Eurofins Scientific (ERF) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenues of €6,951m in FY 2024, up 6.7% year-over-year, surpassing pre-pandemic and COVID-19 peaks, with strong margin and cash flow growth.

• Adjusted EBITDA rose 13.8% to €1,552m, margin improved 140bps to 22.3%; net profit increased 32% to €405m; EPS up 41% to €1.87.

• Organic growth in the Core Business was 4.7%, with softness limited to less than 10% of Group revenues.

• Five-year investment phase nearing completion, with significant CapEx in infrastructure and digitalization expected to yield further benefits by 2027.

• Closed 31 acquisitions and initiated 18 start-ups, expanding technological capabilities and global footprint.

Financial highlights

• Revenues grew 6.7% year-over-year to €6,951m; organic growth at 4.7%.

• Adjusted EBITDA margin increased by 140–180bps to 22.3%; net profit up 32%; EPS up 41%.

• Free cash flow to the firm surged 69% to €801m; cash conversion at 56%.

• Net working capital intensity reduced to 3.8% of revenues; net debt at €2,996m with leverage at 1.9x.

• CapEx reduced to 5.2–7.5% of revenues; dividend of €0.50/share paid, €0.60 proposed (+20%).

Outlook and guidance

• Maintains long-term organic growth target of 6.5% on average, with mid-single-digit guidance for 2025 and €250m in acquisition revenues.

• Margin target of 24% by 2027 remains in place, supported by ongoing efficiency gains and digitalization.

• Free cash flow conversion target set at 50%+, with FCFF before investment in owned sites targeted to exceed €954m.

• Financial leverage to remain within 1.5–2.5x, aiming for the lower end by 2027.

• Progression on margin and cash flow expected to be stronger in H2 2025.