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 increased to €48.5 million from €38 million, and net profit from ongoing operations nearly doubled to €29.9 million from €15.1 million year-over-year.

• EBITDA reached €103.1 million, up from €96.7 million, with margin improving to 13.8% from 12.6%.

• Free cash flow was €21.6 million, slightly above expectations and up from €19.4 million, despite higher investments in new products.

• 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

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

• Fixed costs decreased both in percentage and absolute value compared to 9M 2024.

• EBIT margin for the first nine months reached 7.0%, with full period margin at 6.5% (up from 5.0%).

• Financial expenses fell to €7.4 million from €11.7 million, reflecting lower debt.

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

Outlook and guidance

• 2025 revenue expected to decline low single digits at constant exchange rates.

• EBIT margin projected to grow slightly in percentage terms compared to 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.