Thomson Reuters (TRI) Q4 2024 earnings summary

Executive summary

• Achieved full-year organic revenue growth of 7%, with Q4 organic revenue up 5% and recurring revenues comprising over 80% of total.

• Big Three segments accelerated to 9% organic growth, with Legal, Corporate, and Tax & Accounting showing strong performance.

• Strong adoption of generative AI offerings, with significant momentum in Westlaw Precision and Co-Counsel, and 18% of ACV now GenAI-enabled.

• Completed monetization of LSEG stake, $639 million in share repurchases, and a 10% dividend increase for 2025, marking the 32nd consecutive annual increase.

• Invested $1.6 billion in five acquisitions, including Pagero and SafeSend, and divested FindLaw and two smaller non-core businesses.

Financial highlights

• Q4 2024 revenues were $1,909M (up 5% YoY); operating profit $722M (up 29% YoY); adjusted EBITDA $718M (up 2% YoY); adjusted EPS $1.01 (up 3% YoY).

• Full-year 2024 revenues were $7,258M (up 7% YoY); adjusted EBITDA $2,779M (up 4% YoY), margin 38.2%; adjusted EPS $3.77 (up 7% YoY).

• Free cash flow for 2024 was $1.83 billion, slightly down year-over-year due to higher taxes, CapEx, and lower LSEG dividends.

• Net debt/adjusted EBITDA ratio was 0.4x at year-end, well below the 2.5x target.

Outlook and guidance

• 2025 organic revenue growth guided at 7%-7.5%, with total revenue growth of 3%-3.5% and adjusted EBITDA margin ~39%.

• Big Three segments expected to grow revenue by approximately 9% in 2025 and 9.5% in 2026.

• 2025 free cash flow expected to be about $1.9 billion, with 2026 guidance for $2.0-$2.1 billion.

• Effective tax rate expected to rise to 19% in 2025 and 2026 due to global minimum tax regulations.