GFT Technologies (GFT) Q4 2024 earnings summary

Executive summary

• Achieved 10% revenue growth in 2024, reaching EUR 870.92 million, exceeding guidance and driven by both organic and M&A contributions.

• Adjusted EBIT rose 6% to EUR 77.44 million, with margin at 8.9%; guidance met, including a EUR 9.8 million one-off from a Brazilian court case.

• Major new clients and strategic contracts secured in Germany, Mexico, and the US; 116 new qualified clients, mainly from Sophos acquisition.

• Launched and rapidly scaled GFT AI Impact, a generative AI product, with 25 clients and 315 licenses by year-end, driving productivity gains.

• Largest M&A in company history: Sophos acquisition added EUR 55 million revenue and ~1,400 experts, expanding LATAM presence and delivery capacity.

Financial highlights

• Revenue grew 10% year-over-year to EUR 870.92 million; order backlog up 33% to EUR 503.12 million.

• Adjusted EBIT up 6% to EUR 77.44 million; adjusted EBIT margin 8.9% (down from 9.3%).

• Free cash flow (adjusted) reached EUR 55.6 million, the highest in company history; operating cash flow rose 79% to EUR 72.42 million.

• Net cash position declined to minus EUR 42.53 million, mainly due to the Sophos acquisition and higher dividend payout.

• Net income declined 4% to EUR 46.48 million; EPS down 4% to EUR 1.77.

Outlook and guidance

• 2025 revenue guidance set at EUR 930 million (+7%), with adjusted EBIT at EUR 68 million (excluding 2024's one-off, comparable to EUR 67 million).

• Free cash flow milestone for 2025 is EUR 45 million, with net debt/EBITDA guided at 0.2.

• Utilization expected at 90.5% for 2025.

• Midterm (2029) targets: EUR 1.5 billion revenue (11.5% CAGR), 9.5% adjusted EBIT margin, focus on organic growth and selective M&A.

• Profitability expected to improve from 2026 as strategic initiatives mature.