Autoneum Reports Strong Free Cash Flow, But 2026 Guidance Disappoints

Investing.com – Swiss automotive parts supplier Autoneum Holding AG (SIX:AUTN) announced its full-year 2025 results on Thursday, with strong free cash flow performance but guidance for 2026 below market expectations.

The company reported EBITDA of CHF 132 million and EBIT of CHF 65 million for the second half of 2025, in line with the market consensus of CHF 65.4 million. For the full year, Autoneum achieved an EBIT margin of 5.5%, surpassing its “well above 5%” target.

Net profit before minority interests for the second half reached CHF 39.5 million, slightly above the market consensus of CHF 37.2 million.

Pre-acquisition free cash flow was CHF 121 million, exceeding the company’s guidance of “over CHF 100 million” and also surpassing the market expectation of CHF 112 million.

However, net debt, including leases, increased from CHF 399 million in 2024 to CHF 413 million, resulting in a net debt-to-EBITDA ratio of 1.60x, above the company’s mid-term target of 1.5x.

This increase was due to CHF 54 million in acquisition-related cash outflows and CHF 21 million in working capital changes.

The board proposed a dividend of CHF 3.20 per share, higher than the market consensus of CHF 3.08.

From a business segment perspective, Europe performed better than expected, with second-half EBIT of CHF 31 million, compared to the market expectation of CHF 25 million. Despite a decline in revenue, EBIT margin increased by 70 basis points year-over-year and by 200 basis points quarter-over-quarter.

North America reported EBIT of CHF 19 million, with a stable profit margin of 4.8%, roughly in line with expectations. Asia and the SAMEA region posted EBIT of CHF 14 million and CHF 7 million, respectively, below expectations.

For 2026, Autoneum issued guidance based on flat global vehicle production. The company expects sales of CHF 2.2 to CHF 2.4 billion, with the midpoint roughly flat compared to last year, and an EBIT margin of 5.5% to 6.0%, potentially up by as much as 50 basis points.

Free cash flow is expected to again exceed CHF 100 million.

This guidance implies EBIT of CHF 120 million to CHF 145 million, with the midpoint about 9% below the market consensus of CHF 146 million prior to the results announcement. The market consensus expects sales of CHF 2.415 billion and an EBIT margin of 6.0%.

Autoneum also lowered its mid-term sales target from CHF 3 billion to CHF 2.7 billion to reflect foreign exchange impacts, with other mid-term targets unchanged.

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