SAF-Holland (SFQ) H2 2024 earnings summary

Executive summary

• Consolidated sales for FY2024 reached EUR 1.88 billion, down 10.9%–11% year-over-year, with a record adjusted EBIT margin of 10.1% and adjusted EBITDA margin of 13.7%.

• Adjusted EPS was EUR 2.43; operating free cash flow rose to EUR 146.5 million.

• Aftermarket growth and acquisitions offset weak OE market demand, demonstrating business resilience.

• Haldex integration delivered synergies and margin improvements.

• A stable dividend of EUR 0.85 per share is proposed, with a payout ratio of 49.9%.

Financial highlights

• FY2024 sales were EUR 1,876.7 million, down 10.9% year-over-year; organic sales down 15.5%.

• Adjusted EBIT for FY2024 was EUR 119.5 million (10.1% margin); adjusted EBITDA was 2.3% below prior year.

• Aftermarket sales grew 8.2% year-over-year; acquisition-related sales contributed EUR 103.5 million.

• Net working capital ratio at 15.5%, within target corridor; equity ratio increased to 30.8%.

• Dividend yield of 5.8% based on year-end share price.

Outlook and guidance

• Group sales for FY2025 expected between EUR 1.85 billion and EUR 2 billion; adjusted EBIT margin guidance is 9%–10%.

• Aftermarket business expected to remain stable; APAC growth driven by Indian trailer market recovery.

• CapEx ratio to remain up to 3% of sales, with investments in automation and process efficiency.

• Net working capital ratio planned at 16.5%–18% for 2025.

• First half of 2025 expected to remain weak in EMEA and North America, with recovery anticipated in H2.