Nagarro (NA9) Q4 2024 earnings summary

Executive summary

• Revenue grew 6.6% to €972.0 million in 2024, with strong diversification across geographies and industries.

• Adjusted EBITDA margin improved to 15.2% (up from 13.8%), exceeding guidance.

• Net profit remained stable at €49.2 million; EPS increased to €3.69.

• Company maintained high liquidity and reduced net debt to adjusted EBITDA ratio to 1.3x.

• Strategic focus on resilience, diversification, and lean, agile teams; continued investment in AI, digital transformation, and sustainability.

Financial highlights

• Revenue: €972.0 million, up 6.6% year-over-year; organic growth 4.2% in Euro terms.

• Adjusted EBITDA: €147.5 million (15.2% margin), up from €126.1 million (13.8%).

• Gross margin: 30.4% (new method), 26.1% (previous method), both improved from 2023.

• Net profit: €49.2 million, unchanged from 2023.

• Basic and diluted EPS: €3.69, up from €3.64.

• Operating cash flow: €86.5 million, up from €79.7 million.

• Cash position: €192.6 million at year-end.

Outlook and guidance

• 2025 revenue expected between €1,020 and €1,080 million, up from €972 million.

• Gross margin targeted at ~30% (26% previous method); adjusted EBITDA margin between 14.5% and 15.5%.

• CSAT and NPS expected to remain stable at ~90% and ~60, respectively.

• Share buyback program up to €400 million and sustainable dividend policy (10–20% of EBIT annually) announced.