Carel Industries (CRL) H2 2024 earnings summary

Executive summary

• 2024 marked a transition year with an 11% revenue decline to €578.5M, mainly due to a sharp drop in heat pump sales and demand contraction in key sectors, but profitability and cash generation remained strong, supporting record investments in innovation and sustainability.

• EBITDA margin held at 18.1% despite lower revenues, supported by cost containment and higher gross profitability.

• Americas delivered strong results, while EMEA and APAC underperformed, especially in heat pumps and refrigeration.

• Q4 showed significant improvement, with the revenue decline narrowing and order intake rebounding, especially in refrigeration.

• Launched new sustainability plan and innovative products, maintaining leadership in HVAC/R control solutions and achieving key certifications.

Financial highlights

• Revenue: €578.5M, down 11% year-over-year; organic revenue declined by 13.7%.

• EBITDA: €104.9M (18.1% margin), down 23.6% from €137.2M (21.1% margin) in 2023.

• Net profit: €62.6M, down 11.7% from €70.9M in 2023; tax rate stable at 20.7%.

• CapEx reached a record €31.6M (5.5% of sales), mainly for R&D and plant expansion.

• Proposed dividend of €0.165 per share, about a 30% payout ratio, with payment scheduled for June 2025.

Outlook and guidance

• Q1 2025 revenues expected to be flat year-over-year, with acceleration anticipated from Q2, driven by EMEA refrigeration recovery and APAC inverter launches.

• Mid-term EBITDA margin target remains 19–20% with high single-digit growth; not formal 2025 guidance.

• CapEx guidance remains at ~5% of sales, including sustainability investments.

• Net working capital expected stable in 2025, with potential for mid-term improvement below 20% of sales.

• Macroeconomic volatility, geopolitical tensions, and limited visibility continue to impact the business environment.