adesso (ADN1) H2 2024 earnings summary

Executive summary

• Achieved group sales of €1.3 billion in 2024, up 14% year-over-year, driven almost entirely by organic growth and international expansion.

• EBITDA rose 23% to €98.3 million (excluding one-off effects), with margin improvement to 7.6% and H2 margin at 10.6%.

• Consolidated earnings increased to €10.2 million; earnings per share up 155% to €1.25.

• Share buyback program completed, repurchasing 1.9% of share capital for €10 million.

• Workforce grew by 12% on average, with year-end headcount growth slowing to 8% due to a hiring freeze.

Financial highlights

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

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

• Free cash flow reached €45.1 million, up 217% year-over-year, and free cash flow per share improved to €6.92.

• Net debt at €46.6 million, decreased slightly by €2 million; net working capital reduced by 8% to €162.8 million.

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

Outlook and guidance

• 2025 guidance: sales of €1.35–1.45 billion and EBITDA of €105–125 million, with margin expected to exceed 8%.

• Dividend proposal increased from €0.17 to €0.75 per share for 2024.

• Public sector expected to recover in H2 2025 after delayed budgets; SAP and IT services to offset weak automotive and manufacturing.

• Ongoing market demand in IT services anticipated despite recessionary environment.