AMAG Austria Metall (AMAG) H1 2024 earnings summary

Executive summary

• Solid earnings in H1 2024 despite weak European demand, with revenue at EUR 707.7 million, EBITDA at EUR 95.3 million, and net income after taxes at EUR 33.4 million; operating cash flow improved to EUR 75.7 million.

• Full-year EBITDA guidance was raised to EUR 160–180 million, reflecting improved earnings expectations and stable production.

• AMAG maintained its top global sustainability ranking, expanded low-carbon certifications, and received multiple Airbus awards for quality, sustainability, and innovation.

• Broad product portfolio and stable production at the Alouette smelter helped cushion subdued demand in key industries.

• Dividend of EUR 1.50 per share was paid in April 2024.

Financial highlights

• Revenue declined 11.1% year-over-year to EUR 707.7 million, mainly due to lower prices and shipment volumes; EBITDA margin was 13.5% and EBIT margin 7.2%.

• Net income after taxes was EUR 33.4 million, a 34.5% decrease year-over-year; earnings per share were EUR 0.95.

• Operating cash flow rose to EUR 75.7 million, up from EUR 68 million last year; free cash flow was EUR 27.2 million.

• Net financial debt increased to EUR 390.0 million as of June 30, 2024, with gearing at 53.5%.

• Equity position remains high and stable, with equity at EUR 742.5 million and cash and cash equivalents at EUR 143.5 million.

Outlook and guidance

• Full-year 2024 EBITDA guidance raised to EUR 160–180 million, based on current aluminium price, shipments, and economic trends.

• No significant change expected in the subdued economic environment for H2 2024, especially in Europe.

• Stable production in Canada and solid aluminium prices support Metal Division, but alumina price increases expected to impact H2 2024.

• Automotive sector remains challenging, but order intake is strong; positive outlook for aerospace and industrial applications.

• Rolling Division anticipates slightly improved sales volumes in H2 2024.