Brembo S.p.A.

Brembo said first-half 2024 revenues surpassed €2 billion for the first time ever, and revenues grew 2.8% year over year. Management also said EBITDA increased in the first half, while net profit declined versus the prior year due to exchange-rate differences and higher interest rates. For the full year, Brembo confirmed it expects moderate revenue growth and percentage margins in line with 2023. On capital and balance sheet items, management confirmed net debt of around €500 million and raised full-year CapEx to roughly €350-€400 million.

Matteo Tiraboschi framed the quarter as evidence of resilience in a difficult automotive environment, pointing to the company’s first-ever semester above €2 billion in revenue and positive EBITDA growth. He emphasized continued investment in global production capacity, the new Thailand site, and digital initiatives such as the investment in US startup Spoke Safety. His tone was confident but cautious, acknowledging geopolitical pressure, a weaker market outlook, and the impact of FX and higher rates on profit.

Andrea Pazzi addressed cash generation, capital allocation, and balance-sheet expectations. He said the company still expects net debt of about €500 million, while CapEx is being increased because Brembo is ‘anticipating some investment’ for market demand, Euro 7 projects, IT rollout under the Ishango program, and aftermarket expansion. He also said the second half should generate positive free operating cash flow, with the company offsetting part of the higher CapEx through operating cash generation and maintaining the same margin level as last year.

Analysts focused on CapEx, net debt, China, Porsche exposure, cash flow, buybacks, and the new Mexican plant. Management confirmed the full-year debt target around €500 million and said CapEx should be about €350-€400 million, with some investment brought forward. On China, management said Brembo’s H2 outlook is not as severe as broader market forecasts because customer mix differs and aftermarket is growing quickly; on Porsche, they said they see no impact today. On buybacks, management said no action is currently underway despite authorization from shareholders.