Johnson Electric reports results for the year ended 31 March 2025
Highlights of FY24/25 Results Group sales US$3,648 million – down 4% compared to the prior year Gross profit US$843 million or 23.1% of sales (compared to US$851 million or 22.3% of sales in the prior year) Adjusted EBITA US$344 million or 9.4% of sales (compared to US$343 million or 9.0% of sales in the prior year) Net profit attributable to shareholders totalled US$263 million – an increase of 15% compared to the prior year Underlying net profit, adjusted to exclude non-cash foreign exchange rate movements and restructuring charges, totalled US$274 million – an increase of 9% Free cash flow from operations totalled US$286 million compared to US$422 million in the prior year A recommended final dividend of 44 HK cents per share (5.64 US cents) As of 31 March 2025, cash reserves amounted to US$791 million and the ratio of total debt to capital was 12% HONG KONG SAR – Media OutReach Newswire – 28 May 2025 – Johnson Electric Holdings Limited (“Johnson Electric”), a global leader in electric motors and motion subsystems, today announced its results for the twelve months ended 31 March 2025. Group sales for the 2024/25 financial year were US$3,648 million, a decrease of 4% compared to the prior year. Net profit attributable to shareholders increased by 15% to US$263 million or 28.16 US cents per share on a fully diluted basis. Underlying net profit, adjusted to exclude non-cash foreign exchange rate movements and restructuring charges, increased by 9% to US$274 million. Sales Performance The Automotive Products Group (“APG”), Johnson Electric’s largest operating division, achieved sales of US$3,072 million. Excluding currency effects, APG’s sales decreased by 3%. Automotive production volumes in several major markets were below prior year levels due to the combination of subdued economic conditions, elevated new vehicle prices, high financing costs, and uneven consumer confidence. Supply-demand dynamics were further impacted by a temporary slowdown in the transition to electrification in some markets as governments rethink policy support, OEMs adjust the propulsion mix of their model line-ups, and consumers react to the comparatively high price of battery-electric vehicles. APG experienced lower sales in each of the three major geographic end markets, with differences in large part reflecting the variations in our share of content within particular OEM vehicle models and whether or not those models are proving popular with consumers. In Asia, for example, APG sales decreased by 1% on a constant currency basis compared to a 2% increase in the region’s total light vehicle production volume. This was primarily due to the weaker sales performance of non-domestic car brands in China, among which APG has historically maintained an above average market share. In Europe, APG’s sales declined by 4% on a constant currency basis compared to a 6% decline in regional vehicle production. And in the Americas, sales declined by 6% in comparison to a 2% decline in vehicle production volume. In both of these regions, a key factor driving APG’s sales performance was end-market share changes between OEMs, which has become less predictable as the industry wrestles with several transformational forces including electric vehicle adoption rates, the growing success of Chinese OEMs as exporters, and moves by governments to impose protectionist tariffs on imports. APG’s strategy to address these shifting automotive industry dynamics is two-fold. Firstly, it is to continue to bring to market innovative technologies that help enable electrification, reduce emissions, and enhance passenger safety and comfort. Secondly, APG aims to offer its customers a compelling total cost and value proposition that combines speed, scale and reliability of production with a responsive global operating footprint. This strategy is gaining traction. One indication of the strength of this model is APG’s increasing success in winning new business from the largest Chinese OEM vehicle manufacturers which are expected to contribute a significant and growing share of the division’s sales within the next five years. The Industry Products Group (“IPG”) – contributing 16% of total Group sales – continued to experience challenging trading conditions. The division’s sales were US$575 million which, excluding the effects of currency movements, represented a decline of 5% compared to the prior year. Global demand for many consumer and industrial products remains sluggish in the post-pandemic era and this has been compounded by an acceleration of the commoditization of numerous hardware goods. In response, management has taken decisive action to reduce overheads and refocus the division around a products group that emphasises standardization and cost leadership. In parallel, IPG is investing in designing differentiated and innovative motion system solutions in a select number of high growth application segments, including robotics, warehouse automation, medical devices, electric bikes, and high-precision manufacturing and measurement equipment. This dual-track approach is positioning IPG for improved competitiveness and long-term growth. Gross Margins and Operating Profitability The Group’s gross profit amounted to US$843 million – a decrease of 1% compared to the prior year. As a percentage of sales, however, gross profit increased from 22.3% to 23.1%. The improvement of gross margin was primarily the result of lower raw material costs, direct labour, and production overhead charges that combined to more than offset the effects of reduced sales volumes. Reported earnings before interest, tax and amortization (“EBITA”) amounted to US$331 million (compared to US$315 million in the prior year). EBITA adjusted to exclude non-cash foreign exchange rate movements and restructuring charges, amounted to US$344 million or 9.4% of sales (compared to 9.0% in the prior year). The Group’s adjusted EBITA result was boosted by US$15 million in net gains from Other Income & Expenses. This was primarily due to a mark-to-market gain on an investment in an autonomous driving technology company, government grants, as well as net changes in the valuation of other financial and monetary assets and liabilities, and other foreign currency hedging contracts. Net Profit and Financial Condition Net profit attributable to shareholders increased by 15% to US$263 million or 28.16 US cents per share on a fully diluted basis. Underlying net profit, adjusted to exclude non-cash foreign exchange rate movements and restructuring charges,




