AKWEL POSTS 1H PROFIT DROP AMID DISPUTES, COST CONTROLS BOOST MARGIN

KUALA LUMPUR, Sept 19 (Bernama) -- AKWEL, a manufacturer of parts and systems for the automotive and heavy-vehicle industry, has reported a net income of 13.6 million euros for the first half (1H) of 2025, a decrease of 32.9 per cent compared to the same period last year. (1 Euro = RM4.93)

The group’s consolidated revenue totalled 510.6 million euros, down 3.4 per cent from the prior year. Despite the dip in revenue, the group navigated this period with strong cost control, maintaining a healthy cash position of 139.2 million euros at the end of June 2025.

During the first half of 2025, AKWEL saw its earnings before interest, taxes, depreciation, and amortisation (EBITDA) fall sharply to 6.5 million euros, marking a significant decline of 86.8 per cent compared to the previous year. This drop was largely due to a 52.5 million euros impact on external costs stemming from ongoing customer disputes related to SCR tanks.

However, the company’s current operating income rose by 14.1 per cent, reaching 27.8 million euros, aided by 32.8 million euros in provision reversals.

In a statement, the group also reported its activity with strategic customers has shown good resistance, bolstered by the postponement to 2026 of the production shutdown of SCR tanks.

The group remains focused on its strategic priorities, developing its product potential as part of the transition to electric vehicles (EVs), optimising its operational performance to remain agile in a particularly unstable automotive market and global environment, while continuing to implement its corporate social responsibility (CSR) commitments.

Looking ahead, the Annual General Meeting has been set for Sept 30, and the dividend payment for the 2024 financial year is scheduled on Oct 7.

As an independent family business listed on Euronext Paris, with 8,600 employees in 20 countries across five continents, AKWEL remains a key enabler of next-generation mobility, particularly in fluid management and structural systems for EVs.

-- BERNAMA