Brembo Reports Moderate Gains in H1 2024 Amid Challenging Market

Italian premium brake manufacturer Brembo reported modest growth in its first-half core earnings and revenue for 2024. Despite a challenging outlook for the automotive sector, the company’s performance was bolstered by strong sales in Asian markets and a robust aftermarket business.

Market Context and Performance:

The automotive market faced contraction during the first half of the year, affecting several major automakers like Stellantis, Porsche, and Mercedes.

Executive Chairman Matteo Tiraboschi noted that the market struggled, even in the premium segment.

However, Brembo managed to increase its revenue and maintain profitability, which Tiraboschi described as an achievement given the tough market conditions.

As of 1515 GMT on the earnings report day, Brembo’s shares rose by 3.8%, reversing earlier losses.

Financial Highlights

• EBITDA Growth: Brembo’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 2.1% to €351.4 million ($381 million) for the six months ending June 30, 2024.
• Revenue: The company grew by 2.8%, surpassing €2 billion for the first time. This growth was driven by a 7.2% increase in China and a significant 21.1% growth in India.
• EBITDA Margin: The EBITDA margin was stable at 17.5%, compared to 17.6% in the same period the previous year.

Regional and Sectoral Insights

Asia played a crucial role in Brembo’s growth, with notable performance in China and India. Tiraboschi highlighted the importance of these markets, particularly India’s motorbike segment.

The aftermarket business also contributed positively, as fewer new car sales increased demand for vehicle maintenance and replacement parts.

Brembo serves prominent automakers, including Tesla, BMW, and Chinese electric vehicle (EV) manufacturer BYD. The company reiterated its full-year forecast, expecting moderate revenue growth and stable margins. This outlook remains cautiously optimistic amid ongoing market uncertainties.