Tarkett (TKTT) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined slightly by 0.9% year-over-year to €3,332 million, reflecting weak demand in EMEA and CIS, with commercial segments more resilient than residential.

• Adjusted EBITDA rose 14.4% to €329 million (9.9% margin), driven by cost savings, lower raw material costs, and productivity gains.

• Net profit was a loss of €62.6 million due to €111 million in non-cash asset impairments in CIS and EMEA Wood; excluding these, net profit was €49 million, up from €20.5 million in 2023.

• Free cash flow improved to €149 million, and net debt was reduced by €117 million to €435 million, lowering leverage to 1.3x adjusted EBITDA.

• Selective acquisitions in the Sport segment and divestment of a California distribution subsidiary strengthened the North American position.

Financial highlights

• Revenue: €3,331.9 million in 2024 vs. €3,363.1 million in 2023 (-0.9%).

• Adjusted EBITDA: €329.3 million (9.9% margin) vs. €287.8 million (8.6%) in 2023.

• Adjusted EBIT: €190.8 million (+23.8% year-over-year).

• Net profit (Group share): -€62.6 million; adjusted net profit (excluding impairments): €49.0 million.

• Free cash flow: €149.4 million, up from €147.1 million in 2023.

• Net debt: €434.7 million, leverage at 1.3x adjusted EBITDA.

Outlook and guidance

• 2025 outlook remains cautious due to persistent macroeconomic and geopolitical uncertainty, especially in Europe and CIS.

• No short-term recovery expected in residential or Russian markets; commercial and Sport segments expected to remain more resilient.

• Targeting adjusted EBITDA of around €360 million in 2025, including recent Sport acquisitions.