CIE Automotive (AO) | Buy | Confirming its best-in-class status in Q1

研报英文原文证据摘录

CIE Automotive (AO) | Buy | Confirming its best-in-class status in Q1

026 earnings review

CIE posted Q1 2026 sales of EUR1.05bn, 5% ahead of consensus expectations.

Sales increased by 5.2% on a LFL basis, implying 8.6pp outperformance versus the change in global light vehicle production

(-3.4% according to S&P Global), due to a more favourable geographic mix (India, Brazil). FX headwinds remained significant

(-7%), while we note a 5.2% tailwind from the integration of Aludec and Technivas.

By region, the top line performance in Q1 was robust across all regions except NAFTA. The solid outperformance reflects both

solid momentum in mature markets and the benefits of diversification into emerging regions, notably Brazil and India (27% of

combined revenues).

EBIT reached EUR152m, 6% above consensus, translating into a robust 14.4% margin, 20bps ahead of consensus and flat YOY.

Margins improved across most regions except in NAFTA due to the negative top-line development, while we note the impressive

performance of Brazil (18.2% EBIT margin).

Finally, CIE generated EUR115m of FCF in Q3 (partly boosted by EUR17m positive working capital swings), bringing net financial

debt to c. EUR1bn (1.3x net debt/EBITDA) – slightly ahead of our expectations.

Buy, EUR34 TP confirmed

Management confirmed the 2026-27 guidance (at constant scope and FX), which includes low to mid-single digit market

outperformance, profitability in line with 2025 levels, and 65% EBITDA conversion to cash.

We leave our estimates unchanged at this stage following our recent update. The Middle East situation is driving inflation

expectations and interest rates higher, and consumer confidence data lower. The back-end of the year may prove more

challenging than originally thought, in our view.

IMPORTANT.