Eurogroup Laminations (EGLA) Q4 2024 earnings summary

Executive summary

• FY2024 delivered robust results with revenues rising 4% to €869 million, driven by strong EV & Automotive growth, especially in China, offsetting industrial declines and weak European demand.

• Market share increased in North America and Europe, with strategic expansion in Asia through the acquisition of Kumar Precision Stampings in India and increased stakes in Chinese JVs.

• Group profitability remained resilient despite higher depreciation and industrial headwinds.

• Net financial debt rose due to investments, acquisitions, and share buybacks.

• Proposed dividend of €0.042 per share, unchanged from the prior year.

Financial highlights

• FY2024 revenues reached €869 million (+4% YoY); adjusted EBITDA was €116 million (13.3% margin); EBIT was €66 million, impacted by higher D&A.

• Net working capital stood at €233 million, mainly from inventory buildup for new projects.

• Capex totaled €86.5 million, with over 80% allocated to EV & Automotive; net debt was €226 million, leverage ratio at 1.9x adjusted EBITDA.

• EV & Automotive revenues grew 18% to €562 million, now 65% of total revenues; Industrial revenues declined 14% to €307 million.

• Sold 3.8 million motor cores in 2024, increasing market share in Europe and North America.

Outlook and guidance

• 2025 guidance targets ~10% revenue growth, 12% adjusted EBITDA margin, and positive operating free cash flow.

• Strategic Plan 2025-2028 aims for 10-15% annual revenue growth, 13-14% EBITDA margin, and 15-20% ROCE by 2028.

• Capex for 2025 set at €70 million, with future capex intensity at 4-5% of revenues.

• Net working capital targeted below €200 million, mainly via inventory optimization.

• 2025 motor core sales expected to exceed 5.5 million units.