Standard Profil - comment

Standard Profil’s Q1 results highlight its operational leverage with revenue down 9%, but Gross Profit down 55%. Management is hopeful that the bottom of the cycle has passed, with Q1 revenues higher than Q3 2024. We don’t share that optimism and would point to the lower order book and the further delays in the “start of Production” SoP in the quarter, especially in BEV segments. 

The order book fell by 18%, impacted by i) lower new business awarded, ii) annual portfolio re-evaluation based on pricing adjustments agreed with customers, and iii) adjustment to future market volumes to align with the latest market analysts’ reports. The company will host a conference call on Friday, during which we intend to seek clarity on the relative impact of these three factors on the order book.

Standard Profil’s balance sheet is still in transition. 60% of bondholders have provided a new super senior €43.5m bridge loan, maturing in September 2025. Additionally, the ad-hoc group have assumed the RCF, extending the maturity date to September as well. We are expecting a proposal from the Company/ad-hoc bondholders on restructuring the bonds imminently.