Thomson Reuters (TRI) Q4 2024 earnings summary

Executive summary

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

• Adjusted EBITDA increased 4% to $2.8 billion for the year, with a margin of 38.2%.

• Strong momentum in generative AI offerings, with significant product launches and enhancements across the portfolio.

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

• Five acquisitions totaling $1.6 billion, including Pagero, SafeSend, Materia, and divestiture of FindLaw and two smaller businesses.

Financial highlights

• Q4 revenues rose 5% to $1,909 million; full-year revenues up 7% to $7,258 million.

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

• Q4 operating profit up 29% to $722 million; full-year operating profit down 10% due to lower gains from business sales.

• Q4 diluted EPS fell 13% to $1.30; full-year diluted EPS down 16% to $4.89, reflecting higher tax expense and lower gains from investments.

• Free cash flow for 2024 was $1.83 billion, exceeding the $1.8 billion outlook.

Outlook and guidance

• 2025 organic revenue growth guided at 7%-7.5%; total revenue growth 3%-3.5%; adjusted EBITDA margin forecasted at ~39%.

• Big Three segments expected to grow revenue by ~9% in 2025.

• 2026 organic revenue growth outlook raised to 7.5%-8%, with Big Three at ~9.5%, and adjusted EBITDA margin expansion by at least 50bps.

• Free cash flow expected at ~$1.9 billion in 2025 and $2.0-$2.1 billion in 2026.

• Effective tax rate on adjusted earnings expected at ~19% for 2025 and 2026.