Elis (ELIS) H1 2025 earnings summary

Executive summary

• H1 2025 revenue reached €2,343.1 million, up 4.3% year-over-year, with 3.5% organic growth and 1.8% from acquisitions, supported by strong commercial momentum, especially in workwear, hospitality, and Southern Europe.

• Adjusted EBITDA rose 5.1% to €813.8 million, margin up 30 bps to 34.7%; adjusted EBIT increased 3% to €353.8 million, margin slightly down 20 bps to 15.1%.

• Net income increased 28.6% to €152.5 million; headline net income per share (fully diluted) up 3% to €0.85; free cash flow was €31 million, and financial leverage ratio declined to 1.92x.

• Commercial momentum, positive pricing, and operational improvements offset inflation and macroeconomic challenges.

• All 2025 financial objectives and medium-term targets reaffirmed.

Financial highlights

• Organic revenue growth of 3.5% (restated ~4% for calendar), with 1.8% from M&A and -1% FX impact, mainly from Latin America.

• Adjusted EBITDA margin improved by 30 bps to 34.7%; adjusted EBIT margin at 15.1%, down 20 bps.

• Net income rose 28.6% to €152.5 million; headline net income at €213.2 million, up 2.6%.

• Free cash flow for H1 was €31 million, impacted by seasonal working capital but in line with full-year trajectory.

• Net financial debt at €3,206.5 million, with average cost of debt at 2.8% and average maturity of three years.

Outlook and guidance

• 2025 organic revenue growth expected slightly below 4% due to a -0.3% calendar effect.

• Modest improvement anticipated across all key profitability and cash flow indicators for the full year.

• Financial leverage ratio expected to decrease by ~0.1x by year-end 2025.

• Medium-term (2025–2028) targets: 5–6% annual revenue growth (4% organic, 1–2% M&A), +20 bps annual EBITDA margin improvement, EBIT and EPS to outpace revenue, and €1.5 billion cumulative free cash flow.

• All 2025 financial objectives confirmed.