Nexi (NEXI) Q1 2025 earnings summary

Executive summary

• Revenues increased by 3.7% year-over-year to €810.2 million in Q1 2025, with Merchant Solutions up 4.5% and Issuing Solutions up 3.3%.

• EBITDA grew 7.1% year-over-year to €386.9 million, with margin expanding by 149 basis points to 48%, driven by strong cost control.

• 2025 guidance confirmed for low to mid-single digit net revenue growth, at least 50 basis points EBITDA margin expansion, and excess cash generation of at least €800 million.

• Announced €600 million capital return to shareholders in 2025, split equally between dividends and share buybacks.

• Upgraded to Investment Grade by S&P and Fitch, with Moody’s outlook positive and €2.9 billion refinancing completed.

Financial highlights

• Net revenues: €810.2 million (+3.7% year-over-year); EBITDA: €386.9 million (+7.1% year-over-year); EBITDA margin: 48% (+149 bps year-over-year).

• Cost growth limited to 0.8% year-over-year, with personnel costs down 5.4% and operating costs up 6.8%.

• Net Financial Debt reduced to €4,790 million; Net Financial Debt/EBITDA improved to 2.5x from 2.7x at FY24.

• Leverage reduced from 3.6x in 2021 and 6.5x in earlier years.

• Excess cash generation expected to reach at least €800 million in 2025, up from €700 million in 2024.

Outlook and guidance

• 2025 guidance reaffirmed: low to mid-single digit net revenue growth, at least 50 basis points EBITDA margin expansion, and excess cash generation of at least €800 million.

• Q1 expected to be the strongest quarter, with softer top-line growth in subsequent quarters due to known client and pricing effects.

• Macro environment viewed cautiously, but no material impact on volume trends observed.

• Dividend of ~€300 million and share buy-back of ~€300 million planned for 2025, totaling ~€600 million returned to shareholders (+20% vs 2024).