Vitesco Technologies Surpasses Financial Expectations in 2023

Vitesco Technologies Group AG, a global leader in drive technologies and electrification solutions, announced an overachievement in its financial results for the fiscal year 2023, beating both profitability and cash flow forecasts. The company reported an increase in sales, reaching €9.23 billion, up from €9.07 billion in 2022. The adjusted EBIT margin also experienced a significant rise, hitting 3.7%, which is above their initial forecast range of 2.9% to 3.4%. Free cash flow for the year stood at €84.9 million, surpassing company expectations and market consensus figures.

The electrification segment saw a sales growth of approximately 21%, amounting to €1.3 billion, despite a softened demand in the latter part of the year. Total order intake in 2023 was more than €12 billion, with about 70% attributed to electrification. With a robust order backlog worth approximately €58 billion, over half of which is related to electrification, Vitesco Technologies strengthens its position in the electromobility market.

Looking ahead to 2024, Vitesco projects a sales range between €8.3 billion and €8.8 billion, and aims for a further enhanced adjusted EBIT margin between 4.5% to 5.0%. However, it anticipates a negative free cash flow of around €350 million mainly due to reduced contract manufacturing activities. The company remains optimistic about achieving break-even in its electrification business within the year.