Q4 and Full Year results 2024
- FY 2024 revenue from continued operations reached EUR 301.5 million, a 2% decline compared to FY 2023 (EUR 309.0 million)
- Q4 2024 revenue from continued operations increased by 8% to EUR 76.0 million (Q4 2023: EUR 70.5 million)
- Normalized EBITDA for FY 2024 from continued operations decreased by 11%, totaling EUR 37.0 million (FY 2023: EUR 41.4 million)
- Q4 2024 normalized EBITDA from continued operations was EUR 7.5 million, a 5% decline from Q4 2023 (EUR 7.9 million)
- Cost reduction program delivering net EUR 9 million in annual savings is fully implemented as of 1 January 2025
Proposed dividend: EUR 0.45 per share; reflecting a 59% pay-out ratio of normalized full-year net profit before amortization (2023: EUR 0.45 per share)
Key figures
| Reported (in EUR million) | Q4 2024 | Q4 2023 | delta3 | FY 2024 | FY 2023 | delta3 | |
| Revenue | 76.0 | 70.5 | 8% | 301.5 | 309.0 | -2% | |
| EBITDA | 6.8 | 6.7 | 1% | 33.9 | 39.5 | -14% | |
| EBITA | 2.6 | 2.8 | -7% | 18.0 | 25.4 | -29% | |
| Net profit from continuing operations | (1.0) | 0.3 | NM | 6.1 | 11.8 | -48% | |
| Net profit from discontinued operations | (0.6) | (1.4) | NM | (10.6) | (1.9) | NM | |
| Net profit | (1.6) | (1.1) | NM | (4.5) | 9.9 | NM | |
| EBITDA as a % of revenue | 8.9% | 9.5% | 11.2% | 12.8% | |||
| EBITA as a % of revenue | 3.4% | 4.0% | 6.0% | 8.2% |
| Normalized (in EUR million)1 | Q4 2024 | Q4 2023 | delta3 | FY 2024 | FY 2023 | delta3 | |
| Revenue | 76.0 | 70.5 | 8% | 301.5 | 309.0 | -2% | |
| EBITDA | 7.5 | 7.9 | -5% | 37.0 | 41.4 | -11% | |
| EBITA | 3.3 | 4.0 | -18% | 21.1 | 27.3 | -23% | |
| Net profit before amortization from continuing operations | 2.0 | 1.4 | 43% | 11.5 | 15.3 | -25% | |
| Net profit before amortization from discontinued operations | (0.6) | (1.1) | NM | 0.3 | (1.4) | NM | |
| Net profit before amortization | 1.4 | 0.3 | 367% | 11.8 | 13.9 | -15% | |
| EBITDA as a % of revenue | 9.9% | 11.2% | 12.3% | 13.4% | |||
| EBITA as a % of revenue | 4.3% | 5.7% |
|
| 7.0% | 8.8% | |
| Return on invested capital2 (12 months rolling) |
|
|
|
| 12.0% | 13.5% |
1 Results from continuing operations normalized for costs and benefits outside the ordinary course of operations. The reconciliation of non IFRS financial measures can be found in Annex 6.
2 Invested capital excluding intangibles arising from acquisitions. 2023 is including discontinued operations.
3 NM: Not meaningful
Joep van Beurden, Kendrion CEO:
“It has been a pivotal year for Kendrion. We successfully executed the strategic decision to divest our automotive franchise in Europe and the US, which had been the cornerstone of our business for many years. This transition allowed us to simplify our organization and sharpen our focus. As part of this, we discontinued all investment and R&D in the remaining Automotive segment and streamlined several Group functions to align our overhead with our smaller, more focused operations. These actions delivered a net cost reduction of EUR 9 million, implemented by the end of the year. As of 1 January 2025, we are fully dedicated to selected, higher-growth, high-margin industrial markets. I am proud of our employees worldwide for successfully achieving our strategic repositioning as a pure-play Industrial company against the backdrop of ongoing economic challenges for our business groups.
Our Q4 2024 revenue from continued operations increased by 8%, driven entirely by our retained mobility operations. During the quarter, industrial revenue remained flat compared to Q4 2023, reflecting continued muted trading in Germany and China. To highlight the improved profitability of the Group following the Automotive divestment, it is insightful to compare the normalized net profit of our continued operations with that of the discontinued operations. For FY2024, the positive impact on our profitability has been significant.
