Accelleron FY 2024 Results

Strong 2024 Performance & Positive Outlook for 2025

• Revenue Growth: +11.8% to $1.02 billion (organic +7.3%, currency-adjusted +12.9%)
• Key Drivers:
  • Strong demand in the marine industry and backup power solutions for data centers
  • Successful capacity expansion of the fuel injection systems plant in Turin (OMT)
  • Solid service orders supporting overall growth
  • Temporary weakness in the U.S. gas compression business was offset by high demand in other areas

Profitability & Earnings

• Operating EBITA: +17.4% to $261.9 million, margin increased by 120 basis points to 25.6%
  • This was 60 basis points above consensus expectations
• Net profit: +63% to $179.4 million
  • Main contributor: Strong revenue growth and a significant reduction in one-off costs from the ABB spin-off
  • One-off costs dropped from $77.4 million (previous year) to only $15.8 million in FY24
• Segment Margins:
  • Medium & Low Speed (76% of revenue): EBITA margin up from 24.6% to 25.7% (smooth OMT integration)
  • High Speed (24% of revenue): EBITA margin up from 23.7% to 25.2%, benefiting from cost control and a favorable product mix
• Cash Flow: Strong free cash flow conversion of 99.1% (previous year: 99.2%)
• Dividend: Proposed increase to CHF 1.25 per share (+40 Rappen)

Segment Performance

• Medium & Low Speed: Organic revenue growth of 10% to $773.5 million, driven by strong demand for freight capacity and service business
• High Speed: Revenue remained stable at $249 million
  • Growth in turbocharged backup power systems compensated for weakness in the gas compression sector

Outlook for 2025

• Revenue Growth Expectation: Currency-adjusted +4% to 6%
• Operating EBITA Margin: Expected in the 25–26% range
• Dividend Outlook: CHF 1.25 per share aligned with AWP consensus