In This Article:
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Net Sales (Q4 2024): $310 million, compared to $309 million in Q4 2023.
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Net Sales (Full Year 2024): $1.3 billion, compared to $1.4 billion in 2023.
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Adjusted EBITDA (Q4 2024): $35 million with a margin of 21%.
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Adjusted EBITDA (Full Year 2024): $146 million with a margin of 21%.
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Net Loss (Q4 2024): $10 million.
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Net Loss (Full Year 2024): $78 million.
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Unlevered Free Cash Flow (Q4 2024): $36 million.
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Unlevered Free Cash Flow (Full Year 2024): $55 million.
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Total Debt (End of 2024): $520 million, down $118 million from 2023.
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Cash on Balance Sheet (End of 2024): $40 million.
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2025 Net Sales Guidance: $1.3 billion to $1.4 billion.
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2025 Adjusted EBITDA Guidance: $160 million to $180 million.
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2025 Unlevered Free Cash Flow Guidance: $110 million to $130 million.
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2025 Capital Expenditures Guidance: $35 million.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Superior Industries International Inc (NYSE:SUP) successfully completed a major restructuring, consolidating European manufacturing operations in Poland, which is expected to enhance cost efficiency.
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The company attracted $520 million in new capital and refinanced all of its debt, extending maturities to 2028, which strengthens its financial foundation.
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SUP achieved a consistent adjusted EBITDA margin of 21% despite industry production declines, highlighting effective cost management and restructuring efforts.
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The company's local-for-local manufacturing footprint in Mexico and Poland positions it favorably to capture demand from OEM customers seeking shorter, de-risked supply chains.
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SUP anticipates outperforming the market in 2025 with substantial margin expansion, driven by improved capacity utilization and structural cost initiatives.
Negative Points
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Adjusted value-added sales declined by 4% year-over-year, in line with the overall industry decline, indicating pressure on growth.
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The company faces potential impacts from recent tariffs, which could affect industry vehicle production and SUP's operations.
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Net sales for the full year decreased from $1.4 billion to $1.3 billion, reflecting challenges in maintaining sales volume.
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Net loss for the year was $78 million, indicating financial challenges despite operational improvements.
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The geopolitical environment, including tariffs, presents uncertainties that could impact SUP's financial outlook and operations.
Q & A Highlights
Q: Majdi, what implications does the capacity situation have for Superior Industries in Europe and North America? How much flexibility do you have to increase capacity if needed? A: Majdi Abulaban, President and CEO, explained that Superior Industries has about 20% excess capacity in both Europe and Mexico. This flexibility is turning out to be a great asset, allowing the company to quickly absorb short-term business opportunities, especially in light of geopolitical headwinds on tariffs.