Mattel (MAT) Q4 2024 earnings summary

Executive summary

• Achieved 2024 priorities: profit growth, gross margin expansion, and strong free cash flow, with Q4 topline growth and strong operational execution, outperforming expectations despite a tough Barbie movie comparison.

• Executed multi-year strategy to grow IP-driven toy business and expand entertainment, with 14–16 films in development/production and strong digital and live event growth.

• $83 million in cost savings realized in 2024, on track for $200 million by 2026; $400 million in share repurchases; balance sheet strengthened with $1.4 billion in cash.

• Global toy industry declined slightly in 2024 but outperformed expectations, reinforcing confidence in long-term growth.

• Full-year net income surged 153% to $542M; EPS increased to $1.58 from $0.60.

Financial highlights

• FY 2024 Net Sales: $5,380M, down 1% year-over-year; Q4 Net Sales: $1,646M, up 2–3% in constant currency.

• FY 2024 Adjusted Gross Margin: 50.9%, up 340 bps; Q4 Adjusted Gross Margin: 50.8%, up 200 bps.

• FY 2024 Adjusted EBITDA: $1,058M, up 12% year-over-year; Q4 Adjusted EBITDA: $249M, up 6%.

• FY 2024 Adjusted EPS: $1.62, up 32% year-over-year; Q4 Adjusted EPS: $0.35, up 21%.

• Free cash flow for 2024 was $598M; cash balance at year-end $1,388M; $400M in share repurchases.

Outlook and guidance

• 2025 net sales expected to grow 2–3% in constant currency; adjusted EPS guidance: $1.66–$1.72, up 2–6%.

• Adjusted gross margin expected to be comparable to 2024; free cash flow targeted at ~$600M; $600M in share repurchases targeted for 2025.

• Guidance includes impact of new U.S. tariffs and mitigating actions such as supply chain optimization and potential pricing.

• Adjusted operating income for 2025 targeted at $740–$765M; $60M in additional cost savings targeted.