Intertek Group (ITRK) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 results with earnings ahead of market expectations, robust revenue and margin growth, and record adjusted free cash flow.

• Operating margin increased by 100 basis points to 17.4%, with EPS up 15.2% at constant currency.

• ROIC reached 22.4%, up 250 basis points, and record adjusted cash flow of GBP 789 million.

• Announced GBP 350 million share buyback and raised medium-term margin targets to 18.5%+.

• Increased dividend by 40.1%, reflecting confidence in future growth.

Financial highlights

• Group revenue grew 6.6% at constant currency to GBP 3.4 billion; like-for-like revenue up 6.3%.

• Operating profit rose 13% at constant rates to GBP 590 million; operating margin at 17.4%.

• Diluted EPS up 15.2% at constant rates; full-year dividend up 40.1% to 156.5p.

• Free cash flow increased 8% to GBP 409 million; net debt reduced by GBP 111 million to GBP 500 million.

• Net debt to EBITDA ratio improved to 0.7x.

Outlook and guidance

• Expect robust financial performance in 2025 with mid-single digit like-for-like revenue growth across most divisions.

• Targeting further margin progression and strong free cash flow; CapEx guidance GBP 135-145 million.

• Net debt expected in the range of GBP 470-520 million before M&A, FX, or buyback impacts.

• Medium-term operating margin target raised to 18.5%+.