Umicore (UMI) H2 2024 earnings summary

Executive summary

• Group revenues for 2024 were €3.5 billion, down 11% year-over-year, reflecting headwinds in battery materials and automotive markets.

• Adjusted EBITDA reached €763 million with a 22% margin; strong operational cash flow of €384 million.

• Over €100 million in EBITDA was generated from efficiency measures, exceeding the €70 million target.

• A €1.6 billion non-cash impairment in Battery Materials led to a net loss of €1.48 billion.

• Foundation businesses remained robust despite headwinds from slower EV growth, declining metal prices, and geopolitical tensions.

Financial highlights

• Revenues declined 11% year-over-year to €3.5 billion, mainly due to lower battery materials and automotive demand.

• Adjusted EBITDA was €763 million, €209 million below the previous year.

• Adjusted EBIT was €478 million, down from €674 million last year.

• Adjusted net profit (group share) was €255 million; adjusted EPS €1.06.

• CapEx reduced by 35% to €555 million, below the €650 million target.

Outlook and guidance

• 2025 adjusted EBITDA guidance: €720–780 million, not accounting for potential geopolitical or tariff impacts.

• Battery Materials EBITDA expected to be similar to 2024, excluding one-offs and delayed customer ramp-ups.

• Catalysis earnings to remain strong; Recycling EBITDA to decline as PGM hedges roll off; Specialty Materials EBITDA to see a slight increase.

• CapEx to be reduced by another 20% in 2025; efficiency savings target increased to €200 million cumulative.

• Leverage ratio expected to rise toward 2.5x in 2025; free cash flow projected to be negative due to CapEx and IONWAY contributions.