Draft Financial Statements for 2024 Approved by the Board of Directors

2024 consolidated revenues at 736.6 million Euros, a 12,96% decrease compared to 846.3 million Euros as at 31.12.2023.

Consolidated EBITDA equals to 80.2 million Euros (10.9% of revenues) showing an improvement in percentage terms and a slight decrease of 1.1% compared to 81.1 million Euros (9.6% of revenues) as at 31.12.2023; adjusted EBITDA, net of events not related to ordinary operations, equal to 81.5 million Euros (11.1% of revenues). 

Consolidated EBIT equals to 53.2 million Euros (7.2% of revenues) showing an improvement in percentage terms, although it decreased by 2.7% from 54.7 million Euros (6.5% of revenues) as at 31.12.2023; adjusted EBIT, net of events not related to ordinary operations, equal to 54.5 million Euros (7.4% of revenues). 

Consolidated net profit strongly positive at €13.1 million (1.8% of revenues), compared to a profit of €19.1 million (2.3% of revenues) as at 31.12.2023; net of events not related to ordinary operations and after related tax effects, adjusted net profit amounts to €14 million (1.9% of revenues).

Consolidated net financial position of operations as of 31.12.2024, negative at 131.4 million Euros, significantly improved from 238.6 million Euros as at 30.06.2024, and also from 234.5 million Euros as at 31.12.2023, thanks to the listing of the Indian Subsidiary on the Mumbai Stock Exchange. The stake held in the Indian subsidiary has decreased by approximately 31.2%.

"We are pleased with the results achieved in 2024, despite a significant downturn in our target markets. – a commented Enrico Carraro, Group Chairman – Thanks to our commercial strategy, the launch of new business initiatives, and investments in process and product technological development, we have managed to achieve our goal: improving profitability, with EBITDA growing both in absolute value and percentage terms. This is a significant result, demonstrating the effectiveness of the actions taken in recent years, during which we have focused on innovation to ensure increasingly efficient development of our production platform". 

"The first part of 2025 is still characterized by a challenging context, making it necessary to maintain a strong focus on supporting the Group's profitability. – added Enrico Carraro – In the second half of the year, we will benefit from important phase-ins of new products that could generate a recovery in volumes, factors that should allow us to close the year with revenue growth compared to 2024. We believe that any new protectionist dynamics, which are not yet defined, should not have a significant impact on the current year's results".

Analysis of consolidated economic and financial data of 2024 

After a first half of the year in which the effects on Western markets were offset by the growth of new businesses (Automotive Axles and eTruck) and the excellent performance of Asian markets, the second half of 2024 saw a sharp decline in volumes. This was due to the downward revision of sales forecasts by our main European and North American customers in both the agricultural and earthmoving sectors.

The sudden production stoppage at our plant dedicated to INEOS Grenadier off-road axles, which had been fully aligned with forecasts in the first part of the year, was caused by an unforeseen interruption in our customer's supply chain. This had a negative impact on our activity levels, also affecting our suppliers. The decline in volumes was partially offset by the excellent performance of our business in China. At the EBITDA level, the negative impact of volumes was mitigated by actions to reduce product and structural costs, relocation of supplies, negotiations with suppliers, and general streamlining of production processes, thanks to investments made in recent years.

The listing of the Group's Indian subsidiary in December 2024 deserves special mention.

On 30 December 2024, Carraro India Pvt was listed on the Mumbai Stock Exchange with the sale of 17,755,681 shares for a value of 140,639 thousand Euros. The stake held in the Indian subsidiary decreased by approximately 31.2%.

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