TI Fluid Systems maintains guidance, unveils new regional structure

(Sharecast News) - TI Fluid Systems updated the market on its trajectory on Wednesday as the automotive industry continued its shift towards electrification. The FTSE 250 company, which was holding its capital markets day, reinforced its proficiency in fluid handling as underpinning its business model.

Chief executive officer Hans Dieltjens articulated the group's belief in its capacity to maintain consistent top-line growth throughout the industry's electrification metamorphosis.

Furthermore, the firm emphasised its dedication to producing robust returns for its stakeholders, setting sights on attaining double-digit adjusted EBIT margins in the foreseeable future.

Moreover, a significant organisational restructuring was unveiled to bolster TI's alignment with client needs and enhance agility in adapting to regional disparities in the electrification pace.

Effective 1 January, the company said it would revamp its current product line structure, shifting from fuel-carrying and fuel tank and delivery systems.

The new blueprint would pivot to a geographical framework, introducing regional divisions for the Americas, Europe and Africa, and Asia-Pacific.

"The group remains confident in the upgraded 2023 outlook provided with the first half results in August," the board said in its statement.

It said that in line with its 'Taking the Turn' strategy, the group had established several medium-term financial targets, including 2026 revenue of €3.8bn to €4.2bn at constant currency, with a longer-term ambition to generate revenue of over €4.5bn by 2030.

The group also targeted a return to a double-digit adjusted EBIT margin in the medium term, supported by increased market volume, commercial effectiveness, and continued productivity.

"The group continues to target adjusted free cash flow conversion of 30% of adjusted EBITDA, which will support the revised capital allocation policy announced in August."

At 0814 BST, shares in TI Fluid Systems were up 2.36% at 121.4p.

Reporting by Josh White for Sharecast.com.