Arteche's Strategic Plan expects to reach between 520 and 540 million euros in revenues in 2026, compared to the more than 401 million obtained in 2023
The company has designed a 3-year scenario in which it will continue to increase its profitability to reach an EBITDA margin over sales of around 12.5%
The sustainability of cash generation over the 24-26 horizon is one of the objectives of the Strategic Plan, whose key lines of capital allocation are focused on creating value for the business and shareholders
The Strategic Plan details the investment and action plans for this period in innovation, sustainability and talent, the transversal axes of this growth plan
Arteche has set itself the goal of meeting the highest ESG standards, committing to reduce its total carbon footprint by 40%, increase by 33% the number of women in the first levels of management and define a roadmap to comply with the best governance practices in the market
Arteche, a global leader in equipment, components and solutions for the energy sector, today presented its new Strategic Plan for the years 2024 to 2026, at an event held in Madrid before investors, analysts and the media.
The new Strategic Plan, presented under the name Energizing Futures Together, establishes a roadmap for Arteche's growth strategy in its different business lines and geographical areas, based on its leadership position as a key player in a context in which the acceleration of the energy transition and investment in the energy sector are presented as a moment of opportunity to achieve ambitious and exciting goals. Likewise, within this plan, the diversification strategy and the commitment to ESG (Environment, Social and Corporate Governance) criteria are differentiating elements.
Key figures for the period 2024-2026
Looking ahead to 2026, Arteche's Strategic Plan aims to reach between 520 and 540 million euros in revenues, compared to the 401 million obtained in 2023.
Regarding the distribution of revenues by geographic areas, by 2026, Arteche expects the highest growth in market share to be centered in North America, a region that will account for 39% of total revenues. This will be followed by Europe, the Middle East and Africa (EMEA) with 35% of the total weight, Latin America (LATAM) with 14% and the Asia-Pacific region (APAC) with the remaining 11%.
As for EBITDA, which in 2023 stood at 40.7 million, thus reaching a percentage of 10.1% of total revenues, Arteche has set itself the target of increasing the margin by more than 200 points, i.e. in a range of 12.5-13.0% by 2026, reaching between 65 and 70 million euros. At the same time, the Group is confident of converting at least 30% of its EBITDA into free cash flow between 2024 and 2026.
For its part, Arteche will deploy an investment plan (capex) of 60 million in the period 2024-2026, focused on increasing its capacities in North America, as well as its activity in new product development and innovation and its efforts in digitalization, accounting for 4% of its year-on-year revenues.
Acquisitions, on the other hand, remain a key strategic line to accelerate the Group's growth and shareholder value creation. In this regard, the strategy on which the study of opportunities is based pivots on four key axes:
- Reinforce the leadership and profitability of the core businesses.
- Accelerate the desired positioning in Automation and Network Reliability.
- Incorporate key technologies to build the future.
- Strengthen our presence in the USA and Asia.
Therefore, for the period 2024-2026, the company will focus its efforts on continuing to grow inorganically, on maintaining shareholder remuneration equivalent to a pay-out of at least 30%, and finally on continuing to reduce the company's debt.
To lead the world market for instrument transformers and relays.
With this plan, Arteche aims to become the world's leading manufacturer of high-voltage instrument transformers and to be one of the three largest manufacturers of medium-voltage transformers in North America (NAM) and Europe, the Middle East and Africa (EMEA). The Group has also set itself the objective of positioning itself as a technological leader in digital and optical measurement with non-conventional instrument transformers.
Arteche also aims to maintain its position as the leading global relay manufacturer and to increase its regional market share in the automation and control sector.
Furthermore, the Strategic Plan also envisages growth in the Grid Reliability business line, a market in which Arteche is currently one of the ten global leaders in the power quality segment, and leader in the recloser segment in its markets of influence. Looking ahead to 2026, Arteche sees the United States and Australia as key markets for growth in this line.
ESG strategy: becoming a benchmark in compliance, care for the environment and for people
Arteche's commitment to ESG criteria is a key line within the Group's new Strategic Plan, in line with its objective of promoting sustainability and transformation within the energy sector and complying with the best standards of social commitment and corporate governance.
In this regard, for the period 2024-2026, Arteche has set itself the goal of reducing its carbon footprint by 40% with respect to the base figure of 2021, as well as increasing the percentage of energy consumption from renewable sources to represent 60% of its total consumption. These targets have been set in line with Arteche's commitment to achieve 100% renewable energy consumption and reduce its carbon footprint by 50% by 2030.
Equality is another major pillar of the Group's strategy. As part of its 2024-2026 Strategic Plan, Arteche will work to ensure that at least 33% of positions considered front-line management are occupied by women, and that 90% of the Group's jobs, including those in industrial facilities, are suitable for men and women equally. By 2030, Arteche expects that the actions focused on the incorporation and development of female talent that have been activated over the last few years will result in at least 40% of front-line management positions being represented by women and 100% of jobs being suitable for women and men equally.
In turn, Arteche has defined a Corporate Governance roadmap with a view to becoming a benchmark in its sector, as a result of its commitment to the highest standards.
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