Superior Industries International (SUP) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were $322M, nearly flat year-over-year, with value-added sales at $171M.

• Net loss improved to $24.8M from $86.3M in Q3 2023, mainly due to the absence of prior year deconsolidation charges.

• Adjusted EBITDA rose to $41M (24% margin), up from $39M (22% margin) year-over-year, reflecting improved operational performance.

• Completed $520M debt refinancing, reducing total debt by $117M, extending maturities to 2028, and strengthening the balance sheet.

• Announced a global restructuring targeting $10–$15M in annualized savings, with a Q4 charge of $9.5M.

Financial highlights

• Q3 2024 gross profit was $29M (8.9% margin), up from $25M (7.8%) in Q3 2023 due to lower conversion costs.

• SG&A expenses rose to $24M from $17M, mainly from refinancing and restructuring costs.

• Unlevered free cash flow was $9M, down $3M year-over-year due to higher working capital.

• Cash at quarter end was $24M.

• Net debt at quarter-end was $497M, up from $436M at 12/31/23 due to refinancing.

Outlook and guidance

• Full-year 2024 net sales outlook lowered to $1.25–$1.33B, value-added sales to $680–$700M, and adjusted EBITDA to $146–$154M.

• Unlevered free cash flow expected at $50–$80M; capex reduced to ~$35M.

• Margin levels expected to remain strong, with further improvements anticipated in 2025 as restructuring benefits are realized.

• Guidance reflects softer customer production and focus on cost alignment and liquidity.

• Industry production for H2 2024 expected to be down 6% per IHS; restructuring actions underway to reduce SG&A and manufacturing by 15%.