Alten (ATE) H2 2024 earnings summary

Executive summary

• Revenue reached €4,143.3m in 2024, up 1.8% year-over-year, with France growing 4.8% and international markets up 0.4%.

• Organic growth was -0.2% year-over-year, with total growth at 1.8% due to M&A; this is unprecedented outside of crisis years.

• Margins held up in France due to productivity initiatives, but overall operating profit on activity declined to 9.1% of revenue.

• Net income fell 20.1% to €186.4m (4.5% of revenue), impacted by goodwill impairment in the UK and Germany.

• Headcount increased to 57,700, with M&A adding 1,350 engineers; organic headcount declined by 400-450.

Financial highlights

• Operating profit on activity was €376.5m (9.1% margin), down from 9.4% in 2023.

• Operating result was €277m (6.7% of revenue), down from €319.9m (7.9%).

• Free cash flow reached €333.2m, representing 8% of revenue, up 81% year-over-year.

• Net cash position at year-end was €275.5m; gearing at -12.5%.

• SG&A ratio improved by 30-40 bps, with cost reductions offsetting some margin pressure.

Outlook and guidance

• Management expects a challenging H1 2025 due to fewer working days and continued sluggishness, but is cautiously optimistic for H2 if macro conditions improve.

• No clear sign of organic growth resuming yet; stabilization is expected before any rebound.

• Margins are expected to be under 8% in H1 2025, with potential improvement in H2.

• Targeting over 70,000 engineers and further international expansion, especially in high-potential countries.

• Plans to double offshore delivery capacity, notably in India.