Atos (ATO) Q2 2025 earnings summary

Executive summary

• H1 2025 performance met expectations, with revenue stabilization and progress on the Genesis restructuring plan, now halfway complete and delivering initial benefits.

• Three pillars of the Genesis Plan are completed, with significant cost reductions and operational improvements underway.

• Governance was strengthened with a new leadership team, a new board member, and a reverse stock split executed.

• SPA signed with the French state for Advanced Computing, with closing expected in H1/Q2 2026.

Financial highlights

• H1 2025 revenues were €4,020m, down 17.4% organically year-over-year, stabilizing at about €2 billion per quarter.

• Operating margin reached €113 million (2.8% of revenue), up 15% organically year-over-year.

• Free cash flow improved to -€96 million from -€593 million year-over-year.

• Net debt (excluding IFRS 9) increased to €1,681m at June 30, 2025, with liquidity at €1.8 billion.

• Net income group share was -€696 million, improved from -€1,941 million year-over-year, impacted by restructuring and other charges.

Outlook and guidance

• 2025 guidance reaffirmed: ~€8.5 billion revenue, ~4% operating margin, and net cash change before debt repayment of ~-€350m.

• 2026 expected to see a rebound in top-line growth and positive free cash flow before debt repayment and M&A.

• 2028 targets: 5–7% top-line growth, ~10% operating margin, and net debt/EBITDA below 1.5x.

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