Looking ahead to 2025, we expect the economic environment in the first half of the year to remain similar to 2024. The potential impact of anticipated US trade tariffs on the global economy adds uncertainty. However, we note that analysts see the recent election of a more business friendly German government as a positive. We are also experiencing the first signs of some re-stocking, especially in Europe. For Kendrion, our focus remains on improving our profitability by executing our plan to raise added value margin, particularly in Industrial Brakes, in China, and in the retained Mobility business. We will also maintain strict cost control. With the successful implementation of these initiatives, and assuming the current economic conditions persist, we are confident in achieving our financial target of at least 15% EBITDA from 2025 onwards. We are proposing an annual dividend over 2024 of EUR 0.45 per share, representing a pay-out of 59% of our normalized net profit before amortization.”
Progress on strategy
Kendrion is a global leader in innovative actuator solutions, dedicated to industrial markets with a strong focus on electrification, cleaner energy, and other high-potential sectors. We prioritize profitability over growth, targeting industrial market segments that align with our goal of achieving at least 15% EBITDA by the end of 2025. Our business is organized into two key groups: Industrial Brakes (IB) and Industrial Actuators and Controls (IAC). We leverage our deep expertise in valves, actuators, brakes, and control technology to deliver differentiated solutions for our customers. In IB, we are capitalizing on the growing market for electromotors and electrified solutions in sectors such as intralogistics, medical and collaborative robots, and wind power. Our IAC portfolio encompasses inductive heating systems, industrial locks, and beverage dispensing valves. Following the sale of our Automotive business to Solero Technologies, the remaining mobility activities, comprising the automotive electronics business and China Automotive, have been integrated into IAC. The financial results will be reported separately from our Industrial business under Other Business.
Considering the Q4 results, and the cost reductions achieved following the sale of Kendrion’s Automotive business, the company is focusing on two key initiatives to meet its targeted EBITDA for 2025: First, it aims to significantly improve the added value margin, with particular emphasis on IB, operations in China, and the retained automotive activities. Second, Kendrion continues to prioritize cost control by optimizing operational expenses. This is demonstrated by initiatives such as the decision to transition to a less complex and more cost-efficient cloud-based Enterprise Resource Planning (ERP) system. Detailed plans for both initiatives have been developed and are currently being executed.
Despite the sluggish global economy in 2024, Kendrion remains optimistic about the significant growth potential of its products, which play a vital role in driving global electrification and sustainable energy initiatives. Furthermore, Kendrion’s diverse product portfolio ensures reduced reliance on any single industry or market segment. The company’s local-for-local approach also mitigates the direct impact of potential trade tariffs imposed by the US government.
Financial and operational review
Revenue
Q4 2024
In the fourth quarter of 2024, revenue from ongoing operations reached EUR 76.0 million, reflecting an 8% increase compared to EUR 70.5 million in Q4 2023. Currency translation had no significant impact on revenue.
Revenue in IB grew by 7%, increasing from EUR 26.0 million in Q4 2023 to EUR 27.8 million in Q4 2024. While activity levels remain subdued, this increase signals a slight recovery, continuing the positive trend noted in Q3. Conversely, revenue in IAC fell by 7%, from EUR 29.7 million in Q4 2023 to EUR 27.7 million in Q4 2024. Persistent weakness in the German machine-building market contributed to this decline, and while other segments, such as medical and aircraft, showed strength, they were unable to fully offset the decrease. Revenue in the retained mobility segment (automotive electronics and China Automotive), showed robust growth, rising by 39% from EUR 14.8 million in Q4 2023 to EUR 20.5 million. This growth was entirely driven by operations in China, through the ramp-up of new projects and increasing customer demand.
Full Year 2024
In FY 2024, revenue from continuing operations totaled EUR 301.5 million, reflecting a 2% decline from EUR 309.0 million in FY 2023, with no significant impact from currency fluctuations.
Revenue in IB fell by 10% to EUR 116.5 million (FY 2023: EUR 129.0 million), primarily due to subdued trading activity in key markets. Similarly, IAC’s FY 2024 revenue saw a 5% decline in revenue, from EUR 127.5 million in FY2023 to EUR 121.7 million in FY 2024. Conversely, the retained mobility segment grew by 21%, increasing from EUR 52.5 million to EUR 63.3 million. This growth was driven by the successful ramp-up of new project wins in China.
Results
Q4 2024
In Q4 2024, the normalized operating result before depreciation and amortization (EBITDA) from continued operations totaled EUR 7.5 million, representing a 5% decline from EUR 7.9 million in Q4 2023. Profitability during the quarter was impacted by an unfavorable sales mix, with a lower share of revenues from IAC, and dyssynergies following the Automotive divestment. These inefficiencies are expected to be mitigated by cost savings taking effect in Q1 2025.
