Alten (ATE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €2,084.1M, down 1.1% year-over-year, with a 5.6% organic decline, mainly due to fewer working days and a sharp drop in the Automotive sector.

• Operating profit on activity fell 14.2% to €152.1M (7.3% margin, down from 8.4%), impacted by calendar effects and lower gross margin in some geographies.

• Net income attributable to shareholders dropped 30.2% to €82.6M (4.0% of revenue), down from €118.2M (5.6%) in H1 2024.

• France showed resilience with 3.8% revenue growth, while Germany, Nordics, and North America faced profitability challenges.

• Cash position remained stable at €275.9M, with gearing at -12.6%.

Financial highlights

• Operating profit was €124.7M (6.0% of revenue), down 21.9% year-over-year, including €11.4M in share-based payments and €9.9M in non-recurring costs.

• Free cash flow was €78.4M (3.8% of revenue), with 12-month rolling at 7.5%.

• Capex remained low at €7.7M (0.4% of revenue).

• International revenue declined 3.5%, France grew 3.8%.

• Gearing stood at -12.6%, indicating strong investment capacity.

Outlook and guidance

• Organic revenue decline for full-year 2025 expected between -5.2% and -5.5%, with operating margin of activity projected at 8.0% to 8.1%.

• Visibility remains limited for the second half; recovery anticipated in 2026.

• Macroeconomic environment remains uncertain and volatile.