Nexi (NEXI) Q4 2024 earnings summary

Executive summary

• FY24 revenues grew 5.1% year-over-year to €3,514 million, with Merchant Solutions up 6.3% and EBITDA up 7.1%, expanding margin by ~101 basis points.

• Excess cash generation rose 19% to €717 million, and normalized EPS increased 11% to €0.59, reflecting buyback effects.

• Upgraded to Investment Grade by Fitch in December 2024; leverage ratio reduced to 2.7x EBITDA (2.4x pre-buyback).

• Announced a €600 million capital return for 2025 (+20% year-over-year), split equally between dividends (€0.25/share) and buybacks.

• Continued focus on integrated payments, software for SMEs, and leveraging GenAI and strategic partnerships for operational efficiency.

Financial highlights

• Net revenues reached €3,514 million in FY24, up 5.1% year-over-year; EBITDA at €1,863 million, up 7.1%.

• EBITDA margin expanded to 53% for FY24 and 54% in Q4, up 101 and 153 basis points year-over-year.

• Normalized net profit was €731 million (+4.1% year-over-year); normalized pre-tax profit grew 10% to €1,153 million.

• CapEx decreased by 10.7% to €443 million (13% of net revenues), with further reductions expected.

• Integration and transformation costs fell 20% to €92.9 million, with a one-off severance charge of €164 million.

Outlook and guidance

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

• Extraordinary effects (bank M&A, contract renegotiations) concentrated in 2025, expected to ease in 2026.

• Shareholder return for 2025 proposed at €600 million (10% yield), split equally between dividends (€0.25/share) and buybacks.

• Underlying growth for 2025 expected at 5-6%, with cash-to-digital conversion continuing at 1-2% per year in key markets.