Brembo runs with production start of Sensify braking system

(Il Sole 24 Ore Radiocor) - Fly Brembo at Piazza Affari (FTSE MIB ) after starting production of Sensify, a software-managed intelligent braking system with autonomous control of the four-wheel electric pulse to replace the hydraulic transmission. The automotive components company announced earlier today that the new braking system will be standard on 100 per cent of vehicles in a programme for a 'major global vehicle manufacturer' whose name was not disclosed. Brembo also said it had recently signed additional contracts with new customers, expecting to equip hundreds of thousands of vehicles per year without specifying a timeline.

The news, writes Equita, 'comes about two years later than we had commented on in one of our studies published on 30 January 2023, but it is important that the product is soon available on the market in order to be able to field test the end customer response and quantify the potential upside'. The company does not provide any details on the economics of this business. In 2023, Equita had hypothesised that Sensify could imply a benefit in terms of higher turnover, with EUR 1,000 per vehicle compared to EUR 300-400 for the sale of car discs and calipers, higher margin, with a 20% higher Ebitda (from the average 17% recorded by the group over the last three years), and in terms of lower capital intensity compared to the average 12% capex on turnover over the last three years, as it is a software-related business. According to the experts, in any case, the impact on economic results will be "modest" in 2026 and "more visible" from 2027. "Brembo is one of the few component manufacturers that, despite being exposed to the risks of the current macroeconomic/geopolitical context, which is particularly penalising for the automotive sector, has company-specific growth drivers that improve its visibility: in addition to Sensify, there are also coated discs (with an above-average price and margin), which from November will be compulsory for cars sold in Europe built on new platforms," note from Equita.

For the analysts of Banca Akros, the introduction of Sensify is also positive, however, they believe 'that the impact on Brembo's income statement will not be particularly significant before a couple of years, sincethe adoption of Sensify will probably occur gradually'. For the experts, 'the goal of equipping hundreds of thousands of vehicles' is 'achievable, and will probably be exceeded in the long run', as they estimate Brembo's production capacity to be in the millions of units.