Gurit (GURN) Q4 2024 TU earnings summary

Executive summary

• Net sales for 2024 were CHF 431.7m, down 6.1% year-over-year (2.9% at constant rates), mainly due to lower wind materials sales.

• Strategic realignment focused on profitable wind markets, expanding marine and industrial segments, and strengthening OEM contracts.

• Accelerated non-wind growth with new product launches in PET and specialized foams, and reinforced sales/technical teams.

• Reorganized for sustainability, reducing divisions and restructuring corporate organization; CEO search ongoing.

Financial highlights

• Wind Materials net sales were CHF 285.6m, down 7.0% year-over-year (3.4% at constant rates).

• Manufacturing Solutions net sales were CHF 45.3m, down 11.8% year-over-year (8.7% at constant rates).

• Marine and Industrial net sales were CHF 101.2m, down 0.5% year-over-year (up 1.6% at constant rates).

• Adjusted operating profit margin for 2024 expected at the upper end of 6-7%, up from 4.5% in 2023.

• Positive cash flow achieved in 2024.

Outlook and guidance

• Right-sizing to be completed by Q2 2025; new financing to be finalized.

• Wind business expects slightly lower net sales but higher profitability; discontinued carbon fiber business to incur a mid-single digit loss in H1 2025.

• Growth anticipated in marine and industrial segments via substitution with lighter, eco-friendly materials.

• Manufacturing Solutions positioned for stronger performance in 2025 after a robust Q4 uptick in orders.

• Mid-term target of double-digit operating profit margin confirmed.