On February 5, 2025, Corpay Inc (CPAY, Financial), a leading global corporate payments company, released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, known for its comprehensive payment solutions that streamline business expenses, reported all-time record revenues and adjusted net income, showcasing its robust performance in the corporate payments sector.

Fourth Quarter and Full Year 2024 Financial Highlights

Corpay Inc (CPAY, Financial) achieved a 10% increase in revenues for the fourth quarter of 2024, reaching $1,034.4 million compared to $937.3 million in the same period of 2023. However, net income attributable to Corpay decreased by 4% to $246.0 million, with net income per diluted share slightly declining by 1% to $3.44. The decrease was influenced by a gain on the sale of a business, a goodwill impairment charge, and a discrete non-cash tax provision, collectively reducing net income by approximately $37 million, or $0.52 per share.

For the full year 2024, revenues rose by 6% to $3,974.6 million, while net income increased by 2% to $1,003.7 million. The net income per diluted share saw a 6% rise to $13.97. These results reflect Corpay's strategic growth initiatives, including two significant acquisitions aimed at scaling its Corporate Payments business.

Non-GAAP Financial Metrics and Achievements

Corpay's non-GAAP results were particularly strong, with organic revenue growth of 12% in the fourth quarter and adjusted EBITDA increasing by 12% to $571.2 million. Adjusted net income rose by 18% to $383.2 million, and adjusted net income per diluted share surged by 21% to $5.36. For the full year, adjusted EBITDA grew by 7% to $2,129.0 million, and adjusted net income increased by 8% to $1,364.1 million, with a 12% rise in adjusted net income per diluted share to $19.01.

“Each business segment delivered accelerating revenue growth with fourth quarter organic revenue growth hitting its high water mark over the past 5 quarters. Our strong core business performance enabled record adjusted earnings per diluted share of $5.36 for the quarter,” said Tom Panther, chief financial officer, Corpay, Inc.

Balance Sheet and Cash Flow Insights

Corpay's balance sheet showed total assets of $17,951.8 million as of December 31, 2024, up from $15,476.3 million at the end of 2023. The company maintained a strong liquidity position with cash and cash equivalents totaling $1,553.6 million. Total liabilities increased to $14,805.8 million, with stockholders' equity at $3,145.9 million.

Net cash provided by operating activities was $1,940.6 million for 2024, reflecting the company's ability to generate substantial cash flow. However, net cash used in investing activities amounted to $807.5 million, primarily due to acquisitions and capital expenditures.

Strategic Outlook and Challenges

Looking ahead to 2025, Corpay anticipates sales growth of approximately 20%, with revenue and adjusted earnings per diluted share growth projected at 10% to 12%. The company expects to generate around $1.5 billion in free cash flow, providing significant capital for strategic initiatives. However, challenges such as unfavorable foreign exchange rates, fuel prices, and interest rates may impact earnings growth.

“Our 2025 outlook is to deliver sales growth of approximately 20%, with revenue and adjusted earnings per diluted share growth of 10% to 12%. Our earnings growth outlook is adversely impacted due to a worsening foreign exchange rates, fuel price, and interest rate outlook since our November earnings call,” stated Tom Panther.

Corpay Inc (CPAY, Financial) continues to demonstrate resilience and strategic foresight in navigating market challenges, positioning itself for sustained growth in the corporate payments industry. For more detailed insights, visit the full 8-K filing.

Explore the complete 8-K earnings release (here) from Corpay Inc for further details.