KYNDRYL OUTLINES GROWTH STRATEGY AT 2024 INVESTOR DAY
Kyndryl (NYSE: KD) hosted its 2024 Investor Day, announcing a $300 million share repurchase program and outlining its growth strategy. The company expects to triple its adjusted free cash flow to at least $1 billion by fiscal 2028 compared to fiscal 2025, and to more than double its adjusted pretax income to at least $1.2 billion. The strategy focuses on their 3A's initiatives (Alliances, Advanced Delivery, Accounts), Kyndryl Consult's double-digit revenue growth, and AI-powered Kyndryl Bridge platform. The company projects adjusted EBITDA margin of 20% to 22% by fiscal 2028, representing a 370-570 basis points increase from fiscal 2025.
Kyndryl (NYSE: KD) ha ospitato il suo Investor Day 2024, annunciando un programma di riacquisto di azioni da 300 milioni di dollari e delineando la sua strategia di crescita. L'azienda prevede di triplicare il proprio flusso di cassa libero rettificato ad almeno 1 miliardo di dollari entro il 2028 fiscale rispetto al 2025 fiscale, e di più che raddoppiare il proprio reddito ante imposte rettificato ad almeno 1,2 miliardi di dollari. La strategia si concentra sulle iniziative delle 3A (alleanze, consegna avanzata, conti), sulla crescita a doppia cifra dei ricavi di Kyndryl Consult e sulla piattaforma Kyndryl Bridge potenziata dall'IA. L'azienda prevede un margine EBITDA rettificato dal 20% al 22% entro il 2028 fiscale, rappresentando un incremento di 370-570 punti base rispetto al 2025 fiscale.
Kyndryl (NYSE: KD) celebró su Día del Inversor 2024, anunciando un programa de recompra de acciones de 300 millones de dólares y describiendo su estrategia de crecimiento. La compañía espera triplicar su flujo de efectivo libre ajustado a al menos 1 mil millones de dólares para el año fiscal 2028 en comparación con el fiscal 2025, y más que duplicar su ingreso ajustado antes de impuestos a al menos 1.2 mil millones de dólares. La estrategia se centra en sus iniciativas de las 3A (Alianzas, Entrega Avanzada, Cuentas), el crecimiento de dos dígitos en los ingresos de Kyndryl Consult, y la plataforma Kyndryl Bridge impulsada por IA. Se proyecta un margen EBITDA ajustado del 20% al 22% para el año fiscal 2028, lo que representa un aumento de 370 a 570 puntos base en comparación con el 2025 fiscal.
킨드릴 (NYSE: KD)는 2024 투자자 데이를 개최하고 3억 달러 규모의 자사주 매입 프로그램을 발표하며 성장 전략을 설명했습니다. 이 회사는 조정된 자유 현금 흐름을 2025 회계연도 대비 2028 회계연도까지 최소 10억 달러로 3배 증가시키고 조정된 세전 수익을 최소 12억 달러로 2배 이상 늘리기를 기대하고 있습니다. 이 전략은 3A 이니셔티브(제휴, 고급 제공, 계정), 킨드릴 컨설트의 두 자릿수 수익 성장 및 인공지능(AI) 기반의 킨드릴 브리지 플랫폼에 중점을 둡니다. 이 회사는 2028 회계연도까지 조정된 EBITDA 마진이 20%에서 22%에 이를 것으로 예상하며, 이는 2025 회계연도 대비 370-570 베이시스 포인트의 증가를 나타냅니다.
Kyndryl (NYSE: KD) a organisé sa journée des investisseurs 2024, annonçant un programme de rachat d'actions de 300 millions de dollars et présentant sa stratégie de croissance. L'entreprise s'attend à tripler son flux de trésorerie libre ajusté à au moins 1 milliard de dollars d'ici l'exercice fiscal 2028 par rapport à l'exercice fiscal 2025, et à plus que doubler son revenu imposable ajusté à au moins 1,2 milliard de dollars. La stratégie se concentre sur ses initiatives des 3A (alliances, livraison avancée, comptes), sur la croissance à deux chiffres des revenus de Kyndryl Consult et sur la plateforme Kyndryl Bridge alimentée par l'IA. L'entreprise projette une marge EBITDA ajustée de 20 % à 22 % d'ici l'exercice fiscal 2028, représentant une augmentation de 370 à 570 points de base par rapport à l'exercice fiscal 2025.
Kyndryl (NYSE: KD) veranstaltete seinen Investorentag 2024, kündigte ein Aktienrückkaufprogramm in Höhe von 300 Millionen US-Dollar an und skizzierte seine Wachstumsstrategie. Das Unternehmen erwartet, dass es seinen bereinigten freien Cashflow bis zum Geschäftsjahr 2028 auf mindestens 1 Milliarde US-Dollar im Vergleich zum Geschäftsjahr 2025 verdreifachen kann und den bereinigten Vorsteuergewinn auf mindestens 1,2 Milliarden US-Dollar mehr als verdoppeln wird. Die Strategie konzentriert sich auf die 3A-Initiativen (Allianzen, Fortgeschrittene Lieferung, Konten), das zweistellige Umsatzwachstum von Kyndryl Consult und die KI-gestützte Kyndryl Bridge-Plattform. Das Unternehmen prognostiziert eine bereinigte EBITDA-Marge von 20% bis 22% bis zum Geschäftsjahr 2028, was einen Anstieg von 370 bis 570 Basispunkten gegenüber dem Geschäftsjahr 2025 darstellt.
