Alten (ATE) H2 2025 earnings summary

Executive summary

• Revenue declined 1.1% year-over-year to €4,099M, with France up 4.3% and international down 3.7%.

• Organic revenue fell 4.5%, mainly due to a sharp drop in the Automotive sector (-16%) and declines in Telecoms, Electronics, and Public Sector.

• Operating profit on activity was €346.5M (8.5% of revenue), above the anticipated 8.1%.

• Net income dropped 42.6% to €106.9M, impacted by non-recurring items and goodwill impairment.

• Free cash flow was €239.9M (5.9% of revenue), despite significant non-recurring items.

Financial highlights

• Operating profit on activity margin decreased from 9.1% to 8.5% year-over-year.

• Operating profit fell 28% to €199.6M (4.9% of revenue), impacted by non-recurring costs and goodwill impairment.

• Net cash position at year-end was €390M, with gearing at -17.5%.

• Working capital requirements improved by €33.5M, aided by better DSO and lower activity.

• Significant goodwill impairment of €67.4M and non-recurring profit/loss of -€46.3M.

Outlook and guidance

• Q4 2025 showed sequential stabilization, with Civil Aeronautics and Banking/Finance returning to growth.

• Visibility remains limited for early 2026; Q1 is expected to confirm trend reversal and refine full-year outlook.

• Civil Aeronautics, Banking, Energy, and Defense sectors expected to drive growth in 2026.

• Targeting a rapid return to an operating profit on activity (OPA) margin of around 10%.