EQS-News: SAF-HOLLAND SE: Preliminary results for fiscal year 2024 underline resilient business model

SAF-HOLLAND SE: Preliminary results for fiscal year 2024 underline resilient business model

• Group sales amounted to around EUR 1,877 million (previous year: EUR 2,106.2 million)
• Adjusted EBIT margin improved by 0.5 percentage points to 10.1%

Bessenbach, February 19, 2025. SAF-HOLLAND SE ("SAF-HOLLAND"), one of the world's leading suppliers of trailer and truck components, today published preliminary, as yet unaudited results for fiscal year 2024.

Share of sales from the cyclically resilient aftermarket business reaches almost 38% (previous year: 31.2%)

The company recorded a sales decline of almost 11% to around EUR 1,877 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 customer segment original equipment trailer fell by 21% to around EUR 916 million (previous year: EUR 1,158.6 million). This corresponds to approximately 49% of Group sales (previous year: 55.1%). Sales in the customer segment original equipment trucks fell by approximately 14% to around EUR 249 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 share of sales from 31.2% to almost 38%. The sales increase of around EUR 54 million to almost EUR 712 million (previous year: EUR 658.1 million) resulted both from organic growth, partly due to the strong growth of the original equipment business in previous periods, and from acquisition effects (in particular Haldex).

In organic terms – i.e. excluding the impact of exchange rate and acquisition effects – Group sales decreased by around EUR 327 million or around 16% in fiscal year 2024.

Adjusted EBIT margin improved to 10.1 % (previous year: 9.6 %)

Adjusted EBIT only decreased by 6% from EUR 202.1 million to around EUR 190 million in fiscal year 2024 despite the almost 11% decline in sales. Accordingly, the adjusted EBIT margin improved from 9.6% to 10.1%. The basis for this was the consistent cost adjustment in the original equipment business, the favorable product mix with a higher share of the aftermarket business and the consistent realization of synergies from the Haldex integration.

Alexander Geis, Chairman of the Management Board and Chief Executive Officer of SAF-HOLLAND SE, says: "Our rapid and consistent adjustment of cost structures to the lower sales and the strong focus on the service and aftermarket business contributed significantly to the pleasing development of the adjusted EBIT margin in the past fiscal year. We have thus shown that we are able to operate profitably even in a challenging market environment. Overall, we are very well positioned to reliably meet the needs of our customers within the market cycle and at the same time achieve EBIT margins that enable the long-term development of our business.”

EMEA region: adjusted EBIT margin improved to 8.7% (previous year: 7.7%)

With sales of almost EUR 883 million in fiscal year 2024, the EMEA region fell around 7% short of the previous year's figure of EUR 946.3 million. Adjusted for exchange rate and acquisition effects, sales in the region were around 13% below the previous year's figure, which was due in particular to a weak customer demand in the customer segment original equipment trailer.

Thanks to strict cost management, the continued realization of synergies from the Haldex integration and a significantly higher share of sales from the aftermarket business, the adjusted EBIT margin in the EMEA region increased from 7.7% to 8.7% in the reporting period, which corresponds to an adjusted EBIT of around EUR 77 million (previous year: EUR 73.1 million).

Americas region: further margin improvement from 10.9% to 11.3%

The Americas region recorded a sales decline of around 16% to approximately EUR 747 million in the fiscal year 2024 (previous year: EUR 890.3 million). Adjusted for exchange rate and acquisition effects, sales fell by almost 20%. This was due in particular to weak customer demand for trailer components throughout the year. The truck components business also suffered from a slowdown in customer demand from the middle of the year. The aftermarket business in the Americas region again developed robustly and even recorded growth, mainly due to the first-time consolidation of Haldex AB for the entire reporting period (previous year February 21 to December 31, 2023).

Adjusted EBIT in the Americas region decreased by only around 13% to around EUR 84 million in fiscal year 2024 (previous year: EUR 97.0 million). The adjusted EBIT margin nevertheless increased from 10.9% to 11.3%. This was due to the consistent cost adjustments in the original equipment business, the continued realization of synergies from the Haldex integration and the higher share of sales in the aftermarket business.

APAC region: Adjusted EBIT margin of 11.7% almost at the previous year's level

The APAC region generated sales of approximately EUR 247 million in fiscal year 2024 (previous year: EUR 269.5 million), which corresponds to a decline of around 8%. Sales development was temporarily negatively impacted by the severe restrictions on government spending for infrastructure programs in the context of and following the Indian parliamentary elections as well as monsoon-related sales shortfalls with the mining industry in the third quarter, resulting in an organic decline in sales of around 9% compared to the same period of the previous year.

Adjusted EBIT in the APAC region fell from EUR 31.9 million to around EUR 29 million in fiscal year 2024, which corresponds to an adjusted EBIT margin of 11.7% (previous year: 11.9%). This was due to the declining earnings contribution from the original equipment business, which could not be fully offset by the improved profitability in China and the robust development of the aftermarket business.

Investment volume adjusted to lower sales

Investments in property, plant and equipment and intangible assets (before effects from the acquisition of company shares) were adjusted to the lower level of sales in fiscal year 2024, taking future growth potential into account, and decreased significantly by around 7% to around EUR 57 million (previous year: EUR 61.7 million). The investment ratio was therefore around 3.1%, almost reaching the original forecast at the beginning of 2024. The investment focus in the course of 2024 was on the further automation of production processes in the EMEA and Americas regions as well as preparations for the new plant in Texas.

"Despite the market challenges, we have a very successful fiscal year behind us," says Frank Lorenz-Dietz, Member of the Management Board and CFO of SAF-HOLLAND SE, adding: "This is also underpinned by the results of the fourth quarter. Despite a sales decline of almost 18% to EUR 424 million, we succeeded in achieving an adjusted EBIT margin of 10.4%. With an adjusted EBIT margin of 10.1% for fiscal year 2024, we have once again exceeded the previous year's figure of 9.6% and set a new record at the same time."

SAF-HOLLAND will publish the final, audited figures with detailed information on the segments, the separate non-financial report, the outlook for fiscal year 2025 and the dividend proposal for fiscal year 2024 with the annual report on March 20, 2025.

The business figures in this press release are to be regarded as provisional due to the pending external audit and approval by the Supervisory Board.

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 approximately EUR 1.88 billion 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.