Sogefi (SGF) Q4 2024 earnings summary

Executive summary

• Completed the sale of the Filtration Business Unit for an enterprise value of €374 million, generating €327.5 million in cash and a net profit of €125.9 million from discontinued operations, significantly reducing group complexity and powertrain risk exposure.

• Net profit surged to €141.3 million in 2024, mainly due to the Filtration sale, with ongoing operations net income at €18.0 million, up from €6.4 million in 2023.

• Free cash flow reached €348.3 million, and net debt (excluding IFRS 16) dropped to €9.5 million from €200.7 million, after €136.7 million in dividends.

• Air and Cooling Business Unit advanced its EV transition, securing new contracts and developing innovative products for electric vehicles.

• Suspension Business Unit returned to profitability with improved margins despite lower volumes, confirming a turnaround trajectory.

Financial highlights

• FY 2024 revenues reached €1,022.3 million, down 1.7% year-over-year at current exchange rates, mainly due to market declines in Europe and North America.

• EBITDA rose 16.3% to €125.3 million (margin 12.3%), and EBIT increased to €45.7 million (margin 4.5%), both up from 2023.

• Net profit from continuing operations was €18 million, up from €6.4 million in 2023; total net profit reached €141.3 million including divestment gains.

• Free cash flow was €348.3 million, including €317.9 million from discontinued operations; normalized free cash flow estimated at €15 million.

• Net debt reduced to €9.5 million cash position at year-end 2024 (excluding IFRS 16), down from €200.7 million in 2023, after a €133 million dividend payment.

Outlook and guidance

• Revenue expected to decline mid-single digit in 2025, slightly more than the market, especially in early months due to European exposure.

• EBIT for 2025 forecasted to be similar or slightly higher than 2024, excluding non-recurring items.

• Free cash flow target for 2025 set at €15 million, with stable CapEx and working capital.

• Dividend proposal of €0.15 per share for 2024, totaling €17.9 million.