Elior Group (ELIOR) H1 2026 earnings summary

Executive summary

• Revenue for H1 2025-2026 was €3,179 million, with organic growth of 1.3% year-over-year, mainly driven by Multiservices, while Contract Catering faced delays and a significant one-time item in Italy.

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

• Net profit attributable to owners was €21 million, or €46 million excluding the exceptional item, with free cash flow at €9 million, sharply down from €205 million last year due to higher CapEx and working capital effects.

• Fitch upgraded the issuer rating to BB- with a stable outlook, reflecting improved financial discipline and debt reduction.

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

Financial highlights

• Revenue was €3,179 million, down 1.1% year-over-year due to a -2.6% FX effect, with underlying organic growth of 1.3%.

• Adjusted EBITA/EBITDA margin reached 3% reported, 3.9% excluding the Italian exceptional item, down from 4.1% last year.

• Net profit was €21 million (down from €43 million), with net margin at 0.7% (down from 1.3%).

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

• Net debt increased to €1,182 million at March 2026, leverage ratio at 3.6x EBITDA, below the 4.5x covenant.

Outlook and guidance

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

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

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

• CapEx to remain around 3% of revenue; non-recurring cash below €10 million.

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