Gestamp posted weaker net revenue and Ebitda in the third quarter. Amid high uncertainty and limited market growth in the automotive sector, the Spanish firm has made an update to its guidance for the end of 2025.
Gestamp anticipates a slight improvement in automotive business profitability compared with 2024. The supplier of components to the global automotive sector expects to generate free cash flow of €134 million ($154m), in line with 2024, and to improve its year-end leverage ratio to 1.6x net debt to Ebitda, it says in its latest report monitored by Kallanish.
“We are facing a complex market environment driven by regulatory uncertainties and volatility in production volumes,” says Gestamp chief executive Francisco Riberas. “Our focus is to maintain and strengthen our capital structure in an industry undergoing a profound transformation, improving profitability through rigorous operational efficiency and strict cost control, while optimising indebtedness to strengthen our balance sheet.”
Gestamp’s Q3 net revenue totalled €2.64 billion, down from €$2.78 billion in the same period last year.
The company saw third-quarter revenue improve solely in North America (+2% y-o-y) to €581 million and Eastern Europe (+7.5%) to €419.1m. In western Europe, Asia, and the South American (Mercosur) market, it was down by 7.4%, 13.7% and 16.5%, respectively, to €883.6m, €434.7m and €210.1m.
Gestamp’s nine-month net revenue totalled €8.48 billion, down 4.9% compared with €8.92 billion in January-September 2024.
Ebitda in Q3 reached €283.9m, down 3.3% on-year. Year-to-date through September, earnings before taxes were 1.1% weaker at €925.1m.
Todor Kirkov Bulgaria
