Quad/Graphics (QUAD) Q4 2024 earnings summary

Executive summary

• Net sales declined to $2.7 billion in 2024, down from $3.0 billion in 2023, due to lower paper, print, and agency solution sales, but results met expectations and supported strong cash generation for debt reduction, business investment, and shareholder returns.

• Adjusted EBITDA was $224 million (8.4% margin), up from 7.9% in 2023, with productivity gains and cost reductions offsetting sales declines.

• Net debt reduced to $350 million and leverage to 1.6x, a $684 million reduction since 2020.

• Quarterly dividend increased by 50% to $0.075 per share, with share repurchases resumed and opportunistic buybacks totaling 11% of shares since Q2 2022.

• Transformation to a marketing experience company advanced, with key client wins (Titleist, Spirit of Gallo, G.O.A.T. Foods) and a pending sale of European operations.

Financial highlights

• Q4 2024 net sales were $708 million, down 10.1% year-over-year; full-year net sales were $2.7 billion, down 9.7%.

• Q4 adjusted EBITDA was $63 million (margin 8.8%), and full-year adjusted EBITDA was $224 million (margin 8.4%).

• Adjusted diluted EPS rose to $0.36 in Q4 and $0.85 for the year, up from $0.23 and $0.52, respectively, in 2023.

• Free cash flow for 2024 was $56 million, down from $77 million in 2023, mainly due to lower operating cash flow.

• Asset sales generated $71 million in cash in 2024.

Outlook and guidance

• 2025 organic net sales expected to decline 2%-6% (midpoint -4%), excluding $153 million from the European divestiture.

• 2025 adjusted EBITDA guidance is $180-$220 million (midpoint $200 million), with margin projected at 8.3%.

• Free cash flow expected at $40-$60 million, with higher capital expenditures of $65-$75 million and continued low net debt leverage (targeting 1.5x by year-end 2025).

• Mid-term outlook anticipates a return to net sales growth between 2027 and 2028.