OC Oerlikon Corp AG, Pfaffikon (OERLF) Full Year 2024 Earnings Call Highlights: Navigating ...

In This Article:

  • Orders: CHF2.4 billion, stable year over year when adjusted for FX.

  • Sales: CHF2.4 billion, a decrease of 9% at constant exchange rates.

  • Operational EBITA: CHF393 million, with a margin of 16.6%.

  • Surface Solutions Sales: CHF1.5 billion, stable organically.

  • Polymer Processing Solutions Orders: CHF896 million, a 2% decrease at constant FX.

  • Polymer Processing Solutions Sales: CHF875 million, down 23% at constant FX.

  • Operating Free Cash Flow: CHF162 million, more than doubled year over year.

  • Return on Capital Employed (ROCE): 5.8% operational, 5.1% reported.

  • Net Debt to EBITDA Ratio: 2.8 times.

  • Cash Access: CHF920 million at the end of 2024.

  • Dividend Proposal: 20 rape per share, stable year over year.

  • 2025 Sales Guidance: Stable or low single-digit growth at constant FX.

  • 2025 Group Operational EBITDA Margin Guidance: Approximately 15.5%.

  • Surface Solutions 2025 EBITDA Margin Guidance: 18.5% to 19%.

  • Barmak Man-Made Fibers 2025 EBITDA Margin Guidance: Approximately 7.5%.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • OC Oerlikon Corp AG, Pfaffikon (OERLF) achieved an operational EBITA margin of 16.6% in 2024, representing a year-over-year increase despite lower sales.

  • The company successfully reached break-even in its additive manufacturing business in the fourth quarter of 2024.

  • OC Oerlikon Corp AG, Pfaffikon (OERLF) has reduced overhead expenses by 33% since 2019, demonstrating effective cost management.

  • The company has a strong global presence with operations in 37 countries and 110 service centers, enhancing its market reach.

  • OC Oerlikon Corp AG, Pfaffikon (OERLF) is focusing on sustainability, with over 80% of R&D spending directed towards sustainable products, and is recognized as a leader in sustainability within the industrial sector.

Negative Points

  • 2024 sales decreased by 9% at constant exchange rates, indicating challenges in maintaining revenue growth.

  • The polymer processing solutions division experienced a 23% decline in sales at constant exchange rates, reflecting market difficulties.

  • The company's return on capital employed (ROCE) is currently depressed at 5.8% operationally, impacted by the filament downturn.

  • OC Oerlikon Corp AG, Pfaffikon (OERLF) faces challenges in the automotive, tooling, and luxury markets, which have shown lower organic sales.

  • The company's net debt to EBITDA ratio increased to 2.8 times, indicating a higher leverage compared to the previous year.