- Authorization of $300 million share repurchase program
- Projected tripling of adjusted free cash flow to $1 billion by fiscal 2028
- Expected doubling of adjusted pretax income to $1.2 billion by fiscal 2028
- Anticipated EBITDA margin expansion to 20-22% by fiscal 2028
- Double-digit revenue growth in Kyndryl Consult division
- Strong signings growth momentum reported
- None.
Insights
This investor day reveals significant strategic shifts and financial targets that strengthen Kyndryl's market position. The
Key growth drivers include Kyndryl Consult's double-digit revenue growth and the AI-powered Kyndryl Bridge platform. The targeted adjusted EBITDA margin expansion to
The strategic focus on AI-powered operations through Kyndryl Bridge represents a important competitive advantage in the IT infrastructure services market. This platform's dual benefit of improving service delivery efficiency while generating new revenue streams positions Kyndryl well against competitors. The emphasis on consulting services through Kyndryl Consult shows smart diversification into higher-margin activities, moving beyond traditional infrastructure management.
The company's evolution since its IBM spin-off demonstrates successful transformation from a legacy IT services provider to a modern, AI-enabled infrastructure partner. The strong signings growth indicates market validation of this strategy, particularly important as enterprises increasingly seek partners for complex digital transformation initiatives.
- Poised for ongoing annual revenue growth, margin expansion and significant cash flow generation
- Board authorizes
$300 million
"Since becoming an independent company in November 2021, we've consistently communicated our strategic milestones and executed ahead of plan – positioning Kyndryl for revenue growth, further margin expansion and strong free cash flow generation," said Kyndryl Chairman and Chief Executive Officer Martin Schroeter.
"The investments we've made in our people, technology alliances and intellectual property have expanded our leadership position in our industry and our role as the trusted partner of choice in the markets we serve. The strength of our strategic and operational execution has allowed us to now have the flexibility to return capital to shareholders under our share buyback program."
At the Investor Day, Kyndryl outlined its multi-year growth strategy, emphasizing that:
- The Company expects to triple its adjusted free cash flow in fiscal year 2028 compared to fiscal year 2025, and to more than double its adjusted pretax income over that time period
- Kyndryl is well-positioned to deliver the single-digit revenue growth required to achieve its cash flow and earnings targets
- Kyndryl will realize incremental benefits from its 3A's initiatives – Alliances, Advanced Delivery and Accounts – which have been a key source of the margin expansion the Company has already delivered
- Kyndryl Consult, the Company's advisory services activities, will continue to grow revenue at a double-digit rate, outpacing market growth and contributing to margin expansion
- The Company's AI-powered operating platform, Kyndryl Bridge, is driving efficiencies in service delivery and providing operational insights that are a powerful source of market differentiation and revenue generation
Kyndryl reaffirmed its fiscal 2025 guidance, previously shared on November 7 when the Company reported second quarter fiscal 2025 results. Additionally, the Company provided its financial objectives for fiscal year 2028 (the twelve months from April 2027 to March 2028), including:
- Adjusted free cash flow of at least
$1 billion 100% conversion of adjusted pretax income less cash taxes into adjusted free cash flow - Adjusted pretax income of at least
$1.2 billion - Adjusted EBITDA margin of
20% to22% , up 370 to 570 basis points versus fiscal 2025
"We've delivered strong signings growth over the last twelve months, and we expect this momentum to continue as there are growing needs for the essential services Kyndryl provides. Our growth in signings supports our future revenue and earnings trajectory and, in turn, will drive significant free cash flow generation," said Kyndryl Chief Financial Officer David Wyshner. "Our newly authorized share repurchase program is an important step in the evolution of our capital allocation strategy and reflects our commitment to building long-term shareholder value."
Investor Day Webcast Replay
Slides from today's presentation and a replay of the event are available at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries. The Company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "contemplate," "could," "estimate," "expect," "forecast," "intend," "may," "objective," "opportunity," "plan," "poised," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance.
The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, political, public health and other conditions; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; the impact of our business with government customers; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements; adverse effects from tax matters and environmental matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; risks related to the Company's spin-off; and risks related to the Company's common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding its outlook, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA margin, adjusted pretax income and adjusted free cash flow. For more information about these non-GAAP financial measures, see the Company's Investor Day slide presentation available at investors.kyndryl.com. A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP. All projections are based on recent exchange rates as of October 2024.
Investor Contact:
investors@kyndryl.com
Media Contact:
press@kyndryl.com
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SOURCE Kyndryl
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