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 was €763 million with a margin of 22%; strong operational cash flow of €384 million.

• Significant €1.6 billion non-cash impairment in battery materials led to a net loss of €1.48 billion.

• Efficiency and cost-saving initiatives delivered over €100 million in EBITDA, exceeding the €70 million target.

• Foundation businesses remained robust despite EV slowdown, metal price declines, and geopolitical tensions.

Financial highlights

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

• Adjusted EBITDA fell by €209 million from the previous year; adjusted EBIT was €478 million versus €674 million last year.

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

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

• Free operating cash flow remained strong at €384 million, up from €332 million in 2023.

Outlook and guidance

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

• Battery materials EBITDA expected to be in line with 2024, but without 2024's one-off; catalysis earnings to remain strong; recycling earnings to decline as PGM hedges roll off; specialty materials to improve slightly.

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

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

• Dividend proposed at €0.50 per share, with a payout ratio of 47%.