• Revenue Growth: Increased by 2.8% in 2024, outperforming the market by 4 points.
• Operating Margin: Grew by 11.4% compared to 2023, reaching EUR 440 million, up 11% year-over-year.
• Net Result Group Share: Improved by 4.2% despite rising financial expenses.
• Free Cash Flow: Increased by 8.3% compared to 2023, totaling EUR 246 million.
• Leverage Ratio: Stable at 1.7 times EBITDA.
• Dividend Proposal: EUR 0.60 per share, a 54% increase from the previous year.
• Regional Performance: Outperformed the market in Europe by 5 points and in North America by 10 points.
• Modules Revenue: Increased by 12%, reaching EUR 3 billion, driven by the Austin plant in Texas.
• Exterior Lighting Revenue: Decreased by 2% due to differing trends in exterior and lighting businesses.
• CapEx: Controlled at 4.8% of total revenue.
• Net Debt: EUR 1,577 million, with a stable leverage ratio.
• Order Book: Two-thirds of the order book outside Europe, indicating future growth potential.

• Warning! GuruFocus has detected 4 Warning Signs with STU:EZM.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• OPmobility (STU:EZM) achieved a revenue growth of 2.8% in 2024, outperforming the market by 4 percentage points.
• The company improved its operating margin by 11.4% and net results by 4.2% despite increasing interest rates.
• Free cash flow generation increased by 8.3% compared to 2023, highlighting strong financial management.
• OPmobility is on track to achieve carbon neutrality for Scope 1 and 2 emissions by 2025, with significant reductions in energy consumption.
• The company has a strong order book and successfully launched 159 new projects in 2024 without any major issues.

Negative Points

• The lighting business segment experienced a revenue decline of 24% in 2024 due to previous order intake issues.
• The market in Europe declined by 5% in 2024, impacting OPmobility's performance in its home region.
• The company faces challenges in China, underperforming the market due to diverse regional situations.
• There is uncertainty in the market due to regulatory changes and tariff discussions, which could impact future performance.
• The hydrogen business is delayed by approximately two years, affecting expected growth and investment plans.

Q & A Highlights

Q: Can you speak about the drivers of 2025 outperformance in terms of businesses and geography? Are we going to talk about mostly modules in North America in 2024 or is something else going to take the relay? A: Laurent Favre, CEO: Our target for 2025 is to improve all business groups compared to 2024. Modules should continue to grow, but we also expect growth from the exterior business group. Lighting should remain stable, and C-Power might see a slight decrease. Geographically, North America is expected to be the biggest growth driver.

Q: Could you give us an idea of the expected evolution of revenues and contribution to adjusted EBIT from lighting? A: Laurent Favre, CEO: Lighting had a difficult year in 2024 with a 24% sales decrease. We have worked on reducing the breakeven point by cutting headcount by 20%. We expect the first half of 2025 to remain weak, but anticipate growth in the second half. We aim for lighting to break even in 2026.

Q: What should we expect in terms of financial expenses, tax rates, and CapEx for 2025 as a proportion of revenues versus 2024? A: Laurent Favre, CEO: CapEx for 2025 is targeted to be around 5% of revenue, similar to 2024. Tax rates should be similar or slightly lower than in 2024. We aim to maintain a healthy free cash flow while managing costs effectively.

Q: Can you discuss the company's view on potential participation in industry consolidation? A: Laurent Favre, CEO: We do not intend to consolidate the market through acquisitions. Instead, we aim to consolidate by gaining market share and using our existing capacities. We focus on being a strong player for our customers, which naturally leads to market consolidation.

Q: How do you see the hydrogen market evolving, and what are your plans in this area? A: Laurent Favre, CEO: We believe hydrogen will play a significant role in EV mobility, especially for trucks and commercial vehicles. While the market is developing slower than expected, we continue to gain market share and adapt our investments. We are concentrating our production in France and delaying some capacity expansions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.