Depreciation charges from continued operations increased to EUR 4.2 million in Q4 2024, compared to EUR 3.9 million in Q4 2023. As a result, normalized EBITA from continued operations totaled EUR 3.3 million (Q4 2023: EUR 4.0 million), with a normalized EBITA margin of 4.3%, compared to 5.7% in the same period last year.
Operating costs of EUR 0.7 million were normalized in the Q4 results, including EUR 0.3 million for severance pay related to terminated employee contracts in both Industrial business groups. The remaining EUR 0.4 million related to impairment charges in China, linked to discontinued Automotive Sound projects.
Full Year 2024
Normalized EBITDA for FY 2024 came in at EUR 37.0 million, an 11% decline from EUR 41.4 million in FY 2023 reflecting the impact of lower revenues due to subdued global industrial production. Depreciation charges increased to EUR 15.9 million, up from EUR 14.1 million in the previous year, driven by the start of depreciation on new production lines and the newly established facility in China. Consequently, normalized EBITA was EUR 21.1 million, compared to EUR 27.3 million in FY 2023. Net finance expenses remained stable at EUR 6.0 million (FY 2023: EUR 6.1 million). Normalized tax expenses declined to EUR 2.7 million, from EUR 5.1 million in FY 2023. The effective tax rate improved to 22.9%, down from 28.3% in the previous year, which was adversely impacted by a lower valuation of carry forward tax losses in the US. Normalized net profit before amortization from continuing operations was EUR 11.8 million, compared to EUR 13.9 million in FY 2023. Reported loss amounted to EUR 4.5 million, versus EUR 9.9 million net profit in FY 2023.
Results from discontinued operations
The net result from discontinued operations in Q4 recorded a loss of EUR 0.6 million (Q4 2023: loss of EUR 1.1 million). For the full year, the net result from discontinued operations amounted to a loss of EUR 10.6 million, compared to a loss of EUR 1.9 million in FY 2023. The FY 2024 net loss includes EUR 2.8 million related to normal discontinued operations and a EUR 7.8 million loss on the disposal, including transaction costs and restructuring expenses.
The total net result, encompassing both continued and discontinued operations, ended with a loss of EUR 4.5 million (FY 2023: net profit of EUR 9.9 million). Excluding costs outside the ordinary course of operations, the total net result stood at EUR 9.4 million in FY 2024, compared to EUR 11.5 million in the previous year.
Financial position
At the end of Q4 2024, total net debt decreased to EUR 103.4 million, down from EUR 145.0 million at the close of Q4 2023. This reduction is primarily attributed to the sale of the Automotive division. We have a solid financial position and operate well within our financial covenants. The leverage ratio remained stable at 2.7 at the end of Q4 2024, but on a pro forma basis, would have been 2.4 when including the remaining EUR 7.9 million proceeds from the sale of the Automotive subsidiary in Romania, anticipated in Q1 2025.
Normalized free cash flow in 2024 was negative EUR 3.0 million (FY 2023: positive EUR 11.3 million). This result reflects EUR 12.1 million positive free cash flow from continued operations, offset by a negative EUR 15.1 million from discontinued Automotive activities. The negative cash flow from Automotive operations was largely driven by the discontinuation of a receivables factoring program prior to the sale and the timing of the divestment, which precluded the customary Q4 seasonal uplift to free cash flow from working capital reductions.
As of the end of 2024, Kendrion had EUR 73 million in available cash and unused credit lines. This amount accounts for an agreed reduction in credit facilities by EUR 27.5 million following the Automotive transaction.
Number of employees
At the end of Q4 2024, the total number of FTEs stood at 1,609, a reduction from 1,832 in the previous quarter and 2,753 at the close of Q4 2023. The decline in FTEs during Q4 primarily reflects the legal transfer of Kendrion’s Romanian subsidiary in Sibiu to Solero Technologies and the termination of the Automotive Sound & Electronics R&D activities later in the quarter. The total of 1,609 FTEs at the end of Q4 includes 83 temporary workers.
Dividend
Kendrion remains committed to providing an attractive return for its shareholders, aligned with the company's medium- and long-term strategy. The company aims to distribute an annual dividend of at least 50% of normalized net profit before amortization. Based on the financial performance in 2024 and strong business fundamentals, Kendrion proposes a dividend of 59% of the normalized net profit before amortization of EUR 11.8 million, totaling EUR 0.45 per share (FY 2023: EUR 0.45 per share).
