Imerys (NK) H2 2024 earnings summary

Executive summary

• 2024 revenue reached €3,605 million, up 1% organically, with Q4 marking the third consecutive quarter of organic growth (+3.5% year-over-year).

• Adjusted EBITDA rose 11.4% like-for-like to €675 million, with margin up 110 bps to 18.7%, in line with guidance.

• Net income from continuing operations increased 8.2% to €262 million; Group share net income was impacted by a non-cash translation reserve loss from asset disposal.

• Free operating cash flow before strategic capex was €209 million; reported at €136 million after strategic investments.

• Proposed dividend of €1.45 per share, a 7.4% increase, maintaining a 47% payout ratio.

Financial highlights

• Adjusted EBITDA margin improved to 18.7% (+110 bps year-over-year); Q4 adjusted EBITDA up 13.9% like-for-like.

• Q4 2024 revenue grew 3.5% organically, driven by positive volumes (+2.1%) and price increases (+1.4%).

• FY 2024 organic revenue growth was 0.9%, with volumes up 1.1% and prices stabilizing at -0.3%.

• Net financial debt to adjusted EBITDA was 1.9x at year-end 2024; investment grade ratings confirmed.

• Net income, Group share, was -€95 million due to a non-cash loss from translation reserve recycling after asset disposal.

Outlook and guidance

• Expects further volume growth in 2025 despite ongoing economic uncertainty, with focus on cost control, cash generation, and leveraging recent capacity investments.

• Anticipates positive pricing in 2025, with mechanical uplift from Q4 2024 price increases.

• Recovery expected in construction and consumer goods, especially in the U.S. and Europe as interest rates drop; automotive recovery may take longer.

• No formal EBITDA guidance provided early in the year due to market uncertainties.

• 2025 capex (excluding lithium) expected below €280 million.