GFT Technologies (GFT) Q4 2024 earnings summary

Executive summary

• Achieved 10% revenue growth in 2024 to EUR 870.92 million, exceeding guidance, with adjusted EBIT up 6% to EUR 77.44 million and margin at 8.9%.

• Major new clients and deals in Germany, Mexico, and the US; 116 new qualified clients, mainly from Sophos acquisition.

• Launched and expanded GFT Impact, a generative AI product, growing from 10 to 25 clients and 170 to 315 licenses in Q4, driving productivity gains.

• Largest M&A in company history: Sophos acquisition added EUR 55 million revenue and ~1,400 experts, supporting expansion in the Americas.

• Recognized with AWS global awards and named among Fortune's World's Best Workplaces.

Financial highlights

• Revenue reached EUR 870.92 million (+10% year-over-year), surpassing guidance; order backlog up 33% to EUR 503.12 million.

• Adjusted EBITDA up 5% to EUR 93.95 million; adjusted EBIT up 6% to EUR 77.44 million; EBIT up 4% to EUR 70.99 million.

• Net income declined 4% to EUR 46.48 million; EPS down 4% to EUR 1.77.

• Free cash flow (adjusted) at EUR 55.6 million, highest ever; operating cash flow rose 79% to EUR 72.42 million.

• Net cash declined to minus EUR 42.53 million, mainly due to the Sophos acquisition and higher dividend payout.

Outlook and guidance

• 2025 revenue guidance set at EUR 930 million (+7% year-over-year); adjusted EBIT expected at EUR 68 million (7.3% margin), reflecting higher investments.

• Free cash flow milestone for 2025 is EUR 45 million; net debt/EBITDA guided at 0.2.

• Utilization expected at 90.5% for 2025; midterm (2029) targets: EUR 1.5 billion revenue and 9.5% adjusted EBIT margin.

• Investments in 2025 will burden margins but are expected to pay off from 2026 onward.

• Profitability expected to improve from 2026 as strategic initiatives mature.