Eberspaecher’s operating results up despite revenue decline

Despite a challenging 2024 financial year and decreasing revenues in all divisions, the Eberspaecher Group said it is successfully continuing its transformation – opening up new business areas with significant operational improvement and a clear focus on manufacturing excellence.

Source: Eberspaecher Group

Headquartered in Esslingen am Neckar, Germany, the company produces solutions in exhaust technology, automotive electronics and thermal management for a range of vehicle types across the global market. It is also active in future technologies such as mobile and stationary fuel cell applications, synthetic fuels as well as the use of hydrogen as an energy carrier.

The company reported it was negatively impacted in the 2024 financial year by global uncertainties and the slowdown in international industrial production, particularly in the second half of 2024. This affected all divisions. E-mobility products also experienced significantly lower call-offs than expected.

The consolidated revenue of the Eberspaecher Group decreased by 16.0% to EUR 5,333.2 million (prior year: EUR 6,349.0 million). Adjusted net revenue decreased by 9.0% to EUR 2,731.7 million. The company attributed this development to changes in the product mix and thus a lower proportion of transitory items and lower precious metal prices.

The purely operating result adjusted for extraordinary items and one-off expenses in connection with the transformation amounted to EUR 114.1 million (prior year: EUR 58.0 million). The operating result for the year increased significantly despite the drop in revenue. The company said cost-cutting and restructuring measures as well as the consistent focus on manufacturing excellence at its global plants were a couple of key factors that contributed to this increase.

Eberspaecher Group headquarters in Esslingen. (Photo: Eberspaecher Group)

“We are continuing to pursue our course of technological openness,” said Martin Peters, managing partner at Eberspaecher Group. “We are essentially a technology provider, and we transfer existing expertise to new business areas, including outside the automotive industry. This opens up opportunities for long-term success in changing market conditions.”

Such opportunities include the company’s hydrogen activities. In order to increase the availability of hydrogen, Purem by Eberspaecher developed a concept for the industrial production of high-temperature electrolyzers as part of a strategic partnership with Topsoe. The Group’s exhaust and acoustics specialist delivered the first two 4-ton units to the Danish technology company at the beginning of June.

Because the current financial year remains challenging due to the high volatility in the markets, Peters said the focus going forward is on maximum flexibility in the company’s actions and improving efficiency and competitiveness in its core business.