Akwel (AKW) H1 2024 earnings summary

Executive summary

• First-half 2024 net income reached €20.2 million, with a recurring operating margin of 4.6% of sales.

• Sales declined by 3.1% year-over-year to €528.8 million, with sharper drops in France and Europe, but growth in North America and Asia.

• Net cash position stood at €106 million as of June 30, 2024.

Financial highlights

• EBITDA decreased by 1.3% to €49.2 million compared to the same period last year.

• Current operating income fell 21.6% to €24.4 million, with an operating margin of 4.6%.

• Net margin was 3.8%, slightly down from 4.1% a year earlier.

• Capital expenditure for the half-year was €23.8 million, up from €22.9 million in H1 2023.

Outlook and guidance

• Anticipates a slight decline in full-year sales due to global market softness and automaker overstocking.

• Expects a drop in SCR series business before its scheduled end in 2025, excluding spare parts.

• Investments have enhanced agility to adapt to shifts between electric, hybrid, and combustion powertrains.