Prosegur Compañía de Seguridad (PSG) Q4 2024 earnings summary

Executive summary

• Revenue grew 13.9% year-over-year to EUR 4.9 billion, with organic growth exceeding 7% in all regions and resilience amid Argentina's economic turmoil and German labor strikes.

• EBITA increased 17% to EUR 328 million, with margin recovery in Cash and Security segments.

• Net profit rose 23.7% year-over-year, supported by higher EBIT and a lower fiscal rate.

• Operating cash flow improved 16% year-over-year, reaching EUR 327 million.

• Continued focus on innovation, transformation products, and ESG principles integrated into strategy.

Financial highlights

• Total sales reached EUR 4.9 billion, up 13.9% year-over-year, with nearly all growth organic.

• EBITDA rose 17% to EUR 328 million, with margin recovery in key segments.

• EBIT rose 21.7% to EUR 290 million; margin at 5.9%.

• Free cash flow increased to EUR 133 million from EUR 115 million in FY 2023.

• Net financial debt at EUR 1,243 million; net debt/EBITDA at 2.3x.

Outlook and guidance

• Expectation of continued leverage reduction, with net debt/EBITDA targeted between 2.0 and 2.2 times for 2025.

• Anticipate strong recovery in Argentina and further margin improvements in security and alarm businesses.

• Positive recurring cash generation and growth prospects in Alarms.

• Transformation products in Cash expected to remain above 32% of sales.

• Continued focus on margin recovery and efficiency in all segments.