Tinexta (TNXT) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 revenues reached €305.7 million, up 13.4% year-over-year, driven by both organic growth and acquisitions, with all business lines contributing.

• 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.

• The Group expanded its scope with several acquisitions, notably Defence Tech, and initiated a share buyback program.

• Net Financial Position (NFP) increased to €305.6 million from €102.0 million at FY2023, reflecting significant acquisition activity.

Financial highlights

• Revenues: €305.7 million (+13.4% vs PY); Adjusted EBITDA: €56.1 million (−1.5% vs PY); EBITDA margin: 18.3% (vs 21.1% PY).

• Reported EBITDA: €45.5 million (−11.1% vs PY), including €7.4 million non-recurring items; margin: 14.9%.

• Adjusted net profit stood at €19.7 million, down 28.9% year-over-year; adjusted Free Cash Flow at €38.1 million, with LTM Free Cash Flow over €54.8 million.

• Net financial position at €305.6 million, reflecting acquisitions including Defence Tech and ABF.

• 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.