EQS-News: SAF-HOLLAND SE: Strong performance in a challenging market environment - adjusted EBIT margin and operating free cash flow at record levels

• Group sales amounted to EUR 1,876.7 million (previous year: EUR 2,106.2 million)
• Adjusted EBIT margin at record level of 10.1% (previous year 9.6%)
• Result for the period of EUR 78.2 million almost at the previous year's level (EUR 80.5 million) despite a significant sales decline
• Operating free cash flow peaks at EUR 146.5 million (previous year: EUR 142.7 million)
• Unchanged dividend of EUR 0.85 per share proposed
• Management Board contract with Frank Lorenz-Dietz (CFO) extended until the end of 2028

Bessenbach, March 20, 2025. SAF-HOLLAND SE ("SAF-HOLLAND"), one of the world's leading suppliers of trailer and truck components, has today published its Annual Report 2024 with the final, audited financial figures for the fiscal year 2024.

Share of sales from the cyclically resilient aftermarket business reaches 37.9% (previous year 31.2%)

The Company recorded a 10.9% sales decline to EUR 1,876.7 million (previous year: EUR 2,106.2 million) due to weak customer demand in the Original Equipment segment, particularly in the EMEA and Americas regions. The sales contribution of the Original Equipment Trailer customer segment fell by 21.0% to EUR 915.6 million (previous year: EUR 1,158.6 million). This corresponds to 48.8% of Group sales (previous year 55.1%). Sales in the Original Equipment Trucks customer segment fell by 13.9% to EUR 249.2 million (previous year: EUR 289.4 million), which is attributable in particular to the Americas and EMEA regions.

In contrast, the more cyclically resilient aftermarket business was able to significantly improve its sales share from 31.2% to 37.9%. The EUR 53.8 million sales increase to EUR 711.9 million (previous year: EUR 658.1 million) was the result of both organic growth, partly due to the strong growth of the original equipment business in previous periods, and acquisition effects (in particular Haldex).

In organic terms – i.e. excluding the impact of exchange rate and acquisition effects – Group sales decreased by EUR 326.8 million or 15.5% in the fiscal year 2024.

Adjusted EBIT margin improved to 10.1%

Adjusted EBIT fell by just 5.7% to EUR 190.5 million in fiscal year 2024 despite the 10.9% sales decline. The adjusted EBIT margin improved accordingly from 9.6% to 10.1%. The basis for this was the consistent cost adjustment in the original equipment business, the advantageous product mix with a higher share of the aftermarket business and the consistent continued realization of synergies from the Haldex integration.

Result for the period only just below the previous year's level – unchanged dividend of EUR 0.85 proposed

Taking into account a financial result of EUR -41.3 million (previous year: EUR -42.1 million) and a Group tax rate of 34.9% (previous year: 33.8%), SAF-HOLLAND generated a result for the period of EUR 78.2 million in fiscal year 2024 (previous year: EUR 80.5 million). The result for the period attributable to the shareholders of the parent company amounted to EUR 77.3 million (previous year: EUR 79.9 million). Based on an unchanged number of shares compared to the previous year of 45.4 million, this resulted in earnings per share of EUR 1.70 for fiscal year 2024 (previous year: EUR 1.76).

At EUR 110.1 million, the adjusted result for the period after minority interests, which was adjusted for special effects outside the ordinary business activities of SAF-HOLLAND, was 7.1% below the previous year's figure of EUR 118.5 million. Adjusted earnings per share thus amounted to EUR 2.43 (previous year: EUR 2.61).

The Supervisory Board and Management Board of SAF-HOLLAND SE will propose an unchanged dividend of EUR 0.85 per share fiscal year 2024 to the Annual General Meeting to be held on May 20, 2025. This corresponds to a payout ratio of 49.9% of the net result attributable to the shareholders of the parent company and is thus at the upper end of the range of 40% to 50% defined in the dividend policy. Based on the Xetra year-end closing price of EUR 14.78, this corresponds to a dividend yield of 5.8%.

Operating free cash flow reaches record level of EUR 146.5 million

At EUR 146.5 million, operating free cash flow reached a record level (previous year: EUR 142.7 million). This was due to the strong operating performance and a significantly improved net cash inflow from the change in net working capital of EUR 29.5 million (previous year: EUR +1.7 million). Taking into account future growth potential and in line with the lower sales level, investments in property, plant and equipment and intangible assets totaled EUR 57.4 million (previous year: EUR 61.7 million), corresponding to an investment ratio of 3.1%.

