Newegg commerce: Galkin family buys $5.8M in NEGG stock
Investing.com -- Euronext (EPA:ENX) reported strong fourth-quarter results, with a year-over-year improvement across key financial metrics, sending its shares up by over 2% on Friday.
The company's revenue grew 11% compared to the same period last year, reaching €415.8 million.
This was supported by broad-based strength across multiple business segments, particularly post-trade services, cash trading, and technology solutions.
Euronext's EBITDA came in at €252.6 million, reflecting a 17% increase from the previous year. The EBITDA margin expanded by five percentage points, rising to 60.8%, signaling improved operational efficiency despite higher costs. Operating profit also saw a substantial 18% Y/Y gain, reaching €231.1 million.
Segment-wise, post-trade services were a standout, posting a 14% Y/Y revenue increase, while cash trading revenue rose 11%.
The technology solutions division saw a 3% growth, reflecting ongoing demand for its offerings. Other segments, such as derivatives and foreign exchange, also showed positive momentum, contributing to the overall revenue uplift.
Despite these gains, operating expenses remained a focus. Euronext’s 2025 operating expense guidance of about €670 million implies a 5% organic growth rate, slightly exceeding Visible Alpha’s consensus estimate of €653 million.
This higher cost expectation could lead to a modest 1-2% downward adjustment in consensus EBITDA estimates.
However, Morgan Stanley (NYSE:MS) views this as a manageable factor, given Euronext’s exposure to cyclical tailwinds, including a 23% increase in average daily cash equity trading volumes in January.
On the balance sheet front, Euronext maintained a net debt-to-EBITDA ratio of 1.4x, which provides room for continued shareholder returns.
The company has already completed 65% of its €300 million share buyback program as of early February.
While initial investor focus may be on cost guidance, Morgan Stanley suggests that Euronext’s strong revenue momentum and operational improvements position the company favorably for continued earnings growth.
The brokerage expects positive estimate revisions going forward as cyclical recovery trends support further revenue expansion.