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Antin Infrastructure Partners (FRA:8ZU) (Q4 2024) Earnings Call Highlights: Record Revenues and ...

In This Article:

  • Underlying EBITDA: EUR187 million, above guidance.

  • Dividend Payout Ratio: 93%, equivalent to about 7% dividend yield.

  • Fundraising: EUR1.1 billion raised in 2024, total commitments of Fund V at EUR10.2 billion.

  • Revenue Growth: Increased by 12.6%, driven by management fees.

  • Assets Under Management (AUM): Increased by 7.3% to EUR21.6 billion.

  • Fee-Paying AUM: Highest level in firm's history.

  • Operating Expenses: Increased by 22.5% in 2024.

  • Dividends: Maintained at EUR0.71 per share, subject to shareholder approval.

  • Performance Fee Potential: EUR520 million, assuming a 2 times gross money multiple.

  • New Investments: EUR1.8 billion in 2024, including Portakabin, Proxima, and GTA leasing.

  • Exit Activity: Resumed with the sale of GSR, marking full realization of Fund II.

  • EBITDA Margin Improvement: Driven by profitable growth initiatives.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Antin Infrastructure Partners (FRA:8ZU) reported a record level of revenues, EBITDA, and net income for 2024, with underlying EBITDA at EUR 187 million, surpassing previous guidance.

  • The company successfully closed Flagship Fund V, the largest infrastructure fund globally in 2024, raising EUR 10.2 billion, which was 56% above its predecessor fund.

  • Antin achieved a 93% payout ratio, translating to a 7% dividend yield, reflecting strong cash flow generation and a significant cash position.

  • The company made strategic progress in Asia Pacific and North America, raising five times more commitments than Fund IV in North America.

  • Antin's portfolio companies showed strong growth, with an average revenue growth rate of 12% and EBITDA growth of 20% in 2024, driven by organic initiatives and acquisitions.

Negative Points

  • The company anticipates 2025 to be a transition year, with expectations of slower growth as it prepares for the next fundraising cycle.

  • Despite strong performance, the company faces challenges in the infrastructure fundraising environment, with a concentration of funds among the largest players.

  • Antin's operating expenses increased by 22.5% in 2024, driven by an increase in the number of employees and compensation increases.

  • The company acknowledges the potential impact of geopolitical changes and macroeconomic uncertainties on investment and exit activities.

  • There is a need to manage a significant cash position efficiently, with plans to use it for new strategies and initiatives, but no immediate plans for share buybacks due to a limited float.