VusionGroup (VU) H2 2024 earnings summary

Executive summary

• Achieved record adjusted revenues of €1.01 billion in 2024, up 25% year-over-year, with order entries growing 71% to €1.6 billion and a book-to-bill ratio of 160%.

• EBITDA rose 51% to over €160 million, with margin improving by 2.7 points to 15.9% of sales.

• Free cash flow reached a record €391 million, and net cash position increased to €393 million from €27.2 million.

• North America became the largest market, driven by the Walmart contract and rapid US deployment, while Europe saw a temporary revenue dip.

• Major contract wins, especially with Walmart U.S., drove growth, with additional undisclosed deals and innovation launches like EdgeSense and Vusion OX.

Financial highlights

• Adjusted revenues: €1.01 billion (+25% YoY); IFRS revenues: €955 million.

• Adjusted EBITDA: €160.5 million (+51% YoY), margin at 15.9% (+2.7 pts YoY).

• Adjusted net income: €53.4 million (+54% YoY); IFRS net loss: -€28.9 million due to non-cash items.

• CapEx: €158 million, with €117.3 million funded by customers; Group-funded CapEx at €40.7 million (4% of revenues).

• Free cash flow: €391 million; EBITDA/FCF conversion rate at 54%.

• Dividend proposal: €0.60 per share, double the prior year.

Outlook and guidance

• 2025 adjusted revenue expected to grow ~40% to €1.4 billion, with Q1 growth around 25%.

• VAS (Value-Added Services) revenue projected to grow ~80%, outpacing top-line growth.

• Adjusted EBITDA margin to improve by 100–200 basis points in 2025, with continued positive free cash flow.

• CapEx-to-sales ratio guidance maintained at 5–7% for coming years.