adesso (ADN1) H2 2024 earnings summary

Executive summary

• Achieved 14% organic sales growth in 2024, reaching approximately EUR 1.3 billion, outpacing market growth and supported by international expansion.

• EBITDA rose 23% year-over-year to EUR 98.3 million (excluding one-off effects), with margin improving to 7.6% and a strong H2 margin of 10.6%.

• Net income increased to EUR 10.2 million, with EPS at EUR 1.25, both significantly higher than the prior year.

• Share buyback program completed, acquiring 1.9% of shares for EUR 10 million, supporting share price growth.

• Dividend proposal increased to EUR 0.75 per share for 2024, reflecting optimism.

Financial highlights

• Sales grew 14% year-over-year to EUR 1,297.0 million in 2024, driven almost entirely by organic growth.

• EBITDA margin improved to 7.6% (excluding one-off effects), with operating cash flow up 44% to EUR 110.6 million.

• Free cash flow per share improved to EUR 6.92, with total free cash flow at EUR 45.1 million, up 217% year-over-year.

• Net working capital reduced by 8% to EUR 162.8 million; equity ratio decreased to 24.2%.

• Return on equity averaged 12.4% over five years; 2024 ROE at 5.3%.

Outlook and guidance

• 2025 revenue guidance set at EUR 1.35–1.45 billion, representing 4–12% growth.

• EBITDA forecasted at EUR 105–125 million, with margin expected to improve to above 8% due to higher utilisation and reduced investments.

• Dividend proposal increased from EUR 0.17 to EUR 0.75 per share.

• Anticipates slow start in public sector due to delayed budgets, but expects recovery in H2.

• SAP and shoring initiatives in India expected to drive margin improvements.