Wendel (MF) Q3 2024 TU earnings summary

Executive summary

• Fully diluted NAV per share rose 13.7% year-to-date to €184.5 at September 2024, driven by value creation in principal investments and asset management, with major acquisitions of Monroe Capital and Globe Educate accelerating strategic transformation.

• Asset management platform manages approximately €40bn pro forma with Monroe, with fee-paying AUM up 19% year-to-date and €1.8bn raised.

• Portfolio rotation included the sale of Constantia Flexibles, partial sale of Bureau Veritas, and new investments in Globe Educate and Monroe Capital.

• Priorities include value creation on existing assets, building the private asset management platform, and maintaining a solid financial structure.

Financial highlights

• Consolidated 9-month 2024 revenue: €5,918.1m, up 14.6% reported and 8.9% organic year-over-year.

• Bureau Veritas delivered 10.4% organic growth over 9 months, with Q3 at 13%, and share price up 34.3% year-to-date.

• Stahl posted stable year-to-date performance (-0.4% organic), but Q3 was softer at -3.1% to -4.7% due to auto and luxury sector weakness.

• CPI and ACAMS reported strong organic growth of 8.1% and 8.6% respectively, with ACAMS boosted by new leadership and product launches.

• Asset management revenues at IK Partners grew double-digit, driven by higher market multiples and fundraising.

Outlook and guidance

• Management expects to exceed the 2027 fee-related earnings (FRE) target of €150m, driven by Monroe and IK Partners' growth.

• Bureau Veritas raised 2024 guidance: organic revenue growth of 9–10%, improved adjusted operating margin at constant FX, and cash conversion above 90%.

• Focus remains on value creation, building the asset management platform, and sustaining double-digit total shareholder return.

• No specific guidance for portfolio companies, but cautious outlook for sectors exposed to auto and luxury.