Atos (ATO) investor relations material

Executive summary

• Q1 2026 delivered solid financial performance and gradual improvement in fundamentals, with the highest book-to-bill in five years despite a volatile macro environment.

• Genesis transformation plan is nearing completion, extended to end of 2026 with increased savings target above EUR 700 million, and is delivering profitability gains.

• Strategic focus on Agentic AI, sovereignty, and cybersecurity, with new offerings, manifestos, and R&D investment driving commercial momentum.

• FY targets confirmed, with narrowed organic growth range and continued execution of transformation initiatives.

• Divestitures of Bull, Ideol, Ideal GRP, and pending Latin/South America sales streamline operations and perimeter.

Financial highlights

• Q1 2026 revenue at go-forward perimeter was EUR 1.64 billion, reflecting an 11% organic decline year-over-year.

• Book-to-bill ratio improved to 87% (89% for main business unit), with qualified pipeline up by nearly EUR 1 billion.

• Net change in cash at -EUR 47 million, including EUR 71 million restructuring spend; underlying cash generation estimated at EUR 24 million+.

• Group liquidity at EUR 1.736 billion as of March 31, 2026, above the EUR 1.1 billion covenant threshold.

Outlook and guidance

• FY 2026 organic revenue growth guidance narrowed to -1% to -5%, with operating margin targeted at 7%.

• Positive net change in cash expected for 2026; acceleration of profitable growth and 10% operating margin targeted for 2027-2028.

• Rebound in revenue anticipated from Q3 2026, with Q2 expected at -6% and positive growth in Q3 and Q4.

• Visible deleveraging targeted, aiming for net debt/OMDAL below 1.5x.