Exosens (EXENS) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue grew 35% to €394.1m, surpassing IPO guidance, with 25% organic growth and strong performance in both core and acquired businesses.

• Adjusted EBITDA rose 38% to €118.5m, with margin expanding to 30.1%, crossing the 30% threshold for the first time.

• Net profit increased 67% year-over-year to €31m, with free cash flow of €55m and cash conversion at 74%.

• Significant deleveraging post-IPO, with net debt/EBITDA at 1.2x, and a proposed €0.10 per share dividend for FY 2024.

• Investments in R&D (7.7% of sales) and capacity expansion, including a new US factory, to meet rising demand, especially in defense.

Financial highlights

• Revenue reached €394.1m, up 35% year-over-year; like-for-like growth was 25%.

• Adjusted gross margin improved by 320bps to 48.1%.

• Adjusted EBIT up 44% to €95.3m, margin at 24.2%.

• Free cash flow nearly doubled to €55m, with a cash conversion ratio of 74%.

• R&D investment at €30.4m, 7.7% of sales, supporting innovation and future growth.

Outlook and guidance

• 2025 revenue expected to grow in the high teens percentage versus 2024; adjusted EBITDA to grow in the low 20s percentage.

• 2024–2026 adjusted EBITDA CAGR projected in the high teens; cash conversion ratio targeted at 70–75%.

• CapEx plan includes €20m for capacity expansion in Europe and the US over 2025–2026.

• Leverage ratio to be maintained around 2x, with continued selective M&A strategy.

• Ongoing investments in capacity expansion in Europe and the first US plant to capture defense market demand.