Gestamp posts €5.84bn revenue for H1 2025
Gestamp, an automotive component manufacturer, has reported a significant reduction in net debt and an increase in profitability for the first half (H1) of 2025.
Despite the challenges posed by currency fluctuations and market volatility, the company says it has managed to achieve its lowest net debt level in the first semester since the implementation of International Financial Reporting Standard 16 (IFRS 16), standing at €2.14bn.
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This has resulted in a leverage ratio of 1.7x net debt to EBITDA, marking a significant milestone for the company.
Gestamp has closed the H1 2025 with revenues of €5.84bn, impacted by the downturn in light vehicle production in prime markets and adverse currency impacts.
The first half of the year saw light vehicle production volumes rise by 3.7% year-on-year (YoY), largely driven by the Asian market.
However, this growth was offset by a notable decrease in production in Europe and the North American Free Trade Agreement (NAFTA) regions.
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By GlobalDataThe EBITDA for the Q2 stood at €343m, excluding the Phoenix Plan impact, with an EBITDA margin of 12%, representing the company’s “second-best” H1 result since its IPO.
Gestamp’s strategic initiatives have enabled it to generate a positive cash flow of €182m in the second quarter (Q2), culminating in a €99m positive free cash flow for the H1 of the year, excluding the impact of the Phoenix Plan.
The company has maintained and enhanced profitability through short-term measures, such as flexibility and cost control plans, for ensuring efficiency.
A key focus for Gestamp is the execution of the Phoenix Plan in the NAFTA region.
Despite reduced light vehicle production volumes, the plan is progressing as anticipated, achieving an EBITDA margin of 7.1% by the end of the H1 of the year, once again excluding the Phoenix Plan impact, according to the company.
Gestamp’s strategic goal is to reach an EBITDA margin of around 8% by the end of this year, aiming to match profitability levels across all regions where it operates.
The company has reiterated its guidance for the year, expressing confidence in maintaining automotive business profitability and generating free cash flow consistent with the figures from last year, despite a climate of high uncertainty and limited market growth.
Gestamp executive chairman Francisco J Riberas said: “In a particularly challenging environment for the sector, our focus remains on preserving our leading position within an industry undergoing a fast and in-depth transformation, while reinforcing the strength of our balance sheet and improving profitability.
“The efficiency and cost control measures are reflected in the results achieved, and with a strong free cash flow generation in the semester, we consolidate a strong financial profile”.
In a move to further bolster its balance sheet, Gestamp has entered into an agreement with Santander Bank.
Through Andromeda Principal Investments, S.L.U, the bank will invest €245.5m for a minority stake in the share capital of four Gestamp Group firms that hold the Spanish real estate assets.
This transaction, set for September, is said to be executed via the subscription of a capital increase in each firm and the preferred shares’ issuance.
Gestamp will retain full control of the assets for its industrial operations in Spain.
Gestamp noted that this strategic agreement is expected to decrease the net debt further, potentially leading to a leverage of 1.5x net debt to EBITDA Pro Forma for June 2025, aligning with commitments made during the Capital Market Days in 2023.
In Q1 2023, Gestamp said it achieved a revenue of €3,144m, up 39.4% YoY, including a €163m contribution from Gescrap.
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