Elior Group (ELIOR) H2 2025 earnings summary

Executive summary

• Achieved a significant turnaround, returning to profit for the first time since 2019, with adjusted EBITDA exceeding €200 million and profit before tax of €65 million.

• Dividend payment of €0.04 per share approved, resuming shareholder returns and reflecting restored confidence.

• Robust free cash flow generation of €228 million and reduced leverage ratio to 3.3x, below covenant.

• Solid profitable growth and improved operating performance, with a focus on disciplined growth and long-term ambition.

• Net debt reduced by €144 million, supporting further deleveraging.

Financial highlights

• Group revenue reached €6.15 billion, up 1.6% year-over-year, with organic growth at 1.3%.

• Adjusted EBITDA/EBITA margin improved by 50 bps to 3.3%; excluding temporary staffing, margin reached 3.5%.

• Net profit of €88 million, a significant improvement from a prior year loss.

• Free cash flow was €228 million, representing 2/3 of EBITDA.

• CapEx increased to €145 million (2.3% of revenue), driven by investments in central kitchens, network expansion, and transformation programs.

Outlook and guidance

• Organic growth expected between 3%-4% for fiscal year 2025-2026, driven by price increases and business development.

• Adjusted EBITDA/EBITA margin guidance of 3.5%-3.7%, targeting pre-COVID levels.

• Leverage ratio expected to decrease to around 3x by September 2026.

• Dividend payout expected to trend toward 30% of net result group share, subject to AGM approval.

• Focus remains on profitable growth, deleveraging, and investment for future expansion.