The automotive supplier MAHLE closed the 2024 financial year with a positive consolidated net result, despite challenging market conditions. Operating profit (EBIT) increased from €304 million to €423 million, raising the EBIT margin to 3.6 percent. However, sales fell 5.6 percent organically to €11.7 billion, largely due to weak markets in Europe and North America and sluggish EV demand outside China.
“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, during the company’s Annual Press Conference. “Our MAHLE 2030+ strategy is gaining traction and allows us to be profitable despite difficult market conditions.”
MAHLE has consistently improved its earnings through cost-saving initiatives and portfolio streamlining, focusing on electrification, thermal management, and sustainable internal combustion engines. These efforts enabled the company to reduce its debt by €186 million, ensuring liquidity through successful refinancing. Looking ahead, MAHLE remains cautious, expecting a tougher environment in 2025 due to factors including new US import tariffs.
Market developments and challenges
“Despite the extremely adverse conditions and the fall in sales, we were able to stabilise our position. This is a success and the result of sustained, consistent transformation work,” said Markus Kapaun, Member of the Group Management Board and CFO.
Most business units were affected by the downturn. Thermal Management sales reached €4.1 billion, with an organic decline of 9.9 percent. The Electronics and Mechatronics Business Unit posted €1.3 billion, 5.7 percent below the prior-year figure. The Engine Systems and Components Business Unit recorded €2.4 billion, down 8 percent.
The Aftermarket Business Unit, however, reported growth, with sales rising 6.2 percent to €1.3 billion, driven mainly by strong growth in Asia/Pacific.
Profitability boosted by portfolio streamlining and efficiency measures
Despite lower sales, MAHLE improved its EBIT margin to 3.6 percent. This was achieved through decisive portfolio adjustments, including the sale of its stake in Behr-Hella Thermocontrol (BHTC) and its OEM thermostat business.
Additionally, MAHLE implemented a comprehensive package of process and efficiency measures, optimising sales and administration structures, adjusting its production network, selling unneeded property, and aligning employee numbers with lower sales volumes.
Debt reduced, equity ratio improved
These efforts helped reduce MAHLE’s debt by €186 million to €1.2 billion in 2024. The debt ratio improved from 1.5 to 1.2. With liquidity secured, the company can continue pursuing its transformation. The equity ratio also rose to 20.1 percent, its first increase in five years.
Research and development
In 2024, MAHLE invested €630 million in research and development, raising its R&D ratio to 5.4 percent of sales. The company filed 427 patent applications and reported 536 new inventions, underlining its commitment to innovation and its strong position as a driver of technological progress.
Innovations and orders received
A highlight of 2024 was the launch of MAHLE’s new bionic high-performance fan, which significantly reduces noise in fuel cell and battery-electric vehicles. Additional breakthroughs included an evaporative cooling system for fuel cell trucks and the integration of a Superior Continuous Torque electric motor into a fully electrified drive axle for heavy trucks.
MAHLE secured new orders worth €10.3 billion, including a record €1.2 billion order for a thermal management module and further major orders for battery cooling systems and electric compressors.
MAHLE remains firmly on course with its MAHLE 2030+ strategy, with China identified as a key growth market. The company already partners with international and Chinese OEMs and sees further opportunities, especially in the New Energy Vehicles (NEV) segment.
New group structure and new business fields
MAHLE launched a new group organisation at the end of 2024, merging business units to strengthen electrification and thermal management while streamlining its Management Board. The new structure aims to improve internal cooperation and speed up decision-making.
MAHLE also sees growth potential beyond the automotive sector. Its Lifecycle and Mobility Business Unit is set to become a pillar of growth, driven by expertise in thermal management, electric motors, and innovative solutions for mobility and the vehicle life cycle.
Sustainability strategy achieves successes
MAHLE earned a place on the Carbon Disclosure Project’s prestigious “A list” for the first time, recognising its success in cutting carbon emissions across production, supply chains, and product lifecycles. With a 47 percent reduction in Scope 1 and 2 CO2 emissions already achieved, the company is well on track to meet its 2030 target of 49 percent.
(Geo-) political and economic conditions must be right
Looking ahead to 2025, MAHLE CEO Arnd Franz warned of tougher conditions, especially after the US imposed new import tariffs on automotive goods. “As a globally active company committed to free and fair trade, we cannot understand this trade policy,” Franz said, noting the impact on supply chains and consumer prices.
Franz also welcomed the EU Commission’s plan to review CO2 regulations and stressed the need for technological diversity. “Two-thirds of our jobs in Europe and Germany depend on the internal combustion engine, which supports five times more jobs than e-mobility,” he explained, urging policymakers to consider climate, employment, and social policies when shaping the industry’s future.
He concluded that MAHLE’s ability to create new jobs would depend on improved economic and political conditions, underlining the crucial role of clear and supportive policymaking.
The 2024 annual report is available on the MAHLE website at https://annualreport.mahle.com/en.