Gestamp, the multinational company specialising in designing, developing, and manufacturing highly engineered metal components for the automotive industry, achieved its highest-ever revenues in CY2023.
Despite unfavorable currency conditions, Gestamp’s revenues surged by 14.4% to €12,274 million (12.27 billion euros) for the year. The company’s exceptional performance, surpassing the market by 6.7 percentage points, is attributed to its strong competitive stance with clients, product diversity, and geographical spread.
During the January-December period, EBITDA reached €1,371 million, marking a 13.4% year-on-year increase, with a profitability of 12.3% (excluding raw material impacts). Despite market cost pressures and currency effects, net income rose by 8% to €281 million.
Gestamp generated €207 million in free cash flow by the end of 2023, leading to a reduction in debt to €2.058 million, resulting in a net debt-to-EBITDA leverage ratio of 1.5x, the lowest since its IPO.
Francisco J. Riberas, Executive Chairman of Gestamp, praised the group’s performance, emphasizing robust revenue growth, efficient margin management, and strong cash flow generation. He credited the company’s success to its more than 44,000 employees and reaffirmed focus on profitable and sustainable growth, particularly in NAFTA.
NAFTA Region Focus:
Gestamp aims to double its EBITDA margin in the NAFTA region to match its global performance by 2026. The Phoenix plan, encompassing operational enhancements, cost savings, talent acquisition, and commercial strategies, underpins this objective.
Electric Vehicle (EV) Growth:
EV-related revenues constituted 20% of Gestamp’s automotive components sales in 2023, reflecting a 6-percentage point increase from CY2022. Gestamp anticipates stable EV penetration, projecting a 26% growth from 2023 to 2027.
Order Backlog and Outlook:
With an order backlog of up to €56.6 billion for the next five years, Gestamp foresees revenue targets for 2024-2028. Despite modest growth projections and inflationary pressures in 2024, Gestamp aims to surpass market expectations and uphold automotive business profitability.
Decarbonization Efforts:
Gestamp champions energy and material decarbonization. In 2023, the company partnered with ArcelorMittal, SSAB, and Tata Steel to promote circularity and utilize low-emission steel with high scrap content across its supply chain.
Gestamp’s strategic partnerships and performance indicators underscore its commitment to sustainable growth amidst industry transformation.