SAF-HOLLAND SE: Resilient Model Amidst Market Challenges in 2024

SAF-HOLLAND SE reported notable resilience in its preliminary financial results for 2024, despite an 11% drop in sales to approximately EUR 1,877 million from the previous year. The company attributed the decline to weak demand in the original equipment segment in the EMEA and Americas regions. However, the aftermarket business showed strength, increasing its sales share from 31.2% to nearly 38%.

The company managed to improve its adjusted EBIT margin from 9.6% to 10.1%, thanks to cost adjustments and synergies from the Haldex acquisition. Regionally, EMEA's EBIT margin rose to 8.7%, while the Americas saw an increase to 11.3%. Conversely, APAC experienced a slight margin decline, impacted by reduced government infrastructure spending and the Indian elections.

Despite overall lower sales, investments in automation and new plants were scaled to ensure long-term growth potential.