Agfa-Gevaert (AGFB) Q4 2024 earnings summary

Executive summary

• Growth engines in HealthCare IT, Digital Printing Solutions (DPS), and ZIRFON delivered record results in 2024, offsetting declines in traditional film markets, with transformation programs underway to address the film business decline.

• Group FY 2024 adjusted EBITDA reached €70m, with robust cost control and savings programs mitigating negative impacts from film market decline.

• Transformation efforts since 2020 have led to a 9% CAGR in sales and 34% CAGR in adjusted EBITDA for growth engines.

• The company faces strong seasonality, generating 43% of EBITDA in Q4, and continues to address the accelerated decline in its film business.

• Q4 2024 net loss was €63M, compared to a €5M loss in Q4 2023; full-year net loss was €92M, improved from €101M loss in 2023.

Financial highlights

• FY 2024 sales were €1,138m, down 1.1% year-over-year; Q4 2024 sales grew 3.7% to €325m.

• FY 2024 adjusted EBITDA was €70m, down 7.8% year-over-year; Q4 2024 adjusted EBITDA was €30m.

• Q4 free cash flow was €35 million positive, but full-year free cash flow was negative €46 million due to working capital build-up and CapEx investments.

• Net financial debt at year-end was €37 million, with a healthy leverage ratio of 0.7; including lease liabilities, net financial debt increased to €87M.

• FY 2024 net result was a loss of €92m, impacted by €32m restructuring costs in Q4.

Outlook and guidance

• Growth engines are expected to continue strong performance in 2025, with order intake momentum in HealthCare IT and DPC, and a slower start but stronger second half.

• Guidance for HealthCare IT is stable due to the transition from project-based to subscription revenue, which delays revenue and margin recognition.

• DPC and ZIRFON are expected to grow at rates similar to 2024, with no expectation of spectacular volume improvement in hydrogen solutions.

• Radiology Solutions will remain stable, with ongoing market decline mitigated by transformation initiatives.

• Cost base adjustment program for film-related activities on track, with €50m savings expected by end of 2027; first savings in 2H 2025.