Akwel: Net Income Drops by 33% Despite Improved Operating Margin
Automotive supplier Akwel reported its 2025 results with a 5.1% decline in revenue to 938.3 million euros, affected by the European automotive context and a planned decrease in SCR activities. Meanwhile, the group demonstrated cost control: the current operating margin improved by 0.8 points to 4.7%, but this was overshadowed by restructuring charges of 13.1 million euros and a customer dispute, bringing net income down to 16.2 million euros, a decrease of 33%.
Revenue and Operational Performance
Akwel recorded consolidated revenue of 938.3 million euros in 2025, down 5.1% from 989 million euros in 2024. This contraction affected all geographic areas: EMEA decreased by 5.4%, Americas by 4.1%, and Asia by 7.3%. On a constant exchange rate and scope basis, the decline was 4.1%. Despite this downturn, accelerated in the second half of the year, the group managed its expenses and wage costs effectively. The current operating result was 44.3 million euros, up 15.3% from 38.4 million euros in 2024, reflecting a current operating margin of 4.7% of revenue, compared to 3.9% the previous year.
Operational Result and Net Income
The operating result, down by 23.6% to 30.3 million euros, includes a non-recurring charge of 13.1 million euros related to industrial restructuring costs to adapt the production tool. The gross operating surplus (EBITDA) decreased by 58% to 36.7 million euros, mainly impacted by the settlement of a dispute with a client concerning SCR tanks, evaluated at a net cost of 19.6 million euros after provision reversals. Ultimately, the group's net income amounted to 16.2 million euros, down 33% from 24.2 million euros in 2024, with a net margin of 1.7% of revenue compared to 2.4% the previous year.
Financial Position and Outlook for 2026
Akwel had a net cash position of 100.4 million euros at the end of 2025 (including lease obligations), plus 32.6 million euros in term accounts recorded as financial assets, compared to 133.4 million euros at the end of 2024. The group generated a free cash flow of 17.5 million euros in 2025, thanks to a self-financing capacity of 15.5 million euros and an improvement in working capital needs of 37.7 million euros. Net investments remained significant at 35.7 million euros. For 2026, Akwel anticipates a decline in revenue between 12 to 15%, due to a planned reduction in volumes on SCR tanks, ongoing difficulties in the European automotive market, and uncertainties related to client programs. The group proposed a dividend of 0.30 euros per share for 2025, the same amount as the previous two years. The main challenge for investors lies in the group's ability to restore its margins once exceptional charges are absorbed and restructurings are completed, in a context of significant anticipated activity decline.
