Quadient (QDT) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 financial targets with revenue of €1,093m (+2.8% reported, +0.4% organic) and current EBIT of €146m (+2.2% organic), driven by Digital and Lockers growth, while Mail showed resilience despite integration costs.

• Subscription-based revenue reached 71% of total, with strong double-digit growth in Digital (+10.2%) and Lockers (+11.5%); 1/3 of 2026 subscription growth target already secured.

• Strategic roadmap 'Elevate to 2030' execution underway, with acquisitions of Frama, Package Concierge, and Daylight reinforcing leadership in Mail and Lockers.

• Initiated €30m share buyback program, with €10m repurchased by year-end, and proposed €0.70 dividend per share (+8% YoY).

• Recognized as a leader in Digital automation and CCM by IDC and Aspire.

Financial highlights

• Digital revenue reached €267m (+7.7% organic), ARR grew 12.7% to €232m, and EBITDA margin rose to 17.5%.

• Mail revenue at €732m, down 2.5% organic but up 0.4% reported due to Frama; EBITDA at €200m (27.4% margin), impacted by integration and decertification costs.

• Lockers revenue at €94m, up 4.3% organic, with EBITDA turning positive and installed base surpassing 25,700 units.

• Net attributable income at €66m, EPS at €1.94, both slightly down year-over-year due to higher debt costs and one-off expenses.

• Free cash flow at €66m, up from €64m, with capex at €108m, mainly for UK Lockers and Digital R&D.

Outlook and guidance

• 2025 targets acceleration in organic revenue and current EBIT growth, with quarterly improvement expected.

• 2024-2026 guidance confirmed: minimum 1.5% organic revenue CAGR and 3% organic current EBIT CAGR.

• Strategic focus on expanding subscription revenue to over €1bn and achieving 77% of total revenue by 2030.

• Mail business expected to decline at -3% CAGR, outperforming the market; Digital and Lockers to continue robust growth.