Accelleron Industries (ACLN) H2 2024 earnings summary

Executive summary

• Revenue surpassed $1.023 billion in 2024, up 11.8% year-over-year, with operational EBITDA rising 17% to $262 million and a margin of 25.6%.

• Net income increased 63% to $179 million, driven by reduced non-operational costs and strong market demand.

• The company celebrated its 100th anniversary, completed its transition to an independent listed entity, and executed two strategic acquisitions (OMC2 and TNM).

• CHF 180 million bond issuance was several times oversubscribed, supporting corporate activities.

• Expanded digital and fuel injection capabilities, strengthening the global value chain.

Financial highlights

• Revenue reached $1,023 million, up 11.8% year-over-year (12.9% in constant currency), exceeding guidance.

• Operational EBITDA margin improved by 120 basis points to 25.6%.

• Free cash flow conversion at 99%, with free cash flow up by $69 million to $178 million.

• Dividend proposed at CHF 1.25 per share, a 47% increase, with a payout ratio of 76%.

• Leverage closed at 0.7x operational EBITDA, despite $56 million in M&A investments.

Outlook and guidance

• 2025 guidance: constant currency revenue growth of 4%-6% (2%-4% organic), operational EBITDA margin of 25%-26%.

• Free cash flow conversion expected at 90%-100%; net leverage target 0.5-1.5x.

• Continued investment in R&D for new fuel applications and digital solutions.

• Capital framework unchanged; focus on attractive dividends, selective M&A, and potential share buybacks if excess cash remains.

• Positive market momentum expected in marine and energy, with strong order books and demand for backup power.