CAREL Industries S.p.A. has announced its financial results for 2024, reporting consolidated revenues of €578.5 million, an 11.0% decline compared to 2023. Adjusting for currency exchange and acquisitions, the drop was 13.7%. The decrease was attributed to weaker demand in Europe and high inventory levels across the supply chain.
Despite the revenue decline, the company maintained a consolidated EBITDA of €104.9 million, representing 18.1% of revenues. Net profit stood at €62.6 million, down 11.7% year-on-year. CEO Francesco Nalini noted the challenging economic climate, but highlighted CAREL’s ability to maintain profitability through cost-control measures. The company also saw record-high R&D investments, surpassing 5% of total revenues.
Francesco Nalini, CEO, stated: “After years of strong growth, 2024 was marked by economic challenges and regional disparities. Despite this, we maintained over 18% profitability by controlling costs and generating strong cash flow, covering both €32 million in investments and rising working capital. R&D spending exceeded 5% of revenues, supporting our long-term vision. We also advanced sustainability efforts, with new emissions targets and a gender equality certification. While 2025 will bring geopolitical uncertainties, factors like lower interest rates and inventory normalization give us confidence to face the year with optimism.”
Market Performance and Regional Trends
CAREL’s HVAC segment, which accounts for 71% of revenues, declined 13.1%, largely due to weaker demand for residential heat pumps in Europe. The refrigeration sector, representing 29% of revenues, saw a 3.9% decline, with contrasting regional trends: strong investment in North America versus stagnation in EMEA.
Regionally, revenue performance varied:
- EMEA (65% of revenues): 16.7% decline due to economic and regulatory uncertainties.
- APAC (14% of revenues): 5.8% decline, impacted by a weak Chinese market.
- North America (18% of revenues): 6.7% growth, driven by demand for data center cooling and sustainable refrigerant solutions.
- South America (3% of revenues): double-digit growth, led by a strong performance in Brazil.
Financial and Strategic Developments
The company's net financial position was negative at €50.2 million, affected by the €44.3 million acquisition of the remaining 49% stake in CFM. CAREL’s strong €108.3 million operating cash flow helped fund €32 million in capital investments and €21 million in dividend payments.
Looking ahead, CAREL expects a stabilized first quarter in 2025, followed by stronger performance from Q2 onward, barring unforeseen geopolitical disruptions. The company also announced a new sustainability plan (2025-2028) with €8 million in commitments, targeting emissions reductions and gender equality.
A €0.165 per share dividend has been proposed, with payment set for 25 June 2025.
