Thomson Reuters to Present at Barclays Conference: Navigating Growth Amid Strategic Shifts

Thomson Reuters (NYSE: TRI), a global leader in information solutions, is set to highlight its strategic priorities at the Barclays Americas Select Franchise Conference on May 6, 2025. CEO Steve Hasker will deliver a presentation focusing on the company’s financial trajectory, AI-driven innovations, and plans to bolster margins in a competitive landscape. This event arrives amid a year of transformative moves, including the $600 million acquisition of SafeSend and a renewed emphasis on recurring revenue streams.

Financial Momentum and Strategic Ambitions

Thomson Reuters enters the Barclays conference on solid footing. In Q4 2024, the company reported $1.909 billion in total revenue, a 5% year-over-year increase, driven by its “Big 3” segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. These divisions collectively grew 9% organically, outpacing overall revenue growth. Key highlights include:
- Tax & Accounting: Organic revenue rose 7% to $366 million, fueled by the UltraTax platform and the SafeSend acquisition.
- Corporates: Revenue surged 15% to $458 million, aided by the Pagero acquisition and demand for compliance tools like ONESOURCE.
- Reuters News: Despite a 1% revenue decline, the division aims to stabilize through AI-driven content and partnerships.

The company’s adjusted EBITDA margin dipped to 37.6% in Q4 due to investments in AI and integration costs, but management remains confident in its 2025 margin target of ~39%, supported by cost discipline and cross-selling opportunities.

Investor Takeaway: The stock’s 6.2% rise over the past month contrasts with the S&P 500’s -4.3% decline, signaling investor optimism about its AI and compliance-focused strategy.

2025 Outlook: Growth and Margin Expansion

Thomson Reuters has outlined ambitious goals for 2025:
- Organic revenue growth: 7.0–7.5%, with the “Big 3” targeting 9% growth.
- Adjusted EBITDA margin: 39%, up from 38.2% in 2024.
- Free cash flow: $1.9 billion, up from $1.8 billion in 2024.

The SafeSend acquisition, completed in January 2025, is central to these targets. The tax automation platform strengthens Thomson Reuters’ position in the Tax & Accounting segment, which now accounts for nearly 20% of total revenue.

Meanwhile, the dividend continues to be a shareholder-friendly feature. The 10% annual increase to $2.38 per share marks the 32nd consecutive year of dividend growth—a testament to the company’s stable cash flows.

Challenges and Risks

Despite its strengths, Thomson Reuters faces headwinds:
1. Margin Pressure: Rising costs for AI development and integration (e.g., SafeSend) could strain margins further in 2025.
2. Global Economic Uncertainty: Macroeconomic volatility, particularly in Europe and emerging markets, may slow demand for legal and compliance tools.
3. Reuters News Decline: The division’s organic revenue dropped 3% in Q4, and its margins remain under pressure from editorial spending.

Conclusion: A Balanced Play for Income and Innovation

Thomson Reuters’ presentation at the Barclays conference offers investors a critical opportunity to gauge execution against its 2025 goals. With the “Big 3” segments driving 9% organic growth and a $600 million bet on SafeSend, the company is positioning itself for sustained dominance in AI-powered compliance and tax solutions.

While margin pressures and Reuters’ struggles warrant caution, the stock’s 6.2% outperformance of the broader market and 32-year dividend growth streak underscore its resilience. Analysts project $1.06 EPS for Q1 2025, aligning with the company’s guidance.

Investors seeking a blend of reliable income and tech-driven growth should take note. Thomson Reuters’ ability to convert strategic acquisitions into margin expansion—and its focus on recurring revenue—positions it as a defensive yet innovative play in the information services sector.

Final Call: Buy with a 12–18 month horizon, targeting $85–$90 per share by early 2026, assuming margin targets are met. Monitor Q1 earnings (May 1) for clues on execution.

Data sources: Thomson Reuters Q4 2024 earnings release, Barclays conference schedules, and Zacks Investment Research.