Thomson Reuters (TRI) Q4 2024 earnings summary

Executive summary

• Achieved 7% full-year organic revenue growth, with the Big Three segments accelerating to 9% and comprising over 80% of total revenues.

• Q4 organic revenue grew 5%, recurring revenues exceeded 80% of total, and strategic acquisitions and divestitures optimized the portfolio.

• Strong adoption of generative AI offerings, with significant momentum in Westlaw Precision and Co-Counsel, and 18% of ACV now GenAI-enabled.

• Completed monetization of LSEG stake, $639 million in share repurchases, and a 10% dividend increase for 2025, marking the 32nd consecutive annual increase.

• Invested $1.6 billion in five acquisitions, including SafeSend for $600 million, Pagero, and others, while divesting FindLaw and two smaller non-core businesses.

Financial highlights

• Q4 revenues were $1,909 million (up 5% YoY); full-year revenues reached $7,258 million (up 7% YoY).

• Q4 adjusted EBITDA was $718 million (up 2%), margin 37.6%; full-year adjusted EBITDA was $2,779 million (up 4%), margin 38.2%.

• Q4 operating profit rose 29% to $722 million, while full-year operating profit fell 10% due to lower gains from business sales.

• Q4 diluted EPS was $1.30 (down 13% YoY); full-year diluted EPS was $4.89 (down 16% YoY); adjusted EPS for the year was $3.77 (up 7%).

• Free cash flow for 2024 was $1.83 billion, down 2% year-over-year.

Outlook and guidance

• 2025 organic revenue growth guided at 7%-7.5%, with adjusted EBITDA margin of ~39% and free cash flow of ~$1.9 billion.

• 2026 framework targets 7.5%-8% organic revenue growth, at least 50bps margin expansion, and free cash flow of $2.0-$2.1 billion.

• Big Three segments expected to grow revenue by approximately 9% in 2025 and 9.5% in 2026.

• Effective tax rate expected to rise to ~19% in 2025 and 2026 due to global minimum tax regulations.

• Q1 2025 organic revenue growth expected at 5–6%, with adjusted EBITDA margin near 40%.