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, with adjusted EBITDA up 17.0% to €294.1 million and margin at 64.1%.

• Adjusted net income was €183.5 million (+11.8%), reported net income €164.8 million (+17.9%), and adjusted EPS €1.80 (+13.9%).

• Growth was fueled by both non-volume and record volume-related activities, especially in cash equity, fixed income, forex, power, and commodities.

• Strategic initiatives included consolidation of settlement, the acquisition of Admincontrol, and the launch of the European Common Prospectus.

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

Financial highlights

• Non-volume-related revenue accounted for 57% of total, with Securities Services at €83.4 million (+6.8%) and Capital Markets and Data Solutions at €157.4 million (+6.6%).

• Volume-related revenue: FICC Markets at €90.7 million (+25.1%), Equity Markets at €108.4 million (+18.0%), and cash equity trading and clearing up 22.5% to €94 million.

• Net Treasury Income surged 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 2025 remains at €670 million (constant perimeter, excluding new acquisitions).

• Net financing expense expected to be around €6 million per quarter for the next couple of quarters.

• Effective tax rate expected to remain around 27% for full year 2025.

• Dividend of €2.90 per share proposed, a 50% payout of reported net income.

• Targeting above 5% CAGR in revenue and EBITDA by 2027, with continued investment in growth and integration.