OPmobility (OPM) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 2.1% year-over-year to €5,939 million (+3.5% like-for-like), with the US as the top contributor and strong momentum in Exterior and Modules segments.

• Operating margin increased 12% to €234 million (4.3% of revenue), driven by robust activity and cost control across all business groups.

• Net result, Group share, remained stable at €100 million (1.9% of revenue), offsetting higher financial expenses from increased interest rates.

• Free cash flow reached €157 million, up 14.6% year-over-year, supporting continued deleveraging and an interim dividend of €0.24 per share.

• Outperformed global automotive production by 3.8 points, with robust commercial momentum and major advances in hydrogen and lighting.

Financial highlights

• Consolidated revenue grew 2.3% to €5,413 million (+3.3% like-for-like), with a negative currency effect of €52 million.

• EBITDA was €471 million (8.7% of revenue), up from €463 million in H1 2023.

• Investments totaled €258 million (4.8% of revenue), in line with the Group's annual target.

• Net debt reduced to €1,491 million, with leverage at 1.6x EBITDA and liquidity of €2.3 billion.

• Free cash flow: €157 million, 2.9% of revenue.

Outlook and guidance

• 2024 full-year objectives confirmed: improvement expected in revenue, operating margin, net result, free cash flow, and net debt.

• Group aims to continue outperforming global automotive production and maintain financial discipline despite a forecasted decline in H2 2024 automotive production.

• Interim dividend of €0.24 per share declared, maintaining a payout ratio of 34.5%.

• Hydrogen revenue target for 2025 revised to €150 million due to customer delays, but long-term expectations unchanged.

• Expects H2 sales to be slightly lower than H1 due to seasonality, but still anticipates year-over-year growth.