Accelleron Industries AG: Record Growth and Positive Outlook

Accelleron Industries AG ((CH:ACLN)) has held its Q4 earnings call. Read on for the main highlights of the call.

Accelleron Industries AG’s recent earnings call was imbued with a strong positive sentiment, underscored by record-breaking revenue and growth. The company showcased its strategic prowess through successful acquisitions and impressive market shares in key segments. Despite facing challenges in certain markets, Accelleron’s outlook for 2025 remains optimistic, with a focus on sustainable growth and market expansion.

Record-Breaking Revenue and Growth

Accelleron Industries AG achieved a significant milestone by surpassing the USD 1 billion revenue mark, reaching USD 1.023 billion, which represents an almost 12% year-on-year increase. The operational EBITDA rose by 17% to USD 262 million, and net income saw a remarkable 63% growth to USD 179 million. These figures highlight the company’s robust financial health and growth trajectory.

Successful Bond Issuance

In a testament to its strong market confidence, Accelleron issued its first bond, raising CHF 180 million. The bond was several times oversubscribed, indicating robust investor trust and a positive reception from the capital markets.

Acquisitions and Market Expansion

Accelleron completed strategic acquisitions of Italy’s OMC2 and Canada’s True North Marine (TNM), enhancing its capacity in fuel injection and marine digital solutions. These acquisitions brought in 120 new employees, further bolstering the company’s market expansion efforts.

High Market Share in LNG Segment

The company achieved impressive market shares in the LNG segment, capturing roughly two-thirds of LNG-fueled low-speed engines and over 90% market share with LNG carriers using Accelleron turbochargers. This dominance underscores Accelleron’s competitive edge in the industry.

Strong Service Business Growth

Accelleron’s service business experienced significant growth, with 60 full-cover service agreements signed and sales of TPX high-speed turbochargers doubling to 2,600 units in 2024. This growth was primarily driven by demand from data centers.

Temporary Slowdown in Gas Compression Market

The U.S. gas compression market experienced a temporary slowdown as customers reduced their inventories, impacting revenue in the High Speed segment. This slowdown is seen as a short-term challenge for the company.

Moderate Growth in High Speed Segment

Despite a decrease in revenues by USD 1 million or 0.4% to USD 249 million, the High Speed segment saw an increase in the operational EBITDA margin by 150 basis points, indicating improved efficiency and cost management.

Challenges in Power Plant Market

The power plant market faces challenges with subdued new-build activity for Medium Speed power generation, which may impact future growth opportunities. Accelleron is aware of these challenges and is strategizing accordingly.

Forward-Looking Guidance

Accelleron provided an optimistic guidance for 2025, projecting a 4% to 6% revenue growth in constant currency and targeting an operational EBITDA margin between 25% and 26%. The company emphasized its commitment to ongoing investments in R&D, particularly in the decarbonization of the Marine industry, and plans to expand capacity in fuel injection systems and enhance digital solutions. Additionally, a proposed 47% increase in dividends to CHF 1.25 per share reflects Accelleron’s dedication to returning value to shareholders.

In summary, Accelleron Industries AG’s earnings call highlighted a period of robust growth and strategic expansion, with record-breaking financial performance and successful market penetration. The company’s forward-looking guidance remains positive, focusing on sustainable growth and shareholder value. Despite facing some market challenges, Accelleron is well-positioned for continued success in 2025.