Elis (ELIS) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue rose 3.6% to €1,131.9m, with organic growth of 2.5%, despite a -1.5% negative calendar effect.

• Outsourcing trends and new contract wins in workwear and cleanroom segments supported growth.

• Hospitality segment performed well globally, offsetting weather and calendar headwinds.

• Pricing actions across geographies offset cost inflation, maintaining profitability.

• Three bolt-on acquisitions in Spain, Germany, and Switzerland contributed to external growth.

Financial highlights

• Q1 2025 organic revenue growth was 2.5% year-over-year; reported growth was 3.6%.

• External growth contributed 2.1% to revenue, with a -1.0% FX impact.

• France: revenue up 1.9% (organic), driven by workwear and healthcare.

• Central Europe: revenue up 9.1% (1.9% organic, 7.0% external), boosted by acquisitions.

• Latin America: organic growth 6.5%, but total revenue down 5.8% due to currency headwinds.

Outlook and guidance

• Full-year organic revenue growth expected slightly below 4%, factoring in a -0.3% calendar effect.

• Adjusted EBITDA margin, adjusted EBIT margin, headline net income per share, and free cash flow all expected to be slightly higher.

• Financial leverage ratio projected to decline by ~0.1x by year-end 2025.

• 2025 outlook confirmed, with no direct negative impact expected from US tariffs.