Growth International (AFN) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 adjusted EBITDA of $78 million, up 7% year-over-year, with full-year adjusted EBITDA at $265 million, the second-best in company history.

• Revenue for 2024 was $1.4 billion, with international business contributing a record $525 million, 37% of total revenue.

• Diversified and resilient business model, with strong international exposure and a focus on sustainability.

• Commercial segment strength offset Farm segment weakness, especially in North America.

• Declared Q1 2025 dividend of $0.15 per share, annualized at $0.60.

Financial highlights

• Q4 consolidated revenue was $381 million, with adjusted EBITDA margin expanding to 20.5%; full-year adjusted EBITDA margin was 18.9%.

• Free cash flow for 2024 was $79 million, up 61–62% year-over-year.

• Net debt leverage ratio at year-end 2024 was 3.1x, up from 2.8x the previous year.

• Q4 included $30 million in transaction and transitional costs, mainly legal, restructuring, and advisory fees.

• Repurchased 201,400 shares for $11 million under NCIB.

Outlook and guidance

• 2025 full-year adjusted EBITDA guidance is at least $225 million; Q1 guidance is $25–$30 million.

• Net debt leverage ratio may temporarily rise to 3.5x in 2025 before targeting 2.5x post-2025.

• Commercial segment expected to remain strong, while North America Farm segment is forecasted to be soft in H1 2025 with limited visibility for H2.

• Guidance excludes potential impact of new U.S.-Canada tariffs; 10% of 2025 revenue exposed to cross-border trade risk.

• Medium-term target for international revenue is 40–45% of total revenue.