CIR (CIR) H2 2024 earnings summary

Executive summary

• Consolidated net result reached €132.2 million, up from €32.8 million, driven by major asset sales, improved core business margins, and strong healthcare growth, while automotive revenues declined.

• Group revenues increased 1.6% year-over-year to €1,821.1 million, with KOS up 6.2% and Sogefi down 1.7%.

• Major divestitures included Sogefi's Filtration division (€331.2 million), a Milan real estate property, and the remaining GEDI stake, generating significant capital gains and cash flow.

• CIR executed a significant share buyback, acquiring 166.9 million shares for €99.6 million and cancelling up to 191.1 million treasury shares, increasing equity per share.

• Free cash flow before dividends and buybacks was €387.2 million; net financial position of the parent company improved to €341.3 million.

Financial highlights

• EBITDA rose to €272.1 million (14.9% margin), up from €238.6 million (13.3%) in 2023; EBIT increased to €100.0 million (5.5% margin) from €66.6 million (3.7%).

• Net financial position before IFRS16 improved to +€202.6 million from -€17.8 million at end-2023, reflecting strong cash flow and divestitures.

• Net result from continuing operations was €39.0 million, with assets held for sale contributing €93.2 million.

• Shareholder's equity per share rose to €0.71 from €0.68; group equity increased to €791.2 million.

• Sogefi's NFP before IFRS16 improved to -€9.5 million from -€200.7 million.

Outlook and guidance

• Limited visibility for 2025 due to macroeconomic and geopolitical uncertainties, including US tariffs and market volatility.

• KOS expects further occupancy and margin recovery in 2025, driven by higher occupancy, new facilities, and tariff realignment, especially in Germany.

• Sogefi anticipates a low- to mid-single-digit revenue decline in 2025, with a slightly increasing recurring EBIT margin, barring major disruptions.

• Financial asset management will remain prudent amid volatile markets.