MAHLE Reports Profit Despite Sales Decline in Challenging Market

Automotive supplier MAHLE reported a positive consolidated net result for the 2024 financial year despite facing challenging market conditions that led to declining sales. The company saw its sales fall to €11.7 billion, representing an organic decline of 5.6 percent when adjusted for exchange rate and deconsolidation effects.

Despite the sales decrease, MAHLE improved its operating profit with earnings before interest and tax (EBIT) rising to €423 million from €304 million in the previous year. This pushed the EBIT margin to 3.6 percent, up from 2.4 percent.

The company attributed the sales decline primarily to weak markets in Europe and North America, along with sluggish demand for electric vehicles outside China. However, MAHLE's Aftermarket Business Unit bucked the trend, recording a 6.2 percent increase in sales when adjusted for exchange rate effects.

"It is only thanks to hard work that we were able to assert our position in terms of business operations," said Arnd Franz, Chairman of the Group Management Board and CEO at the company's Annual Press Conference. "Our MAHLE 2030+ strategy is gaining traction and allows us to be profitable despite difficult market conditions."

MAHLE improved its financial position by reducing debt by €186 million to €1.2 billion and improving its debt ratio from 1.5 to 1.2. The company's equity ratio rose to 20.1 percent, marking its first increase in five years.

Throughout 2024, MAHLE invested €630 million in research and development, representing 5.4 percent of sales. The company reported 536 new inventions and filed 427 new patent applications. Among its innovations was a bionic high-performance fan that significantly reduces noise in electric and fuel cell vehicles.

The company secured new orders totaling €10.3 billion across its strategic business areas, including a record single order worth €1.2 billion for a thermal management module. Additional orders for battery cooling systems and electric compressors exceeded €1 billion in total value.

Founded in 1920, MAHLE has evolved from a piston manufacturer to a global automotive supplier employing approximately 68,000 people. The company has been implementing its MAHLE 2030+ strategy to focus on electrification, thermal management, and sustainable internal combustion engines.

Looking ahead, MAHLE expects tougher market conditions in 2025, partly due to recently imposed US import tariffs. Franz expressed concern about these tariffs, stating they would "place a massive burden on automotive supply chains and result in cost increases for the automotive industry and ultimately higher costs for consumers."

The company also called for technological diversity in Europe's approach to carbon neutrality, noting that two-thirds of its European jobs depend on internal combustion engine technology, which Franz said offers "five times as many jobs as e-mobility."

MAHLE's workforce decreased from 72,373 to 67,708 employees during 2024 as part of its efficiency measures, and the company indicated it would only be able to create new jobs once economic and political conditions improve sustainably.