Imerys (NK) H2 2024 earnings summary

Executive summary

• 2024 revenue reached €3.6 billion, 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.

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

• Board proposes a 7.4% increase in dividend to €1.45 per share, 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 and price increases.

• Net financial debt at year-end was €1,275 million, or 1.9x adjusted EBITDA, maintaining investment grade ratings.

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

• High liquidity with €1,010 million in credit lines and €602 million cash at year-end.

Outlook and guidance

• Expects further volume growth in 2025 despite economic uncertainty, supported by cost control, cash generation, and recent capacity investments.

• Guidance for 2024 adjusted EBITDA was €670–690 million; 2025 capex (excluding lithium) expected below €280 million.

• Recovery expected in construction and consumer goods, especially in the U.S. and Europe as interest rates drop.

• Automotive and industrial markets remain weak, with recovery delayed to late 2025.