Accelleron breaks through the USD 1 billion revenue mark
The Swiss Group recorded another successful year. As the company celebrated the 100-year anniversary of the turbocharger, it broke through the USD 1 billion revenue mark in 2024. “We experienced extraordinary demand for marine products and services”
Baden - Accelleron, a global technology leader in turbocharging, fuel injection, and digital solutions in the marine and energy industries, recorded another successful year. As the company celebrated the 100-year anniversary of the turbocharger, it broke through the USD 1 billion revenue mark in 2024. “We experienced extraordinary demand for marine products and services. In the energy industry, high demand for emergency power solutions for data centers compensated for a temporary slowdown in the gas compression market. Strong topline growth and operating leverage resulted in increased profitability,” said Accelleron CEO Daniel Bischofberger.
Net income increased by 63%
Revenues in 2024 reached USD 1,022.5 million, increasing by 11.8% year-on-year (12.9% in constant currency, 7.3% organic). Accelleron’s operational EBITA was up by USD 38.8 million, or 17.4%, to USD 261.9 million.
The operational EBITA margin increased by 1.2 percentage points to 25.6%, thanks to the strong topline growth and operating leverage. In 2024, Accelleron concluded all build-up activities, incurring non-operational costs of USD 15.8 million, down from USD 77.4 million in 2023. Net income increased by USD 69.4 million, or 63.1%, to USD 179.4 million.
Free cashflow conversion stood at 99.1% (2023: 99.2%). In spite of Accelleron’s strong growth, free cash flow generation was USD 177.7 million in 2024 (2023: USD 109.1 million). The net leverage came in at a low 0.7, despite M&A-related investments of USD 56 million in 2024.
Medium & Low Speed segment
Revenues in the Medium & Low Speed segment increased by USD 108.6 million, or 16.3% (+10.1% organic), to USD 773.5 million, compared to the previous year. Strong shipping demand, paired with geopolitical tensions, led to high ship utilization. Hence, the company further grew its service business, supplemented by the selling of retrofit solutions that provide tangible fuel savings and emissions reductions for marine customers.
Accelleron also capitalized on opportunities in new-fuel applications. By acquiring Italy’s OMC2 and Canada’s True North Marine (TNM) in 2024, Accelleron expanded its capacities in fuel injection and capabilities in marine digital solutions. OMC2 production capacity will support OMT in addressing the significantly increased demand for advanced fuel injection systems, while TNM’s digital solutions will complement Accelleron’s Tekomar SaaS offering to help ship owners and charterers reduce, track, and report fuel consumption and emissions.
In the power plant market, new-build activity for medium-speed power generation remained subdued in 2024, but services performed well. Operational EBITA increased by USD 35.3 million, or 21.6%, to USD 199.1 million, compared to the previous year.
The operational EBITA margin increased by 1.1 percentage points to 25.7% in 2024. Strong operating leverage and effective cost management were the main drivers for the margin improvement. Cost inflation was largely offset by price increases.
High Speed segment
Revenues in the High Speed segment decreased by USD 0.9 million, or -0.4% (-0.1% organic), to USD 249.0 million, compared to the previous year. Accelleron strengthened its market position, capitalizing on the strong demand for turbocharged emergency power generation, especially solutions that protect critical infrastructure such as data centers.
Revenues in the gas compression market temporarily slowed as customers reduced their inventories. Operational EBITA increased by USD 3.5 million, or 5.9%, to USD 62.8 million, compared to 2023. The increase resulted from effective cost management and a beneficial product mix.
Consequently, the operational EBITA margin increased by 1.5 percentage points, to 25.2%. Substantially increased dividend In light of the strong financial results and healthy balance sheet, the Board of Directors will propose a dividend payment of CHF 1.25 per share (+47%; 2023: CHF 0.85) to the Annual General Meeting on May 6, 2025.
Positive outlook
The maritime industry is sticking to its path to decarbonization, driven by regulation from the United Nations’ International Maritime Organization (IMO) and the EU. In the merchant marine industry, shipyards’ order books are full for the coming years, and the share of new-builds for dual fuel capable vessels is high.
In the energy industry, there are opportunities for decentralized power generation with a trend toward greater flexibility and resilience. Demand from data centers will likely stay strong.
The gas compression market will remain volatile, but greater LNG carrier capacity could drive demand and export business for US gas. “As we look ahead to 2025, we are optimistic about the positive market momentum, driven by growing demand in the marine and energy industries. Accelleron is ideally set up to strengthen its market position in new-fuel applications, turbocharger services, fuel injection systems, and reliable energy supply,” said Bischofberger. “We will also leverage our unique service network and customer relationships to offer additional digital services.” Accelleron forecasts constant currency revenue growth of 4-6% in 2025 and an operational EBITA margin of 25-26%. However, geopolitical uncertainties and their potential impact on the company’s markets and businesses make forward-looking statements difficult.