• Revenue: $2.027 billion for the full year, down 3% year over year.
• Adjusted EPS: $0.82, up $0.21 or 34% over the prior year.
• Adjusted EBIT: $385 million, up $77 million or 25% over the prior year.
• Free Cash Flow: $290 million, excluding $86 million of restructuring payments.
• Q4 Revenue: $516 million, down 2% versus the prior year.
• Q4 Adjusted EBIT: $114 million, a 33% increase versus the prior year.
• Q4 Adjusted EPS: $0.32, up $0.12 year over year.
• Q4 Free Cash Flow: $145 million, excluding $32 million of restructuring payments.
• Shipping Technology Revenue Growth: 18% in the fourth quarter.
• Presort Revenue: $663 million for the full year, up from $618 million the prior year.
• Presort Q4 Revenue: $180 million, up 10% over the prior year.
• Presort Adjusted EBIT: $166 million for the full year, up 49% versus the prior year.
• Presort Q4 Adjusted EBIT: $52 million, an increase of 52% year over year.
• Cost Reduction Savings: $120 million in annualized savings by the end of 2024, with a target of $170 million to $190 million in net annualized savings.
• 2025 Revenue Guidance: Between $1.95 billion and $2 billion.
• 2025 Adjusted EBIT Guidance: Between $450 million and $480 million.
• 2025 Adjusted EPS Guidance: Between $1.10 to $1.30 per share.
• 2025 Free Cash Flow Guidance: Between $330 million and $370 million.

• Warning! GuruFocus has detected 8 Warning Signs with PBI.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pitney Bowes Inc (NYSE:PBI) achieved a 34% increase in adjusted EPS, reaching $0.82, compared to the previous year.
• The company successfully reduced costs, achieving $120 million in annualized savings by the end of 2024, with a target of $170 million to $190 million in net annualized savings.
• Pitney Bowes Inc (NYSE:PBI) exited the global e-commerce segment, simplifying its business structure and unlocking more than $200 million for efficient deployment.
• The Presort business segment showed strong performance, with adjusted EBIT growing nearly 50% in 2024.
• The company has authorized a $150 million share repurchase program, indicating a commitment to returning capital to shareholders.

Negative Points

• Pitney Bowes Inc (NYSE:PBI) reported a 3% decline in full-year revenue, totaling $2.027 billion.
• The company incurred $165 million in one-time costs related to exiting the global e-commerce segment.
• SendTech's equipment revenue declined by 16% year over year in the fourth quarter.
• Pitney Bowes Inc (NYSE:PBI) anticipates a modest decline in revenue for 2025, primarily due to headwinds in SendTech.
• The company faces ongoing restructuring payments, with $45 million expected in 2025 related to the GEC exit.

Q & A Highlights

Q: Can you clarify the one-time items that contributed to the better-than-expected EBIT performance? A: The outperform was due to better business performance and additional savings from overhead reductions. These savings were realized quicker than anticipated. - John Witek, Interim CFO

Q: Are the higher EBIT margins in the Presort segment sustainable? A: We expect the EBIT margins to remain in the high 20% range, driven by pricing, volume mix, and productivity improvements. - John Witek, Interim CFO

Q: How do you see the SendTech segment evolving, particularly with the product migration headwinds? A: We expect shipping growth to continue at double-digit rates, eventually outweighing the decline in the mailing business by 2026. - John Witek, Interim CFO

Q: What is the plan for the $150 million share repurchase authorization? A: The repurchase program is over the next three years. We will be opportunistic and prudent, looking for market situations that make sense for us. - Lance Rosenzweig, CEO

Q: What are your volume expectations for the Presort business in 2025? A: We expect similar volumes with a focus on the mix of first-class, marketing mail, and flats. Project work could also influence volumes. - John Witek, Interim CFO

Q: How will you approach debt reduction with significant free cash flow expected? A: We will prioritize paying down nearer-term maturities and more expensive debt, while being open to opportunities to purchase longer-term debt at attractive prices. - Lance Rosenzweig, CEO

Q: Can you elaborate on the pension charge and its impact? A: The $91 million non-cash pension charge was due to a lump sum campaign, improving our risk balance. It reduced our exposure to market volatility. - John Witek, Interim CFO

Q: What is the outlook for company revenue growth and reaching an inflection point? A: We do not anticipate revenue growth in 2025, but we are working towards it and are excited about future opportunities. - Lance Rosenzweig, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.