Elior Group (ELIOR) H1 2026 earnings summary

Executive summary

• Achieved organic revenue growth of 1.3% year-over-year in H1 2025-2026, with consolidated revenue at €3,179 million, mainly driven by Multiservices, while Contract Catering faced delays in new contract start-ups.

• Adjusted EBITA/EBITDA margin was 3% reported, or 3.9% excluding a €25 million provision for an Italian contract dispute, down 20 bps to 1.1 pts year-over-year.

• Net result group share was €21 million, or €46 million excluding the Italian exceptional item; free cash flow was €9 million, reflecting seasonality and investment policy.

• Fitch upgraded issuer rating to BB- with stable outlook, reflecting improved credit profile and financial discipline.

• Commercial momentum remains strong with recent large contract wins, though revenue conversion is delayed.

Financial highlights

• Reported revenue was €3.179 billion, down 1.1% year-over-year due to a -2.6% FX effect, but organic growth was +1.3%.

• Adjusted EBITA/EBITDA declined from €132 million to €95 million year-over-year; margin narrowed from 4.1% to 3%.

• Net result dropped to €21 million from €43 million year-over-year; net margin at 0.7% (down from 1.3%).

• Free cash flow was €9 million, down from €205 million last year due to working capital effects and higher CapEx.

• Net debt increased to €1.182 billion at March 2026, leverage ratio at 3.6x EBITDA, below the 4.5 covenant.

Outlook and guidance

• Organic revenue growth for FY 2025-2026 expected between 1%-2%, revised down from previous 3%-4%.

• Adjusted EBITA/EBITDA margin (excluding the Italian exceptional item) to be around 3% for the fiscal year, down from prior 3.5%-3.7%.

• Leverage ratio expected around 3.5x at September 2026, remaining below covenant limits.

• CapEx to remain around 3% of revenue; non-recurring cash below €10 million; working capital change between €0m and €20m.

• More cautious working capital assumption due to new French e-invoicing reform and revenue trends.