AKWEL Reports 32.3% Decline in Net Income in 2024 Amid Market Challenges

AKWEL, a leading global manufacturer of automotive and heavy-vehicle components, has announced its financial results for the year 2024, reporting a net income of €24.2 million, marking a 32.3% decline compared to 2023.

The company’s total revenue fell by 7.3% to €989 million, down from €1.066 billion in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also took a hit, dropping 14.4% to €87.2 million, while current operating income decreased 37.1% to €38.4 million.

Despite these challenges, AKWEL saw a significant improvement in operating cash flow, which increased by 49.7% to €95.7 million. The company also maintained high net investments of €40.3 million, focusing on safety enhancements, adaptation to electric and hydrogen-powered motors, and competitiveness through component integration.

AKWEL attributed its financial decline to inflationary pressures on raw materials, components, and payroll costs, compounded by an overall slowdown in market activity. However, the company emphasized its ongoing commitment to long-term growth, maintaining essential investments in new technologies and process improvements.

With the global automotive market in transition, especially in the electric vehicle (EV) sector, AKWEL predicts a similar revenue decline in 2025 due to production and sales delays in the EV segment. To navigate these challenges, the company is adjusting production costs, strengthening technological capabilities, and enhancing organizational agility.

AKWEL reported significant strides in its sustainability initiatives. The company successfully reduced carbon emissions by 36% compared to 2021, lowered water consumption, and improved workplace safety, with a continued decline in workplace accident frequency.

Operating across 20 countries on five continents, AKWEL employs 8,600 people worldwide. The company remains a key supplier for the automotive and heavy-vehicle industry, specializing in fluid management systems, mechanical components, and electric vehicle structural parts.

As the automotive sector evolves, AKWEL continues to leverage its expertise in plastics, rubber, metal, and mechatronics to remain competitive in an increasingly electrified market.