Accelleron Industries (ACLN) H1 2025 earnings summary

Executive summary

• Achieved strong H1 2025 growth with revenues up 20.3% to USD 608 million and net income up 29.5% to USD 114.7 million, driven by turbocharger market share gains and robust demand in marine, energy, and data center segments.

• Product business grew over 35%, service business over 10%, with significant contributions from backup power, fuel injection systems, and marine retrofits.

• Free cash flow conversion improved to 70.3% from 34.4% in H1 2024.

• Strategic investments and acquisitions, especially in Italy, expanded fuel injection system capacity and technology.

• Marine services retrofits and decarbonization solutions grew 60% year-over-year, supporting regulatory compliance.

Financial highlights

• Revenues reached USD 608 million (+20.3% YoY, +18.5% organic); operational EBITA rose 20.8% to USD 154.9 million with a 25.5% margin.

• Segment revenues: Medium/low speed up 18.9% to USD 458.8 million; high speed up 24.6% to USD 149.2 million.

• Net income margin improved to 18.9%; EPS USD 1.17 (+30.0% YoY).

• Free cash flow conversion at 70.3%; net cash from operating activities USD 105.9 million (+149.2% YoY).

• One-off non-operational costs of USD 9 million, mainly from FX losses and M&A-related expenses.

Outlook and guidance

• Upgraded 2025 revenue growth guidance to 16–19% (constant currency), with operational EBITA margin guidance at 24–25% due to new 39% US tariff on Swiss goods.

• Free cash flow conversion expected at 90–100%, net leverage at 0.5–1.5x, and stable to growing dividend policy.

• Shipyard order books and regulatory changes in maritime emissions support future demand.

• Data center backup and prime power solutions expected to see continued strong demand.

• Core markets remain resilient despite geopolitical uncertainty.