"With an operating free cash flow of EUR 146.5 million (previous year: EUR 142.7 million), an absolute record, we have impressively demonstrated our ability to create value for our stakeholders and to finance future growth," says Frank Lorenz-Dietz, Member of the Management Board and CFO of SAF-HOLLAND SE.

Frank Lorenz-Dietz's Management Board contract extended until the end of 2028

The Supervisory Board of SAF-HOLLAND SE has extended the appointment of CFO Frank Lorenz Dietz by an additional three years until December 31, 2028.

"The extension of the contract with Mr. Lorenz-Dietz underscores how convinced the Supervisory Board is that the current Management Board team is optimally positioned for the future," explains Dr. Martin Kleinschmitt, Chairman of the Supervisory Board of SAF-HOLLAND SE. "At the same time, this expresses that we not only greatly appreciate Mr. Lorenz-Dietz's contributions to date but are also convinced that he will continue to provide significant impetus for the profitable growth of the Company in the future."

Outlook for fiscal year 2025

In the core markets of EMEA and North America, the Management Board of SAF-HOLLAND SE anticipates that the trailer and truck markets will remain weak in the first half of 2025 and that a recovery will begin in the second half of the year. Growth is expected in the APAC region, driven in particular by the Indian market. According to current estimates the aftermarket business is expected to remain stable. This is based on the continuous increase in market penetration with SAF-HOLLAND original equipment products in previous years as well as the robust growth, organic growth of the aftermarket business in fiscal year 2024.

Overall, based on stable exchange rates, the Management Board expects consolidated sales in the range of EUR 1,850 million to EUR 2,000 million for fiscal year 2025 (previous year: EUR 1,876.7 million). This includes positive acquisition-related sales contributions of around EUR 25 million.

For 2025, SAF-HOLLAND expects an adjusted EBIT margin in the range of 9% to 10% (previous year: 10.1%). The Management Board assumes that the stable aftermarket business will continue to have a positive impact on profitability. On the other hand, inflation-related cost increases and higher wage and freight costs are expected to have a negative impact, which will probably not be offset to the same extent as in the past fiscal year by efficiency and cost-cutting measures. In addition, SAF-HOLLAND expects a lower capitalization rate at roughly the same costs as in the previous year in the course of the SAP S/4HANA implementation.

In order to achieve the medium and long-term growth targets and position the Company for the future in terms of products, capex up to 3% of Group sales are planned for fiscal year 2025 (previous year: 3.1%)

Alexander Geis, Chairman of the Management Board and CEO of SAF-HOLLAND SE, says: "In the past financial year, we achieved a new record adjusted EBIT margin in a challenging market environment thanks to the resilience of our business model. The fiscal year 2025 will also present a variety of challenges. However, I am confident that we will have a successful year even without tailwinds from the markets."

Financial key figures for the fiscal year 2024

Contact:

Dana Unger      

VP Investor Relations, Corporate & ESG Communications

Tel: +49 6095 301 949

dana.unger@safholland.de

Alexander Pöschl 

Senior Manager Investor Relations, Corporate & ESG Communications

Tel: +49 6095 301 117

alexander.poeschl@safholland.de

Michael Schickling

Senior Manager Investor Relations, Corporate & ESG Communications

Tel: +49 6095 301 617

michael.schickling@safholland.de

About SAF-HOLLAND

SAF-HOLLAND SE is a leading international manufacturer of chassis-related assemblies and components for trailers, trucks and buses. An average of around 5,700 dedicated employees worldwide generated sales of EUR 1,877 million in 2024.

The product range includes axle and suspension systems for trailers as well as fifth wheels and coupling systems for trucks, trailers, and semi-trailers as well as brake and EBS systems. In addition, SAF-HOLLAND also develops innovative products to increase the efficiency, safety, and environmental friendliness of commercial vehicles. With the brands SAF, Holland, Haldex, Assali Stefen, KLL, Neway, Tecma, V.Orlandi and York, the Group achieved strong market positions in the top three positions in the most important regions worldwide in 2024.

SAF-HOLLAND supplies manufacturers in the original equipment market on six continents. In the aftermarket business, the company supplies spare parts to manufacturers’ service networks and wholesalers as well as to end customers and service centers via an extensive global distribution network.

SAF-HOLLAND SE is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX (ISIN: DE000SAFH001). Further information is available at www.safholland.com.