TI Fluid Systems reports solid first half amid electric vehicle revolution
TI Fluid Systems
193.80p
17:15 07/01/25
Automotive fluid storage company TI Fluid Systems announced its half-year results for the period ended 30 June on Wednesday, reporting revenue growth of 4.5% period-over-period at constant currency, or around 3% above global light vehicle production volumes according to the board.
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The FTSE 250 firm said it saw a “solid” adjusted EBIT figure of €200.8m for the six months, and a consistent margin of 11.4%.
Profits for the period were up €5.0m at €76.2m, with adjusted net income growing €19.1m or 32.2% to €78.4m.
Adjusted basic earnings per share were 15.1 euro cents.
TI Fluid Systems also reported “strong” cash generation, with adjusted free cash flow sitting at €21.4m, and declaring an interim dividend of 3.02 euro cents per share.
Post-period end, it refinanced its borrowing facilities in July, repaying its 8.75% senior unsecured notes using cash and an additional term loan that it said would reduce interest expenses.
On the operational front, TI said it successfully executed its hybrid electric vehicle (HEV) and electric vehicle (EV) strategy, which would create further organic growth opportunities.
It said it received “significant” EV awards, and expected additional orders for the design, engineering and supply of thermal products with two leading high volume original equipment manufacturers (OEMs) with lifetime revenue opportunity of approximately €700m.
“We enter the second half of 2018 with positive momentum financially and strategically,” said TI Fluid Systems president and chief executive officer William L Kozyra.
“We continue to grow revenue in excess of global light vehicle production growth with strong profitability and cash flow.”
In addition, Kozyra confirmed the company secured “significant” new business awards with two global high-volume OEMs on their EV platforms for the design, engineering and supply of thermal products, which he said demonstrated its ability to leverage its fluid handling capabilities, long standing customer relationships and global footprint for increasing electrification trends.
“These EV thermal awards combined with the strong market acceptance of our plug-in hybrid electric vehicle (PHEV) leading pressurised fuel tank products, capability and technology reiterates our significant business strengths.
“These developments further increase our confidence that the group is well positioned to capitalise on the automotive megatrends of reduced emissions, fuel efficiency and electrification,” Kozyra explained.
“We continue to believe that the expected growth of HEVs, EVs and autonomous vehicles will be positive for the group.”