Tinexta (TNXT) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €305.7 million, up 13.4% year-over-year, driven by both organic growth and acquisitions, with strong Q3 performance and expectations for a significant Q4 contribution.

• Adjusted EBITDA was €56.1 million, down 1.5% year-over-year, with margin pressure in Cybersecurity and Business Innovation, but strong Digital Trust performance.

• Net profit from continuing operations fell to €3.0 million, a 75.5% decrease year-over-year, impacted by higher amortization, financial charges, and non-recurring items.

• Major acquisitions included ABF Group, Defence Tech, Lenovys, Camerfirma Colombia, and Warrant Funding Project, expanding the Group's international presence and capabilities.

• Board approved a share buyback program, signaling confidence in the company and its shares.

Financial highlights

• Revenues: €305.7 million (+13.4% year-over-year); Adjusted EBITDA: €56.1 million (-1.5%); EBITDA: €45.5 million (-11.1%).

• Adjusted net profit from continuing operations was €19.7 million, down 28.9% year-over-year.

• Adjusted free cash flow from continuing operations was €38.1 million, down 5.3% year-over-year; LTM Adjusted FCF at €54.8 million.

• Net financial debt rose to €305.6 million from €102.0 million at year-end 2023, mainly due to acquisitions.

• Q3 2024 revenues were €102.7 million (+18.0%), with Adjusted EBITDA of €21.6 million (+13.8%).

Outlook and guidance

• 2024 consolidated revenues expected to grow 18–20% year-over-year; 14–16% excluding Defence Tech.

• Adjusted EBITDA forecasted to increase 14–16% year-over-year; 10–12% excluding Defence Tech.

• Leverage ratio (NFP/Adjusted EBITDA) projected at 2.8x (2.7x pro forma); 2.3x excluding Defence Tech.

• Management notes forecasts are subject to uncertainties and external factors.