Sogefi (SGF) Q2 2025 earnings summary

Executive summary

• Revenues for H1 2025 were €508.6 million, down 3.0% year-over-year, mainly due to weak European and North American markets and adverse exchange rates.

• EBITDA increased to €69.5 million (13.7% margin), up from €67.0 million (12.8%) in H1 2024.

• EBIT rose to €32.7 million (6.4% margin) from €27.8 million (5.3%) in H1 2024.

• Net profit from operating activities increased to €19.8 million, nearly doubling year-over-year, aided by lower financial expenses.

• Free cash flow from continuing operations was €15.2 million, down from €20.7 million in H1 2024 due to prior year non-recurring positive cash flows.

Financial highlights

• Contribution margin improved to 30.0% from 29.0% year-over-year.

• Financial expenses dropped to €5.7 million from €9.1 million, reflecting lower debt.

• Tax charges were €7.2 million, down from €8.0 million, due to non-recurring tax charges in 2024.

• Factoring usage remained stable at €54.6 million.

• Free cash flow margin declined due to higher capex and lower working capital benefits.

Outlook and guidance

• Management expects a mid-single digit revenue decline for 2025, with a slightly higher EBIT margin than 2024, excluding non-recurring items.

• Forecasts do not include potential impacts from ongoing trade tensions and tariffs, which remain highly uncertain.

• Global car production for 2025 is projected to rise 0.4%, with declines in Europe and NAFTA and growth in China, India, and South America.

• Free cash flow guidance remains €15–18 million for the year, excluding dividend distribution.

• Guidance includes restructuring costs, which were minimal in the first half.