Italian brake maker Brembo raised its full-year revenue forecast on Tuesday, saying it was feeling "braver" about its orders after posting a double-digit percentage increase in the first quarter and lifting its shares.
Brembo said it now expects revenue growth of about 10 percent in 2023, compared with its previous guidance in March for a mid single-digit increase.
Brembo had become increasingly confident in recent months, Executive Chairman Matteo Tiraboschi said.
"Our order book is full, there is great buzz on the market, all out plants are running at full capacity," he said. "This is allowing us to be a bit braver."
Brembo forecast that its margin on earnings before interest, taxes, depreciation and amortization (EBITDA), in percentage terms, would be in line with in that of 2022.
In the first quarter, Brembo's EBITDA rose 12 percent to 168.3 million euros ($185 million).
Brembo also said it was investing 500 million euros to expand its production capacity in Mexico, China and Poland, serving three continents.
In Poland, it Brembo said it is building a cast iron foundry in Dabrowa Gornicza, in Mexico it is completing the expansion of its plant focused on manufacturing brake callipers in Escobedo, while in China it will expand the production and research areas of its Nanjing site.
Tiraboschi said those investments were part of Brembo's business plan and would span three to four years.
Capital expenditure planned for 2023 was 350 million euros, including the share of those three investments for the current year, he added.