Kyndryl (KD) Outlines Growth Strategy At 2024 Investor Day

Kyndryl Holdings, Inc. (NYSE: KD), the world's largest IT infrastructure services provider, today hosted its 2024 Investor Day. At the event, senior management outlined the Company's growth strategy, multi-year outlook and capital allocation priorities, including initiating a $300 million share repurchase program.

"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, triple the Company's expected fiscal 2025 amount, with roughly 100% conversion of adjusted pretax income less cash taxes into adjusted free cash flow
• Adjusted pretax income of at least $1.2 billion, more than doubling versus fiscal 2025
• Adjusted EBITDA margin of 20% to 22%, 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.

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