SeSa (SES) Q4 & Investor Day 2024 earnings summary

Executive summary

• FY2024 revenues reached €3.2104 billion (+10.4% YoY), EBITDA €239.5 million (+14.4% YoY), and headcount rose to 5,691 (+21% YoY), with strong organic growth in cloud, cybersecurity, digital platforms, and Data/AI.

• EBITDA margin improved to 7.5% (from 7.2%), driven by all business sectors.

• Outperformed the Italian IT market, gaining share in all sectors and focusing on Data/AI, Cloud, Security, and Digital Platforms.

• Over 1,000 new hires in FY2024, with significant investments in technology, M&A, and ESG improvements.

• Confirmed positive outlook for FY2025, targeting revenues of €3.35–3.5 billion (+5–10% YoY) and EBITDA of €252–270 million (+5–12.5% YoY).

Financial highlights

• Revenues: €3,210.4 million (+10.4% YoY); EBITDA: €239.5 million (+14.4% YoY); EBITDA margin: 7.5%.

• Adjusted EBIT: €192.7 million (+14.9% YoY); Adjusted Net Profit: €106.4 million (+4.1% YoY).

• Net Financial Position: €211 million net liquidity (down from €239.5 million YoY) after €142 million in investments and €25 million in dividends/buybacks.

• Operating cash flow: €242 million (+41% YoY); net working capital at €20.8 million.

• Dividend per share confirmed at €1.00; total €15.5 million.

Outlook and guidance

• FY2025 guidance: revenues €3.35–3.5 billion (+5–10% YoY), EBITDA €252–270 million (+5–12.5% YoY), EAT adjusted €110–115 million (+2.5–7.5% YoY).

• Net financial position expected at €215–250 million, including €100 million annual investments.

• Headcount target: 6,120–6,400 (+7.5–12.5% YoY); double-digit growth expected in software/system integration and business services, single-digit in value-added solutions.

• Growth expected mainly in H2 FY2025, with low single-digit growth in H1.

• Conservative guidance due to high interest rates; potential for outperformance if rates improve.