Stronger-than-expected profitability and lower nonrecurring and transformation-related costs boosted the S&P Global Ratings-adjusted EBITDA figure for Luxembourg-registered SUSE S.A., parent of SUSE Linux, in the fiscal year to Oct. 31, 2024 (fiscal 2024). SUSE's ongoing investment in sales and marketing, combined with new services, is expected to support top-line growth, leading to further EBITDA growth in fiscal 2025. As a result, we forecast that adjusted debt to EBITDA will remain below 6.0x and free operating cash flow (FOCF) to debt will strengthen to more than 5%. The company has committed to reducing its net debt to adjusted cash EBITDA to 3.5x, which is equivalent to adjusted leverage of 5.0x-5.5x. This leverage trend indicates a lower risk that it will releverage
