 0.5% to €260.8m; Adjusted EBITDA up 0.5% to €394.9m.

• Adjusted Free Cash Flow of €113.0m, with 29% conversion of Adjusted EBITDA, in line with guidance.

• Statutory Operating Profit fell 32% to €132.4m due to higher restructuring costs and a non-cash write-down from the Americas product line exit.

• Profit for the year (statutory) was €32.5m, down from €83.6m.

• Net leverage at 1.6x Adjusted EBITDA; Adjusted ROCE at 26.8%.

Outlook and guidance

• 2025 expected to be a transition year with flat global light vehicle production before growth resumes in 2026-27.

• Strategic focus on EV growth, operational efficiency, and capitalizing on slower ICE decline.

• No final dividend for 2024 due to pending acquisition; future returns to be determined post-transaction.