Agfa-Gevaert (AGFB) Q4 2024 earnings summary

Executive summary

• Record results in 2024 for HealthCare IT, Digital Printing Solutions (DPS), and ZIRFON, with all three growth engines achieving record Q4 and annual performance, offsetting declines in traditional film markets.

• Group FY 2024 adjusted EBITDA reached €70m, with robust cost control and savings programs mitigating negative impacts from film market decline.

• Transformation program for film includes operational changes and a signed social plan, targeting over €50 million in recurring cost savings, with restructuring costs of €32 million in P&L.

• Q4 2024 net loss was €63M, with a full-year net loss of €92M, improved from €101M loss in 2023.

• Transformation efforts since 2020 have led to a 9% CAGR in sales and 34% CAGR in adjusted EBITDA for growth engines.

Financial highlights

• FY 2024 sales were €1,138m, down 1.1% year-over-year; Q4 2024 sales grew 3.7% to €325m.

• FY 2024 adjusted EBITDA was €70m, down from €76m in 2023; Q4 2024 adjusted EBITDA was €30m.

• Q4 free cash flow was positive at €35 million, but full-year free cash flow was negative €46 million due to working capital build-up and planned CapEx investments.

• Net financial debt at year-end 2024 was €37m, with a leverage ratio of 0.7; including lease liabilities, net financial debt was €87m.

• Pension liabilities reduced by €51 million in material countries; funded status improved to -€388m in FY 2024.

Outlook and guidance

• Growth engines are expected to continue strong performance in 2025, with order intake momentum in HealthCare IT and DPC.

• Guidance for 2025 is for performance roughly in line with 2024, reflecting a cautious outlook due to the transition to a subscription model in HealthCare IT, which delays revenue and margin recognition.

• DPC and ZIRFON are expected to maintain growth, while radiology is expected to be stable, with ongoing mitigation of market decline through transformation.

• Cost base adjustment program for film-related activities on track, with €50m savings expected by end of 2027; first savings in 2H 2025.

• CapEx for 2025 is expected to be about €10 million lower than 2024.