Elis (ELIS) H2 2024 earnings summary

Executive summary

• Achieved record 2024 financial performance with revenue up 6.1% to €4,573.7 million and all key financial KPIs at historic highs.

• Adjusted EBITDA rose 9.2% to €1,609.8 million, margin up 100 bps to 35.2%; adjusted EBIT up 7.3% to €733 million.

• Net income increased 29% to €337.8 million; headline net income per share up 3.1% to €1.76.

• Free cash flow grew 14.1% to €346.4 million; leverage ratio improved to 1.85x.

• Announced new capital allocation policy with €150 million share buyback and proposed €0.45 per share dividend (+5%).

Financial highlights

• Revenue up 6.1% year-over-year, with 5.2% organic growth; adjusted EBITDA margin at 35.2% (+100 bps); adjusted EBIT margin at 16% (+20 bps).

• ROCE increased 60 bps to 14.5%; free cash flow up 14% to €346.4 million.

• M&A contributed 1.2% to revenue growth, mainly from Dutch acquisitions; FX had a -0.3% impact.

• Cleanroom and pest control businesses delivered double-digit organic growth, with cleanroom revenue up 11% and pest control up 24%.

• Debt profile remains well-diversified with €1.5 billion liquidity and extended maturities; Moody’s upgraded credit rating to Baa3.

Outlook and guidance

• 2025 organic revenue growth expected slightly below 4%, with a -0.3% calendar effect.

• Adjusted EBITDA margin, EBIT margin, EPS, and free cash flow all expected to be slightly up; leverage to decrease by ~0.1x.

• €150 million share buyback and €0.45 per share dividend planned for 2025.

• Pricing and volume expected to contribute equally to growth in 2025; wage inflation expected at ~4%.

• Hospitality expected to rebound in 2025, with easier comps post-Olympics.