FREE Earnings Deep Dive: CIE Automotive Posts Record-Breaking Q1, Defying the Global Automotive Slump
Record €94M Q1 Profit on €1.01B Revenue, Driven by Margin Strength and Cash Generation
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CIE Automotive Posts Record €94M Q1 Profit on €1.01B Revenue, Driven by Margin Strength and Cash Generation
About CIE
CIE Automotive S.A. (BME: CIE) is a global automotive supplier based in Bilbao, Spain, specializing in the design, manufacturing, and sale of high-precision components and sub-assemblies for powertrain, transmission, chassis, and interior systems. Operating across Europe, North America, Latin America, and Asia, CIE serves leading OEMs and Tier-1 suppliers through a diversified, multi-technology platform. The company combines efficient capital deployment with robust free cash flow and sector-leading margins — generating consistent returns while remaining adaptable to automotive market shifts, including electrification and lightweighting.
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Record-Breaking Q1 for CIE, Defying the Global Automotive Slump
Revenue €1.01B | EBITDA €192M | Net Income €94M | Operating Cash Flow €126M
CIE Automotive has delivered its best quarterly performance to date, highlighting the strength of its vertically integrated, globally diversified model in a challenging environment. Despite sector headwinds and macro uncertainty, the company reported €1.01 billion in Q1 revenue, with EBITDA of €192 million (+7% YoY) and EBIT of €146 million (+9% YoY), translating into sector-leading EBITDA and EBIT margins of 19.0% and 14.4%, respectively.
Bottom-line performance was equally strong, with net income rising to €94 million, while operating cash flow hit €126 million, representing a 68% EBITDA-to-cash conversion rate. This high cash efficiency reinforces the business’s structural advantages — operational flexibility, geographic diversity, and disciplined working capital management.
“In a demanding environment, we continue to generate value in a solid and consistent way. Our operating margins remain among the highest in the sector,” said CEO Jesús María Herrera at the AGM in Bilbao.
“With robust operating cash flow and minimal debt, we are further strengthening our financial position to face future challenges with confidence.”
Business Highlights
CIE Automotive designs and manufactures a wide range of precision automotive systems — from powertrain and transmission components to interior/exterior trim, chassis structures, and lightweight assemblies. Its customer base includes global OEMs and Tier-1 suppliers across Europe, North America, Asia, and Latin America.
What sets the company apart is its multi-technology and multi-product strategy, allowing for flexible manufacturing and cost optimization across regions and platforms. Unlike traditional auto suppliers that rely on narrow product categories or single geographies, CIE’s hybrid model provides resiliency and margin durability across cycles.
Recent years have also shown CIE’s strong execution on capex discipline, M&A integration, and shareholder returns. It has combined moderate growth with double-digit return on equity and a stable dividend policy — growing its dividend at a 16.5% CAGR over the past decade, all while maintaining a Debt/Equity ratio under 0.6x.
Valuation Snapshot (FY2025e)
Revenue: ~€4.1B
EBITDA: ~€740M
EBITDA Margin: ~18.1%
Net Income: ~€340M
EV/EBITDA (Fwd): 5.0x
P/E (Fwd): 8.0x
Free Cash Flow Yield: 7.5%
Dividend Yield: ~3.8%
ROE: 31.7%
Despite its consistent cash generation, global footprint, and high capital returns, CIE trades well below peers in both European and North American industrial markets. The market still appears to discount the durability of its cash flows, possibly due to sector cyclicality and auto electrification concerns.
But unlike commodity-exposed or capex-heavy suppliers, CIE’s lightweight asset base and component-agnostic model mean that it can pivot into EV platforms without major reinvestment. In that context, its forward EV/EBITDA of 5.0x and FCF yield over 7% appear disconnected from fundamentals.
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Important disclaimer:
Data is taken from Finchat or IR section of the company’s web page.
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