Euronext (ENX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 14.1% year-on-year to €458.5 million, driven by strong non-volume-related activities and exceptional market volatility.

• Adjusted EBITDA increased 17% to €294.1 million, with a margin of 64.1%, up 1.6 percentage points year-on-year.

• Adjusted net income grew 11.8% to €183.5 million; reported net income up 17.9% to €164.8 million; reported EPS up 20% to €1.62 per share; adjusted EPS at €1.80.

• Strategic initiatives included the launch of the European Common Prospectus, consolidation of settlement for Amsterdam, Paris, and Brussels equities by September 2026, and the acquisition of Admincontrol to expand SaaS offerings.

• Net operating cash flow reached €190.6 million; net debt to EBITDA at 1.4x.

Financial highlights

• Non-volume-related revenue accounted for 57% of total, covering 158% of underlying operating expenses (excl. D&A).

• Volume-related revenue surged, with FICC Markets at €90.7 million (+25.1%) and Equity Markets at €108.4 million (+18.0%).

• Net Treasury Income jumped 58.8% to €18.6 million, reflecting clearing expansion and internalisation.

• Underlying operating expenses (excl. D&A) rose 9.1% to €164.5 million, partly due to acquisitions.

• Net cash flow from operating activities was €190.6 million, up from €184.6 million in Q1 2024.

Outlook and guidance

• Underlying cost guidance for FY 2025 set at €670 million, excluding new acquisitions.

• Expects net financing expense of approximately €6 million per quarter for the next couple of quarters, reflecting higher leverage and cost of debt.

• Dividend of €2.90 per share proposed, up 16.9% year-on-year and representing a 50% payout of reported net income.

• Targeting above 5% CAGR in both top-line and EBITDA by 2027.

• Strategic plan 'Innovate for Growth 2027' targets further market integration, SaaS expansion, and post-trade optimisation.