Wendel (MF) Q4 2024 earnings summary

Executive summary

• Fully diluted NAV per share reached €185.7 as of December 31, 2024, up 16.9% year-over-year, with a proposed dividend of €4.7 per share, up 17.5% year-over-year and a 4.8% yield.

• Major portfolio rotation included €2.3 billion in disposals and the acquisition of Globeducate, enhancing growth profile.

• Asset management platform expanded, with AUM up 24% to €13.8 billion, and strategic acquisitions of 51% of IK Partners and the announced $1.13 billion Monroe Capital deal.

• Net income, group share, surged to €293.9 million in 2024, mainly due to disposals including Constantia Flexibles.

• Share buybacks of €92.5 million created €1.4 per share in value.

Financial highlights

• Consolidated sales reached €8.064 billion, up 13% year-over-year and 8.4% organically, driven by Bureau Veritas and CPI.

• Net income from operations was €754 million, up 6% year-over-year; group share at €293.9 million.

• Bureau Veritas sales rose 6.4% (10.2% organic), adjusted operating profit up 7.1%, margin at 16%.

• Stahl sales up 1.8%, EBITDA up 1.4%, margin at 22.2%.

• IK Partners generated €1.6 billion in exit proceeds, invested €1.5 billion, and raised €3.4 billion in 2024.

Outlook and guidance

• Bureau Veritas targets mid- to high-single-digit organic revenue growth and margin improvement in 2025.

• Asset management expects 2025 pro forma FRE of ~€160 million and net profit after tax (Wendel share) of ~€100 million, with continued AUM growth and new verticals targeted.

• Dividend expected to increase further in 2025 with full-year consolidation of IK and Monroe Capital.

• Wendel targets €150 million in pre-tax Fee-Related Earnings from asset management by 2027.

• Continued focus on building third-party asset management and pursuing additional verticals.