Atos (ATO) Q2 2025 earnings summary

Executive summary

• H1 2025 performance met expectations, with revenue stabilization and significant progress on the Genesis transformation plan, over 50% complete by June and already improving profitability.

• Operating margin increased to €113m (2.8% of revenue), up 15.4% year-over-year, despite a 17.4% organic revenue decline to €4,020m.

• Free cash flow improved to -€96m from -€593m in H1 2024, reflecting disciplined cash management and restructuring costs.

• Net loss group share reduced to -€696m from -€1,941m year-over-year, driven by lower restructuring and non-recurring charges.

• Share purchase agreement signed with the French State for the sale of Advanced Computing activities, expected to close in H1 2026.

Financial highlights

• H1 2025 revenue: €4,020m, down 17.4% organically year-over-year due to contract exits and soft market conditions.

• Operating margin: €113m (2.8% of revenue), up from €98m (2.0%) in H1 2024.

• Free cash flow before debt repayment, M&A, and FX at -€96m, a significant improvement from -€593m in H1 2024.

• Net debt (excluding IFRS 9): €1,681m at June 30, 2025, up from €1,238m at end-2024; liquidity at €1,804m.

• Net income group share: -€696m, improved from -€1,941m in H1 2024.

Outlook and guidance

• Full year 2025 guidance confirmed: ~€8.5bn revenue, ~4% operating margin, net cash change before debt repayment of ~-€350m.

• 2026: positive organic growth and net cash change before debt repayment and M&A expected.

• 2028: revenue target €8.5–9bn (5–7% CAGR), operating margin ~10%, leverage ratio below 1.5x, aiming for BB rating in 2027.

• Q3 2025 revenue expected to remain stable, with growth resuming in Q4.