Shareholders have the option to receive dividends in cash and/or shares. The conversion price for the stock dividend will be determined on 7 May 2025 (before market opening) based on the volume-weighted average share price of Kendrion shares traded on 29, 30 April 2025 and 2, 5 and 6 May 2025. Dividend payments in cash and the delivery of stock dividends are scheduled for 9 May 2025.
Outlook
We expect the economic conditions in the first half of 2025 to mirror those of 2024.. The recent election of a more business-friendly government in Germany along with China’s measures to stimulate its economy are positive developments, though the full effects of both remain uncertain. We are also experiencing the first signs of some re-stocking, especially in Europe. The potential impact of anticipated US trade tariffs on the global economy is yet to be determined. Kendrion’s strict operational local-for-local approach—where regional factories rely exclusively on regional suppliers and customers—limits the direct impact of those potential US tariffs on our business. However, the broader economic effects may still influence the company.
With our repositioning as a pure-play Industrial company focused on selected, high-growth, high-margin industrial markets, we are well-positioned to capitalize on an economic rebound when it occurs. Even in a persistently challenging economic environment, we remain confident in meeting our financial targets: achieving an EBITDA margin of 15-18% from 2025, an ROI of 23-27% by 2027, and delivering annual dividend payments of at least 50% of normalized net profit.
Alternative Performance Measures (APM)
Added value is a non-IFRS financial measure defined as total revenue and other income plus changes in inventory of finished goods and work in progress, less raw materials and subcontracted work. It reflects the group’s ability to generate a variable profit contribution on its revenue, sufficient to absorb total staff costs and other operating expenses.
EBITDA is a non-IFRS financial measure defined as profit for the period before income tax expense, finance income, finance expense, share of profit or loss of an associate, depreciation, and amortization. It measures the group’s ability to invest in the group’s operations and provide shareholder returns. Normalized EBITDA excludes items not related to the group’s normal course of business, including, but not limited to, restructuring and impairment charges.
EBITA is a non-IFRS financial measure defined as profit for the period before income tax expense, finance income, finance expense, share of profit or loss of an associate and amortization of other intangible fixed assets. It indicates a group’s ability to realize a positive return on the group’s operations and continue to provide shareholder returns. Normalized EBITA excludes items outside the group’s normal course of business, including but not limited to, restructuring and impairment charges.
ROI or Return on Investment is a non-IFRS financial measure defined as (normalized) EBITA divided by the sum of property, plant and equipment, intangible assets, other fixed assets, and net working capital, subtracted by the amount of goodwill and other intangible assets arising from business combinations. ROI is a measure that assesses the result from operations generated per currency equivalent that the group has invested in property, plant and equipment, and other net assets that are part of the group’s operations.
Normalized net profit before amortization is a non-IFRS measure defined as profit for the period before amortization, restructuring expenses, and other adjustments not related to the group’s ordinary course of business. Normalized net profit before amortization measures the group’s ability to realize a positive return on core operations and continue to provide shareholder returns, excluding any non-cash profit impact from amortizing intangibles arising from business combinations.
For a full reconciliation of normalized results to the most comparable IFRS performance measure, please refer to Annex 6 Reconciliation of non-IFRS financial measures on pages 13 and 14. A full reconciliation of all non-IFRS measures to the most comparable IFRS performance measure is included on pages 232-234 in the Annual Integrated Report.
Analysts’ meeting and audio webcast
Kendrion CEO Joep van Beurden and CFO Jeroen Hemmen will present the Q4 and full-year 2024 results to the analysts’ community today at 11:00 a.m. CET. The audio webcast will be available for viewing on the website. A recording will be accessible from 2:00 p.m. CET on www.kendrion.com.
Profile of Kendrion N.V.
Kendrion develops, manufactures and markets high-quality electromagnetic systems and components for industrial and automotive applications. For more than a century, we have been engineering precision parts for the world's leading innovators in industrial applications. As a leading technology pioneer, Kendrion invents, designs and manufactures complex components and customized systems and tailored local solutions on demand.
We are dedicated to tackling the engineering challenges of tomorrow. Responsibility for how we source, manufacture, and conduct business is embedded in our culture of innovation. Rooted in Germany, headquartered in the Netherlands and listed on the Amsterdam Stock Exchange, Kendrion's expertise extends across Europe, the Americas, and Asia. Created with passion and engineered with precision.
Amsterdam, 28 February 2025
The Executive Board
For more information, please contact:
Kendrion N.V.
Mr. Joep van Beurden
Chief Executive Officer
Tel: +31 6 82 56 85 65
Email: IR@kendrion.com
