Antolin, a global provider of automotive interior technology solutions, continued to improve margins during the first nine months of the year, amid an increasingly challenging and volatile market environment marked by a broad-based decline in automotive sales.
The company reported a 6.6% increase in EBITDA (earnings before interest, taxes, depreciation, and amortization), reaching €265.4 million, driven by enhanced efficiency and strict cost control measures implemented under its Transformation Plan. Operating profit (EBIT) rose by 25% to €88.3 million.
Sales fell by 10.2%, totaling €3.17 billion, reflecting heightened uncertainty in the automotive sector. Global vehicle production started the year sluggishly and has seen further declines as the months progressed. In the third quarter alone, global vehicle production dropped 4.9% year-over-year to 21.5 million units, according to S&P Mobility data.
In response to tightening market conditions, Antolin has revised its 2024 sales forecast downward to approximately €4.2 billion. Nonetheless, the company achieved further margin improvements in Q3, reinforcing its financial stability.
The EBITDA margin rose to 8.4%, an increase of 0.5 percentage points compared to the same period last year, marking progress toward the medium-term goal of achieving double-digit margins. Similarly, the EBIT margin grew to 2.7%, a 0.2 percentage point improvement.
Regional analysis
Regional revenue data showed the resilience of the Asian market, where sales were up 4% in the first nine months, to €589 million, led by growth in India. Sales in Europe and the rest of the world fell by 12% to €1,55 billion, impacted in Q3 by the sale of the Ebergassing plant and the conclusion of certain projects in the UK. In North America, sales dropped 14% to €1,04 billion due to reduced order volumes from key clients and the end of certain projects.
Looking ahead at 2025, Antolin expects activity in the U.S. to resume growth with the launch of new projects in the coming months.
Innovative technology solutions
As part of its Transformation Plan, Antolin has prioritized the delivery of high-value products integrating its capabilities in electronics, lighting, and HMI systems. This focus has resulted in a robust portfolio of new projects set to drive profitable growth, particularly in North America. Notably, the technological solutions division has outperformed the company average in several markets, including Mexico (+24%), Germany (+17%), and France (+13%).
In the months ahead, the Transformation Plan aims to further enhance margins to mitigate the revenue impacts of the current market environment while positioning the company to capitalize on future growth opportunities. During the first nine months, Antolin secured divestment agreements worth €119 million, representing nearly 80% of its target of €150 million in divestments for 2024-2025. This initiative is designed to strengthen Antolin’s balance sheet and align its geographic footprint with the evolving market landscape.
Additionally, following an agreement over the summer with its lenders to extend the maturity of its €500 million syndicated credit facility and a €250 million bond issuance, Antolin has no significant debt maturities until 2028.
SOURCE: Antolin
