GFT achieves FY 2024 guidance with 10 percent revenue growth and unveils new five-year strategy and mid-term targets

Stuttgart, Germany and New York, New York (March 11, 2025) – Together with the presentation of its preliminary results for the financial year 2024, GFT Technologies SE (GFT) has published its new five-year strategy and mid-term targets: the company plans to grow revenue to around EUR 1.5 billion and achieve an adjusted EBIT margin of 9.5 percent by 2029. 

 

GFT intends to become fully AI-centric by 2029 to both capture the operational advantages that AI offers and create a corporate culture of excellence that delivers the best responsible AI-centric digital solutions, software development and technology services to every company in the world. To advance its goals, GFT leverages its existing strong client relationships and unrivaled expertise in highly regulated and sensitive industries.

 

“I’m convinced that software development, IT engineering, and consulting services will be completely transformed within a few years. This presents major opportunities for GFT. To seize those opportunities, however, we must do more than adapt – we must lead. Over the course of the last few months, we have invested significant time and resources in developing our new five-year strategy that will allow GFT to turn into a fully AI-centric company and create the prerequisites to significantly benefit from the AI revolution,” says GFT’s Global CEO Marco Santos.

 

Santos explained that as part of the new strategy, the company will launch strategic initiatives such as a targeted expansion of Tier 1 clients and global accounts, a new modern Global Delivery Platform for scalable and optimized price-point services, and investments in high value-added offerings, assets and products like GFT’s generative AI product – AI Impact, as well as in people upskilling and specialized M&As. He added: “We realize real value and impact for our clients, and we are investing in our expertise, innovation and delivery capabilities to become the partner of choice for any clients going through their AI transformation. Our focus is on strong and profitable growth over the long term. Our strategic initiatives will affect our results in the short term, but we are confident that our strategy will bring improved profitability from 2026 onwards.”

 

GFT’s growth ambitions are based on a strong foundation. In 2024, GFT achieved its guidance: it generated revenue of EUR 870.92 million, corresponding to year-on-year growth of 10 percent. Adjusted earnings before interest and taxes (adjusted EBIT) rose by 6 percent to EUR 77.44 million.

 

Business with banks and industrial clients made particularly strong progress with revenue growth of 12 and 10 percent, respectively. The insurance sector remained stable compared to last year. Revenue in this sector rose by 1 percent, driven by strategic project wins with key players in the Americas and Europe.

 

GFT CFO and Deputy CEO Jochen Ruetz says: “Our five-year strategy is built on financial strength and disciplined growth. Our strategic initiatives will enhance our capabilities, increase our profitability, and strengthen our market position. This balanced approach will secure our adaptability, drive continuous innovation, and enable us to stay ahead in a dynamic market.”

 

GFT’s generative AI product AI Impact continues to scale up in the market and contribute to new client and project wins. In the second half of 2024, GFT won around 25 new clients for the product and sold 315 new licenses. It has brought proven productivity gains of 50 to 90 percent in real-world client projects. AI Impact has been approved by both Amazon Web Services (AWS) and Microsoft and is available on their global marketplaces. More than 4,000 GFT engineers have already been trained with the product and more than 800 engineers are engaged with product evolution.

 

The company’s drive for excellence resulted in two major AWS partner awards: AWS Global Innovation Partner of the Year and AWS EMEA Financial Services Partner of the Year. Client references showcased the impact of the company’s solutions, while analysts like SPARK Matrix, IDC, and Everest affirmed its leadership in digital banking transformation. GFT has also been named one of the top 25 Fortune World’s Best Workplaces™. This list is widely regarded as the benchmark for global employer excellence.

 

Strong growth in key European markets and Latin America

The company achieved above-average growth in the segment Continental Europe with a 13 percent increase in revenue, driven mainly by the German and Spanish markets. This was supported also by the acquisition of targens GmbH. As a result, Germany has become GFT’s third-largest market. The segment also benefited from a shift in revenue from the UK to Poland.

 

Revenue in the Americas, UK & APAC segment rose year on year by 9 percent. This includes the acquisition of Sophos Solutions, which is reflected in the consolidated figures with effect from 1 February 2024. GFT’s largest market Brazil delivered strong revenue growth of 18 percent and is making significant progress again. Growth was driven in all sectors by the noticeable uptick in demand for platform modernization and AI solutions.

 

In the USA in Q4 2024, GFT was able to sign its first contract with one of the top three largest US retail banks. The company also signed four new long-term contracts with clients in the USA. These contracts are secured for three years and will significantly drive US revenue. The latest client wins reflect growing recognition of GFT’s capabilities and market positioning as it widens its footprint in the USA.

 

Further growth in earnings

There were also improvements in the Group’s key earnings figures compared to 2023. Adjusted EBIT rose year on year by 6 percent to EUR 77.44 million (2023: EUR 73.33 million), despite high burdens from necessary efficiency measures. In the financial year 2024, the adjusted EBIT margin amounted to 8.9 percent (2023: 9.3 percent). Compared to the prior-year period, EBT decreased by 4 percent to EUR 65.01 million (2023: EUR 68.00 million).

 

Due to the stable growth of earnings, GFT’s Administrative Board will propose to the Annual General Meeting on 5 June 2025 the distribution of a dividend of EUR 0.50 per no-par share for the financial year 2024 (2023: EUR 0.50). This corresponds to a total payout to shareholders of EUR 13.16 million (2023: EUR 13.16 million) and a payout ratio of 28 percent (2023: 27 percent) based on net income.

 

Financial stability and flexibility maintained despite Sophos acquisition

Operating cash flow increased year on year to EUR 72.42 million (2023: EUR 40.44 million), supported by positive working capital effects. Net liquidity fell to EUR -42.53 million (31 December 2023: EUR 4.39 million) – driven mainly by the acquisition of Sophos Solutions and the increased dividend compared to 2023. The equity ratio was virtually unchanged at 42 percent (31 December 2023: 43 percent).

 

As of 31 December 2024, the Group had a total of 11,506 full-time employees (FTE). This corresponds to an increase of 26 percent compared to 9,134 FTE at year-end 2023.

 

Integration of Sophos Solutions successfully completed and new strategic wins

The integration of Sophos Solutions S.A.S. into the GFT Group was successfully completed by the end of 2024, as planned. The acquisition has been a major strategic success, continuing to deliver new strategic wins that enhance GFT’s position in key markets. These include core banking modernization projects for Bancolombia, the largest bank in Colombia, in Q3 of 2024 and Banco Actinver, a leading wealth management and investment bank in Mexico, in Q4.

 

Despite solid organic revenue growth, GFT expects lower adjusted EBIT for 2025 due to higher investments  

GFT anticipates solid revenue growth in its financial year 2025. The pressure on companies to digitalize and the resulting strong demand for cloud and AI solutions as part of the digital transformation will continue to accelerate the growth of GFT’s business.

 

As part of its efforts to turn GFT into a fully AI-centric company, however, earnings in 2025 will be impacted by higher investments and efficiency measures. Specifically, the company expects revenue growth of 7 percent to around EUR 930 million. Adjusted EBIT is expected to decline by 12 percent to around 68 million.