AKWEL SADIR: A TURBULENT QUARTER AND A POSTPONED FUTURE

In a world where the automotive industry is rapidly evolving, AKWEL SADIR, a key player in the automobile components sector, finds itself navigating through turbulent waters. The company, known for its specialization in fluid management, mechanisms, and structural parts for electric vehicles, has recently disclosed its financial performance for the first quarter of 2025, revealing a concerning downturn in its consolidated turnover.

A Decline Amidst Global Challenges

The first quarter of 2025 has been a challenging period for AKWEL, with the company reporting a consolidated turnover of €255.6 million, marking a -3.0% decline compared to the same period in 2024. This downturn is particularly significant given the backdrop of a global automotive production slump, with most key manufacturing countries experiencing declines, except for China and Japan. The situation was somewhat mitigated in Germany, India, and Mexico, where the decline was less severe. However, these factors contributed to AKWEL’s reported revenue decline of -4.0% at constant scope and exchange rates.

Geographic Disparities in Performance

The downturn in turnover was not uniformly distributed across AKWEL’s global operations. The EMEA region (Europe, Middle East, and Africa) saw a -3.8% decline, while the Americas experienced a -1.9% decrease. In contrast, the Asia region bucked the trend with a +2.8% increase in turnover. This geographic disparity highlights the uneven impact of global automotive production trends on AKWEL’s operations.

Product Lines: A Mixed Bag

The performance across AKWEL’s product lines was mixed. While the company saw growth in its emissions control (+10.4%) and cooling systems (+4.5%) product lines, other areas such as air management (-27.1%), mechanical parts (-8.7%), and fuel systems (-2.7%) experienced declines. The mold business remained stable, with a turnover of €56 million.

Financial Health and Future Outlook

Despite the downturn, AKWEL’s net cash position stood at €149.6 million as of March 31, 2025, an increase of €46 million from the end of 2024. However, the company’s decision to postpone the publication of its annual financial report and the annual general meeting until May 28, 2025, and June 25, 2025, respectively, raises questions about its financial health and future prospects. This postponement follows a request from statutory auditors for further auditing of control procedures at the Ixtaczoquitlan site in Mexico, although the internal audit suggests this should not materially impact the financial statements.

A Critical Juncture

AKWEL stands at a critical juncture. The automotive industry’s shift towards electric vehicles presents both challenges and opportunities. The company’s ability to navigate the current downturn, address the concerns raised by auditors, and capitalize on its strengths in fluid management, mechanisms, and structural parts for electric vehicles will be crucial in determining its future trajectory.

As AKWEL prepares to release its sales figures for the first half of 2025 on July 24, 2025, stakeholders and observers alike will be watching closely. The company’s performance in the coming months will not only shed light on its resilience in the face of global challenges but also signal its potential to emerge stronger in the evolving automotive landscape.