Thomson Reuters(US:TRI)2025-11-04 12:06Financial Performance - Revenues for Q3 2025 were $1,782 million, a 3.4% increase from $1,724 million in Q3 2024[53] - Operating profit for Q3 2025 was $593 million, up 42.9% from $415 million in Q3 2024[53] - Net earnings for Q3 2025 were $423 million, compared to $301 million in Q3 2024, representing a 40.7% increase[53] - Basic earnings per share for Q3 2025 were $0.94, up from $0.67 in Q3 2024, reflecting a 40.3% increase[53] - Earnings from continuing operations for Q3 2025 were $428 million, up from $277 million in Q3 2024, representing a 55% increase[59] - Adjusted EBITDA for Q3 2025 was $672 million, with an adjusted EBITDA margin of 37.7%, compared to $609 million and 35.3% in Q3 2024[59] - Total revenues for Q3 2025 increased by 3% to $1,782 million, compared to $1,724 million in Q3 2024[69] - Adjusted EPS for Q3 2025 was $0.85, a 6% increase from $0.80 in Q3 2024[65] - Total revenues for the nine months ended September 30, 2025, increased by 2% to $5,467 million compared to $5,349 million in 2024[73] - Total revenues for the three months ended September 30, 2025, were $1,782 million, with an adjusted EBITDA of $672 million, resulting in a margin of 37.7%[83] - For the nine months ended September 30, 2025, total revenues reached $5,487 million, with an adjusted EBITDA of $2,159 million, reflecting a margin of 39.3%[83] Cash Flow and Investments - The company reported operating cash flows from continuing operations of $705 million for Q3 2025, compared to $756 million in Q3 2024[57] - The company incurred net cash used in investing activities of $141 million in Q3 2025, compared to $206 million in Q3 2024[57] - Free cash flow for the nine months ended September 30, 2025, was $1,369 million, slightly down from $1,403 million in the same period of 2024[61] - Capital expenditures for the nine months ended September 30, 2025, were $476 million, up from $446 million in the same period of 2024[61] Assets and Liabilities - Total assets decreased to $17,850 million as of September 30, 2025, down from $18,437 million at the end of 2024[55] - The company’s total liabilities decreased to $6,089 million as of September 30, 2025, from $6,431 million at the end of 2024[55] - The company’s retained earnings decreased to $9,113 million as of September 30, 2025, down from $9,699 million at the end of 2024[55] - The net debt as of September 30, 2025, was $1,831 million, with a leverage ratio of net debt to adjusted EBITDA at 0.6:1[92] Segment Performance - The "Big 3" segments combined reported a revenue increase of 4% to $1,457 million in Q3 2025, compared to $1,403 million in Q3 2024[69] - Legal Professionals segment revenues decreased by 3% to $2,130 million, while Corporates segment revenues increased by 8% to $1,491 million[73] - The Tax & Accounting Professionals segment saw a significant increase in adjusted EBITDA of 21% to $401 million, with a margin of 44.2%[80] - Total recurring revenues for the nine months ended September 30, 2025, increased by 3% to $4,401 million, driven by an 8% increase in Corporates[73] - Transactions revenues for the nine months ended September 30, 2025, increased by 4% to $712 million, with a notable 23% increase in the Tax & Accounting Professionals segment[73] - The "Big 3" segments combined reported a 7% increase in adjusted EBITDA to $1,986 million, with a margin improvement of 160 basis points[80] - Reuters News segment revenues increased by 1% to $621 million, while Global Print revenues decreased by 6% to $354 million[73] - Legal Professionals segment reported revenues of $2,130 million for the nine months ended September 30, 2025, with an adjusted EBITDA margin of 48.3%[83] - The Reuters News segment generated revenues of $621 million for the nine months ended September 30, 2025, with an adjusted EBITDA margin of 20.2%[83] - The Global Print segment achieved revenues of $354 million for the nine months ended September 30, 2025, with an adjusted EBITDA margin of 37.0%[83] Operational Efficiency - The effective tax rate on adjusted earnings was 17.6% for the year ended December 31, 2024[65] - The overall adjusted EBITDA margin improved by 80 basis points compared to the previous year, reflecting operational efficiencies[80] - The Corporate costs for the three months ended September 30, 2025, were $(22) million, indicating a reduction in overhead expenses[83] - The adjusted EBITDA for the year ended December 31, 2024, was $2,779 million, with consolidated revenues excluding fair value adjustments at $7,267 million, resulting in a margin of 38.2%[88] - The adjusted EBITDA margin for the "Big 3" segments combined for the nine months ended September 30, 2024, was 42.3%[85] - The "Big 3" segments, which include Legal Professionals, Corporates, and Tax & Accounting Professionals, accounted for approximately 80% of the company's revenues[94] - Net debt is calculated as total debt plus related hedging instruments and lease liabilities, excluding unamortized transaction costs, with a focus on net cash outflow at maturity[94] - The net debt to adjusted EBITDA ratio is calculated using net debt divided by adjusted EBITDA for the previous twelve-month period, reflecting a conservative measure of leverage[94]