Nexity (NXI) H2 2024 earnings summary

Executive summary

• The transformation plan was completed in 2024, focusing on refocusing, resizing, recalibrating, and redeploying operations, resulting in significant deleveraging, cost savings, and a new organizational structure.

• Retail sales rebounded strongly, up 7% year-over-year and 14% in H2, outperforming a market down 4%, driven by lower interest rates and increased first-time buyer activity.

• Major divestments (ADB, NPM, Bien'ici, PMI) generated €435 million in net capital gains, fully allocated to debt reduction, reducing net financial debt by €369 million (44%) to €474 million.

• Operating profit was positive at €2 million, in line with guidance, despite €218 million in transformation costs, largely offset by disposal gains.

• No dividend proposed for 2024; focus remains on profitable growth, cash generation, and future dividend resumption if leverage ratio stays under 3.5x.

Financial highlights

• Revenue for 2024 was €3,535 million, down 17% year-over-year; like-for-like decline of 12% excluding divested activities.

• Operating profit was €2 million, including €218 million in transformation costs and €216 million in capital gains from disposals.

• Net financial debt at year-end was €474 million, down €369 million year-over-year; IFRS net debt at €330 million.

• Free cash flow turned positive at €79 million; liquidity at €1 billion, including €800 million undrawn credit facility.

• Net profit attributable to equity holders was –€62 million (vs €19 million in 2023); net earnings per share –€1.12.

Outlook and guidance

• 2025 guidance targets a return to positive operating profit (IFRS, New Nexity scope), excluding divested and international activities.

• IFRS net debt target for 2025 set below €380 million, allowing flexibility for strategic investments.

• Dividend payments will resume once leverage ratio is below 3.5x.

• Market recovery expected to be gradual, with a stronger rebound anticipated post-2026, following local elections and regulatory changes.