Elis (ELIS) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenue increased by 5.3% year-over-year, with organic growth of 4.2% driven by a strong summer in Hospitality and robust workwear demand, especially in France and Southern Europe.

• Commercial momentum remained positive across most countries, with notable performance in Latin America due to outsourcing and price adjustments for labor cost inflation.

• The client portfolio's diversity and geographic spread helped offset slowdowns in certain European sectors.

• The group continued its targeted bolt-on acquisition strategy, contributing 1.7% to Q3 reported revenue, with several acquisitions under consideration.

Financial highlights

• Q3 2025 reported revenue reached €1,248.0 million, up from €1,184.9 million in Q3 2024.

• Organic revenue growth for Q3 was 4.2%, with external growth at 1.7% and a -0.5% FX impact.

• Full-year 2025 organic revenue growth is expected to be slightly below 4%, factoring in a -0.3% negative calendar effect.

• Adjusted EBITDA margin, adjusted EBIT margin, headline net income per share (fully diluted), and free cash flow are all expected to be slightly higher than in 2024.

Outlook and guidance

• 2025 financial objectives are confirmed, with expectations for improved margins and free cash flow.

• Financial leverage ratio is projected to decline by approximately 0.1x by year-end 2025 compared to year-end 2024.

• The share buyback program of €150 million is nearing completion, with €130 million already repurchased.