Quadient (QDT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached €263 million, with strong organic growth in Digital (up to 9%) and Lockers (up to 14.3%), offsetting Mail declines due to a high comparison base and weather disruptions.

• 9M 2024 revenue totaled €797 million, up 2.4% reported and 0.6% organically, driven by acquisitions (Daylight, Frama) and robust subscription-related revenue growth in Digital (+12.9%) and Lockers (+15.7%).

• Subscription-related revenue accelerated to 2.6% in Q3 and now represents 72% of total revenue, reflecting a focus on recurring business.

• North America delivered 2.9% organic growth in 9M 2024 and 3% in Q3, representing 58% of group revenue.

• Full-year growth outlook for both top-line and current EBIT confirmed.

Financial highlights

• Q3 2024 organic revenue growth was 0.3% year-over-year; reported growth was 0.8%.

• 9M 2024 revenue stood at €797 million, up 0.6% organically and 2.4% reported; subscription-related revenue up 1.4% organically.

• North America drove growth, representing 58% of Q3 revenue, with 3% year-over-year growth.

• European revenue declined organically by 1.6% in Q3; international revenue dropped 9.1% due to a high comparison base in mail.

• Positive €5 million scope impact from acquisitions nearly offset by €4 million negative forex impact in Q3.

Outlook and guidance

• FY 2024 guidance for organic revenue and current EBIT growth reaffirmed, with expectations of continued strong performance in Digital and Lockers and normalization in Mail.

• Long-term ambitions include >1.5% organic revenue CAGR and >3% current EBIT CAGR for 2023-2026, and 2030 targets of >€1bn subscription revenue, c.€250m EBIT, and -35% CO₂ reduction vs. 2018.