Eurogroup Laminations (EGLA) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 results were stable year-over-year, with strong EV & Automotive growth—especially in China—offsetting weak industrial demand in Europe.

• Strategic initiatives included the acquisition of Kumar Precision Stampings in India and partnerships in China, supporting global expansion and transformer business growth.

• Order book remains strong and diversified, with ongoing expansion in Asia and new partnerships.

• Guidance for 2024 is confirmed at the low end, with mid-term growth targets for 2024–2026 reaffirmed.

Financial highlights

• 9M 2024 revenues reached €649.1M (+0.8% YoY); Q3 2024 revenues were €227M (+19% YoY); adjusted EBITDA for 9M 2024 was €82.1M (−1.3% YoY); Q3 2024 adjusted EBITDA was €31M (+21% YoY).

• EBIT margin for 9M 2024 was 7.5%, with EBIT at €48.4M (−18% YoY); Q3 2024 EBIT was €18.4M (+7.7% YoY).

• Net profit for 9M 2024 was €21.6M, down from €30.5M in 9M 2023, impacted by unrealized forex losses.

• Net financial debt rose to €214M as of September 30, 2024 (1.9x net leverage), mainly due to capex, working capital, buybacks, and dividends.

• Capex for 9M 2024 was €71.4M, mainly for EV & Automotive expansion, with full-year expected at €80M–€96M.

Outlook and guidance

• 2024 guidance: revenues ~€900M, EBITDA ~€120M, capex ~€80M–€96M, net trade working capital ~€200M.

• Mid-term growth targets (2024–2026) reaffirmed, with CAGR for revenues and EBITDA expected between 24% and 27%.

• 2025 expected at the lower end of the medium-term growth range, with Industrial business in mid- to low-single-digit growth.

• Quarterly sequential improvement expected in 2025, with 10 new SOPs (6 in H1, 4 in H2).