Kemira (KEMIRA) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with volume growth in both main segments and robust margin management, marking the second best year in company history.

• Revenue for 2024 decreased by 13% to EUR 2,948.1 million due to the Oil & Gas divestment, but adjusted revenue rose 1%, with strong volume growth in Industry & Water and stable sales prices overall.

• Strategic progress included several smaller investments, a bolt-on acquisition in the UK, and a new leadership team and operating model effective January 2025.

• Sustainability advanced with SBTi validation of emission reduction targets and continued solid dividend growth.

• Net profit increased by 24% to EUR 262.7 million, and EPS (diluted) reached an all-time high of EUR 1.61, up 25% year-over-year.

Financial highlights

• Adjusted operative EBITDA margin remained strong at 20.0% for 2024; reported EBITDA margin at 20% and operative EBITDA margin at 22.2% in I&W.

• Net debt/EBITDA at 0.5, with net debt below EUR 300 million and gearing at 16%; equity ratio improved to 53%.

• Cash flow from operations was EUR 484.6 million, with Q4 at EUR 165 million.

• Dividend proposal of EUR 0.74 per share, up EUR 0.06 from previous year, to be paid in two installments.

• CapEx for 2024 at EUR 167.3 million; expected to exceed EUR 200 million in 2025 due to planned investments.

Outlook and guidance

• 2025 revenue expected between EUR 2,800–3,200 million; operative EBITDA guidance set at EUR 540–640 million.

• Modest volume growth expected in water markets across all regions; recovery in Fiber Essentials, Packaging & Hygiene Solutions, and pulp markets anticipated mainly in H2 2025.

• Pricing environment stabilized with modest increases expected; cost inflation expected to be modest and manageable.

• Input costs expected to be stable or slightly higher; no major operational disruptions assumed.

• Long-term financial targets updated: organic growth >4% annually, operative EBITDA margin 18–21%, operative ROCE >16%.