Teknia increases profitability in the first half of 2024 in a complex environment

• The company managed to achieve an EBITDA margin of 10.6% despite a challenging environment due to project delays
• Teknia achieved a turnover of 220.5 million euros and an EBITDA of 23.4 million euros, both figures in line with budget
• The company continues to implement the objectives of its strategic plan ‘Moving Teknia 2025’, focusing on continuous process improvement and the expansion of its technological capabilities

Elorrio, 2 August 2024 – Teknia, the Spanish multinational specialising in the manufacture of metal and plastic components for mobility, has recorded solid profitability during the first half of 2024, with an EBITDA margin of 10.6% in the first half of the year. This result was achieved in a complex market context, with contained manufacturing volumes due to uncertainty about vehicle propulsion systems, which has led to the delay of projects linked to electrification.

Despite this, Teknia succeeded in meeting its estimated budget for the period with a turnover of €220.5 million, representing a 3.8% decrease compared to the first half of 2023, when the company achieved its highest sales figures to date.

Teknia has focused on optimising its cost structure, resulting in an EBITDA of €23.4 million (a 2.9% decrease) that is in line with the budget for the period. The company’s net profit for the first half of 2024 was €5.27 million, representing a 43% decrease compared to the same period in 2023, due to the impact of higher financial costs.

Teknia strengthens cash flow and maintains its solid financial profile during the first half of the year

The company increased its cash flow during the first half of the year to 17.5 million euros, compared to 17 million euros in the first half of last year. Furthermore, to comply with its strategic plan, the Group increased its investment, which reached 19.6 million euros, representing 8.9% of sales in the first half of 2024. Thanks to this effort, Teknia ensures the production of the new captures achieved and continues to improve its processes.

The level of debt stood at 2.24 times EBITDA, compared to 2.21 times in the first half of 2023, confirming the company’s solid financial profile in a scenario of rising interest rates. This reality was reinforced by the affirmation of the global BB+ rating recognised by Ethifinance, which upgraded Teknia’s financial profile to BBB.

Teknia makes progress on the objectives of the strategic plan ‘Moving Teknia 2025’

Teknia continued to advance its strategic initiatives and made further progress with its ‘Moving Teknia 2025’ strategic plan, which focuses on sustainability and innovation. In the first half of 2024, the company completed two important transactions. On the one hand, it acquired the Spanish company Xpander, which specialises in digital transformation consulting and blockchain technology, with which the Group aims to strengthen its digitalisation capabilities. On the other hand, the Group created its first investment vehicle, Teknia Partners, to support start-ups in the new mobility sector, which has already made two initial investments in the companies Zuma and Libattion.

Javier Quesada de Luis, CEO of Teknia, said: ‘The results for the first half of 2024 reflect our ability to adapt and improve profitability, even in a challenging environment such as the current one, with contained manufacturing volumes due to uncertainty over the vehicle propulsion model and the resulting delay in electrification-related projects. This shows that we are on the right track, and we will continue to focus on operational efficiency and our strategic initiatives to ensure sustainable growth, as we have been doing semester after semester’.

About Teknia

Teknia is a multinational Group specialising in the manufacture of mobility through metal and plastic components using a wide range of technologies. Founded in 1992 as a global supplier to the automotive industry, Teknia is now present in 13 countries, with 23 plants and more than 3,500 employees. The company’s customers include the world’s leading vehicle manufacturers as well as other Tier-1 suppliers to the industry. Teknia’s turnover amounted to 459 million euros in 2023.

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Email: communication@tekniagroup.com