AMG Delivers Strong Full Year 2024 Earnings

Core Insights - AMG Critical Materials N.V. reported fourth quarter 2024 revenue of $361 million, slightly down from $367 million in the same quarter of 2023, with a full year revenue of $1,440 million, representing an 11% decrease compared to 2023 [1][9] - The company achieved an adjusted EBITDA of $168 million for 2024, despite significant declines in lithium and vanadium prices, which fell by 65% and 23% respectively [2][3] - AMG Technologies segment showed exceptional performance, with adjusted full year EBITDA of $68 million, more than double that of 2023, and a record order intake of $380 million [2][24] Financial Performance - Fourth quarter adjusted EBITDA was $58 million, marking the highest quarterly result in 2024, despite ongoing weakness in lithium and vanadium prices [8][9] - Full year 2024 adjusted EBITDA decreased to $168 million from $350 million in the previous year, reflecting the impact of lower commodity prices [9][13] - The total proposed dividend for 2024 is €0.40 per ordinary share, including an interim dividend of €0.20 already paid [8][33] Segment Analysis AMG Lithium - Revenue for AMG Lithium in Q4 2024 was $53 million, a 35% decrease year-over-year, primarily due to a 44% decline in lithium market prices [11][13] - Full year revenue for AMG Lithium dropped 56% compared to 2023, driven by lower average annual prices [11][15] - The lithium concentrate plant expansion in Brazil has been completed, increasing capacity from 90,000 tons to 130,000 tons per year [16] AMG Vanadium - Q4 2024 revenue for AMG Vanadium was $145 million, a 10% decrease from the previous year, with full year revenue also down 11% [17][18] - Adjusted gross profit for Q4 2024 increased by 47% compared to the same period in 2023, largely due to benefits from Section 45X production credits [18][20] - Full year adjusted EBITDA for AMG Vanadium decreased from $81 million in 2023 to $76 million in 2024, impacted by lower profitability in vanadium [20] AMG Technologies - Revenue for AMG Technologies in Q4 2024 increased by 32% to $163 million, driven by higher sales prices of antimony and increased silicon sales volumes [21][23] - Full year revenue for AMG Technologies rose 24% compared to 2023, reflecting strong performance in Engineering and higher sales prices [21][23] - The segment's adjusted EBITDA for 2024 was $68 million, more than double the previous year's figure [23] Operational Developments - AMG Engineering secured a record order intake of $380 million in 2024, with an order backlog of $374 million as of December 31, 2024 [8][24] - The company is advancing its lithium expansion initiatives, with the lithium hydroxide refinery in Germany progressing as planned [39][40] - AMG Silicon has temporarily halted operations due to high electricity prices, with plans to resume one furnace operation in Q2 2025 [25] Liquidity and Financial Position - As of December 31, 2024, AMG had $494 million in total liquidity, including $294 million in unrestricted cash and $200 million available on its revolving credit facility [31][38] - The company recorded a net finance cost of $13 million in Q4 2024, a shift from net finance income in the same period of 2023 [32] - AMG's total assets increased to $2,039 million as of December 31, 2024, compared to $1,963 million in 2023 [46]