Broadridge Financial Solutions (BR) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered strong financial and operational results, with recurring revenues up 6% to $4.22 billion and total revenues up 7% to $6.51 billion, driven by digitization, regulatory change, and innovation across governance, capital markets, and wealth management.

• Record closed sales reached $342 million, up 39% year-over-year, with robust performance across all business segments.

• Adjusted EPS rose 10% to $7.73 and diluted EPS increased 11% to $5.86 for the year.

• The business model's resilience was highlighted by 94% recurring fee revenues and a $450 million sales backlog.

• Board approved a 10% dividend increase to $3.52 per share, marking the 18th consecutive annual increase.

Financial highlights

• Fiscal 2024 recurring revenue grew 6% to $4.22 billion (constant currency, organic); total revenues were $6.51 billion, up 7%.

• Adjusted operating income increased 9% to $1.30 billion, with a full-year margin of 20%, up 20 basis points year-over-year.

• Q4 recurring revenue grew 5% to $1.33 billion; Q4 total revenues were $1.94 billion, up 6%.

• Free cash flow reached $943 million, with conversion at 102%.

• Net earnings for the year grew 11% to $698 million; adjusted net earnings up 10% to $921 million.

Outlook and guidance

• Fiscal 2025 guidance: 5%-7% organic recurring revenue growth (constant currency), 8%-12% adjusted EPS growth, and $290M-$330M in closed sales.

• Adjusted operating income margin expected at ~20%, with over 50 basis points of core margin expansion; GAAP margin at ~17%.

• Q1 2025 earnings expected to be 10%-11% of full-year adjusted EPS, at the low end of historical range.

• On track to deliver 8-12% adjusted EPS CAGR and 50+ bps annual margin expansion through FY26.