RELX — RELX Plc

Summary of RELX Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Underlying Revenue Growth: 7%
• Underlying Adjusted Operating Profit Growth: 9%
• Adjusted Earnings Per Share Growth: 10% at constant currency
• Adjusted Operating Margin: Improved by nearly 1 percentage point to 34.8%
• Cash Conversion: Strong at 99%
• Acquisition Spend: GBP 270 million; completed GBP 1.5 billion share buyback
• Net Debt: GBP 7.2 billion, with a leverage ratio of 2.0x, at the lower end of the typical range
• Dividend Increase: Proposed 7% increase to 67.5p per share

2. Strategic Updates and Business Highlights

• Business Performance: All four business areas (Risk, Business Services, STM, Legal, and Exhibitions) performed well, with adjusted operating profit growth exceeding revenue growth in each segment.
• Risk Segment: Revenue growth of 8% driven by AI-enabled analytics and decision tools; over 90% of revenue from machine-to-machine interactions.
• Business Services: Growth fueled by financial crime compliance and digital fraud solutions.
• Insurance: Strong growth from contributory databases and market-specific solutions.
• STM: Revenue growth of 5%, with strong new product introductions and increasing article submissions.
• Legal: Revenue growth of 9%, driven by AI-enabled legal platforms and tools.
• Exhibitions: Revenue growth of 8%, supported by digital initiatives.

3. Forward Guidance and Outlook

• Continued Growth: Expectation of strong underlying revenue growth with adjusted operating profit growth exceeding revenue growth across all segments.
• Long-term Strategy: Focus on enhancing analytics and decision tools, leveraging AI for product development and customer value.
• Investment Priorities: Organic development remains the primary focus, with selective acquisitions considered based on opportunities.

4. Bad News, Challenges, or Points of Concern

• Print Revenue Decline: Continued proactive reduction in print-related activities, resulting in over 20% revenue decline in that segment.
• Market Competition: Concerns about increased competition in the Legal segment from AI-enabled workflow tools and other software companies.
• Potential Slowdown in STM: Questions about the sustainability of growth in the STM segment amid a challenging U.S. funding environment and potential moderation in open access growth.

5. Notable Q&A Insights

• Legal Segment Competition: Management emphasized the competitive advantage of their comprehensive, trusted content and the strong adoption of their AI tools (e.g., Lexis+ AI).
• STM Corporate Opportunity: Acknowledged the potential for growth in the corporate market, though it remains a small segment currently.
• Risk Market Dynamics: Highlighted the complexity and regulatory environment of the risk market, making it difficult for new entrants to compete effectively.
• New Sales Impact: Strong new sales are expected to support long-term growth, although their immediate impact on 2026 revenues may be modest.

This summary captures the essential financial performance, strategic direction, and challenges faced by RELX, as well as insights from the Q&A session that highlight management's perspective on competition and market opportunities.