Brembo (BRE) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached €2,927.8 million, up 0.3% year-over-year, with EBITDA margin stable at 17.1% and net profit down 14.7% to €197.2 million.

• Q3 2024 saw a 4.8% revenue decline and a 35.4% drop in net result compared to Q3 2023, reflecting challenging market conditions.

• The aftermarket segment performed well, offsetting declines in other applications.

• Despite adverse automotive markets and geopolitical tensions, resilience was demonstrated through stable margins and ongoing global capacity expansion.

• Announced the acquisition of Öhlins Racing and completed the sale of the Pirelli stake.

Financial highlights

• 9M 2024 EBITDA was €501.1 million, up 0.2% year-over-year; EBIT declined 3.5% to €302.0 million (margin 10.3%).

• Net financial expenses rose sharply to €26.0 million, mainly due to currency exchange losses.

• Net financial debt rose to €637.0 million at September 30, 2024, up €182.2 million from year-end 2023.

• Total capex/net investments for 9M 2024 was €268.7 million, with major investments in operations and footprint expansion.

• Personnel expenses increased to €546.1 million, with headcount rising to 15,849.

Outlook and guidance

• FY 2024 revenue expected in line with FY2023; EBITDA margin forecast at 17%.

• Capex/net investments projected at €400 million, net debt around €300 million by year-end.