Catalent (CTLT) Q4 2024 earnings summary

Executive summary

• Q4'24 net revenue reached $1.30 billion, up 23% as reported and 24% in constant currency year-over-year.

• Organic, constant-currency net revenue grew 24% in Q4'24; excluding COVID-related revenue, Q4'24 net revenue rose 29% year-over-year.

• Fiscal 2024 net revenue was $4.38 billion, up 3% as reported; excluding COVID-related revenue, FY'24 net revenue increased 13% year-over-year.

• Q4'24 net earnings were $23 million, reversing a net loss of $110 million in Q4'23; FY'24 net loss was $(1.04) billion.

• Pending acquisition by Novo Holdings in an all-cash transaction valued at $16.5 billion, expected to close by end of 2024.

Financial highlights

• Q4'24 Adjusted EBITDA was $305 million (23% margin), up 150% year-over-year; FY'24 Adjusted EBITDA was $703 million, up 1%.

• Q4'24 Adjusted Net Income was $118 million ($0.65 per diluted share), up from $1 million ($0.02 per share) in Q4'23.

• Q4'24 EBITDA from operations was $233 million, compared to a loss of $(7) million in Q4'23.

• FY'24 gross margin was $953 million, down 9% year-over-year; FY'24 included $687 million in goodwill impairment charges.

• Generated positive free cash flow exceeding $100 million in Q4'24; FY'24 operating cash flow was $268 million.

Segment performance

• Q4'24 Biologics net revenue grew 51% year-over-year; segment EBITDA rose 735% to $136 million.

• Q4'24 Pharma and Consumer Health net revenue increased 7%; segment EBITDA up 22% to $217 million.

• FY'24 Biologics net revenue declined 2% year-over-year; segment EBITDA down 2%.

• FY'24 Pharma and Consumer Health net revenue rose 6%; segment EBITDA up 9%.

• In Q4'24, Biologics contributed 46% and Pharma/Consumer Health 54% of total net revenue.