Capgemini (CAP) Q4 2024 earnings summary

Executive summary

• 2024 revenues reached €22.096 billion, down 2% year-on-year at constant currency, reflecting a challenging market and subdued discretionary client spend, especially in manufacturing and France.

• Operating margin held steady at 13.3% of revenue, with net profit (Group share) up 0.5% to €1,671 million and normalized EPS at €12.23.

• Bookings totaled €23.8 billion, with a robust book-to-bill ratio of 1.08 for the year and 1.22 in Q4, indicating strong commercial momentum.

• Generative AI bookings represented 4% of annual bookings and 5% in Q4, with over 150,000 employees trained and recognition for GenAI leadership.

• ESG achievements included a 35% reduction in emissions since 2019, 98% renewable electricity, and 39.7% women in the workforce.

Financial highlights

• Net profit group share was €1,671 million, up 0.5% year-on-year; basic EPS increased 1.2% to €9.82; normalized EPS was €12.23, down 1.7%.

• Organic free cash flow remained strong at €1,961 million, in line with targets.

• Gross margin improved by 50 basis points to 27.4% of revenues.

• Net debt stood at €2.1 billion at year-end 2024, slightly up from €2.0 billion in 2023.

• Net financial income improved to €13 million from a €42 million expense in 2023.

Outlook and guidance

• 2025 revenue growth guidance set at -2% to +2% at constant currency, reflecting caution amid macroeconomic and geopolitical uncertainty.

• Operating margin targeted at 13.3% to 13.5%; organic free cash flow guidance maintained at around €1.9 billion.

• H1 2025 revenue growth expected to remain in the same range as Q4 2024.

• M&A expected to contribute 1-2 points to growth, depending on further acquisitions.