Umicore (UMI) H1 2024 earnings summary

Executive summary

• H1 2024 performance was impacted by a challenging macroeconomic environment, lower EV sales growth, and unfavorable precious metal prices, especially for PGMs and cobalt.

• A €1.6 billion non-cash impairment in Battery Materials, mainly related to Asian assets, led to a net loss of €1.47 billion and reduced book value to €1.5 billion.

• Strategic review of Battery Materials is ongoing, with a focus on maximizing asset utilization and capital discipline; conclusions expected Q1 2025.

• Foundation businesses (Catalysis, Recycling, Specialty Materials) delivered strong returns and supported group resilience, aided by cost discipline.

Financial highlights

• H1 2024 revenues were €1.8 billion, down 13% year-over-year; adjusted EBITDA was €393 million (margin 21.8%), down €125 million from H1 2023.

• Adjusted EBIT was €241 million; adjusted net profit group share was €118 million (EPS €0.49); reported net loss group share was €1.47 billion due to impairments.

• Free operating cash flow reached €168 million; CapEx was €269–285 million, nearly 20% lower year-over-year.

• Interim dividend of €0.25 per share proposed for August 2024.

Outlook and guidance

• 2024 group adjusted EBITDA is expected between €760–800 million, assuming current metal prices.

• Battery Materials EBITDA to be around break-even, including a €50 million positive one-off; volumes anticipated at or slightly below 2023.

• Catalysis EBITDA expected in line with previous record year; Recycling and Specialty Materials EBITDA to be below last year and market expectations.

• Leverage expected to remain well below 2.5x by year-end.