Fuchs (FPE3) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024 with EBIT of €434 million, up 5% year-over-year, and a 10% increase in earnings per share, despite challenging economic conditions.

• All regions contributed to earnings growth, with notable strength in EMEA, China, India, Australia, and Mexico.

• Continued focus on specialty and automotive aftermarket segments, supported by successful acquisitions and operational efficiency.

• Announced leadership changes, with new CFO and CTO transitions planned and smooth handover processes in place.

• Dividend increase proposed for the 23rd consecutive year, with a 5% rise to €1.17 per preference share.

Financial highlights

• Sales remained flat year-over-year at €3,525 million, with volume growth offsetting negative price adjustments and FX impacts.

• EBIT reached an all-time high of €434 million, with margin improving from 11.7% to 12.3%.

• Earnings per share rose 10% to €2.30 per preference share, aided by the share buyback program.

• Free cash flow conversion at 1.0, with over 100% of net profit converted to cash; free cash flow before acquisitions at €306 million.

• Capex remained stable at €80 million; net working capital slightly higher due to inventory buildup for new contracts.

Outlook and guidance

• Guiding for record sales of around €3.7 billion and EBIT of €460 million in 2025.

• Free cash flow expected at an 80% cash conversion rate; FCF before acquisitions targeted at €260 million.

• 23rd consecutive dividend increase proposed, up 5-6% per share class.

• Confident in growth plans but cautious due to ongoing macroeconomic and geopolitical uncertainties.

• Sales growth expected to be 5%, mainly volume-driven with stable prices.