Brembo (BRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached €957.0 million, down 4.7% year-over-year, with EBITDA margin at 16.0% and net profit at €51.1 million, a 31.9% decline from Q1 2024.

• Like-for-like (excluding Öhlins), sales declined 8.6% and EBITDA dropped 18.0% year-over-year.

• The Öhlins acquisition was completed in January 2025, contributing to a 40.7% increase in the racing segment.

• Revenue declines were driven by lower volumes, adverse exchange rates, and weak automotive demand, partially offset by perimeter effects from the Öhlins acquisition.

• Management remains confident in long-term strategy, emphasizing ongoing investment and innovation.

Financial highlights

• Q1 2025 EBITDA was €153.3 million, down 13.3% year-over-year; EBIT fell 26.0% to €83.5 million.

• Net profit: €51.1 million (-31.9%); EPS: €0.16 (vs. €0.23 in Q1 2024).

• Net financial debt rose to €778.6 million, up €249.1 million year-over-year, mainly due to the Öhlins acquisition and negative operating cash flow.

• Total capex/net investments for Q1 was €102.7 million (10.3% of revenue), mainly directed to operations and footprint expansion.

• Net financial charges increased to €9.3 million, mainly due to higher debt costs and currency losses.

Outlook and guidance

• 2025 revenue expected in line with 2024, including Öhlins, assuming stable geopolitical conditions in H2.

• EBITDA margin forecasted above 16%; capex planned at ~€400 million; net debt projected at €780 million.

• Management expects market stabilization in the second half of 2025.