Sogefi (SGF) Q3 2025 earnings summary

Executive summary

• Revenues for the first nine months of 2025 were €744.9 million, stable at constant exchange rates and down 2.8% at current rates year-over-year, mainly due to a decline in Europe.

• EBIT rose to €48.5 million from €38.0 million, and net profit from ongoing operations nearly doubled to €29.9 million from €15.1 million year-over-year, driven by higher EBIT and lower financial expenses.

• EBITDA increased to €103.1 million (margin 13.8%) from €96.7 million (margin 12.6%) year-over-year.

• Free cash flow from continuing operations was €21.6 million, up from €19.4 million in the prior year, slightly above expectations due to CapEx savings.

• Net debt (excluding IFRS 16) was €13.9 million, up from €9.5 million at year-end 2024, after €17.9 million in dividend payments.

Financial highlights

• EBITDA margin improved to 13.8% from 12.6% year-over-year.

• EBIT margin increased to 6.5% from 5.0% year-over-year.

• Contribution margin improved to 30.0% from 29.3% year-over-year.

• Financial expenses fell to €7.4 million from €11.7 million year-over-year.

• Group net result was €28.1 million, down from €149.5 million in 2024, which included a large capital gain from a business sale.

Outlook and guidance

• Revenue expected to decline low-single digit at constant exchange rates for full year 2025.

• EBIT margin forecast to grow slightly versus 2024, barring non-recurring charges or new negative events.

• Free cash flow for the year expected between €10–15 million, aligning with historical levels.

• CapEx for 2025 to remain in the €75–80 million range, focused on Air and Cooling (especially cooling plates) and Suspension product development.

• Global car production projected to rise 2% in 2025, with declines in Europe and NAFTA but growth in China, India, and South America.