Elis (ELIS) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with revenue up 4.9% to €4,796.8 million and adjusted EBITDA up 5.6% to €1,700.1 million, reflecting strong operational execution, commercial momentum, and productivity gains across all geographies.

• Organic growth reached 3.8%, supported by outsourcing trends, pricing actions to offset inflation, and targeted acquisitions contributing up to €91 million in annualized revenue.

• Free cash flow increased to €358.6 million, leverage ratio declined to 1.75x, and fully diluted EPS rose 5.2% to €1.85.

• Tangible progress on ESG and CSR commitments, with most 2025 targets met or exceeded and strong external recognition for sustainability.

• Launched a €150 million share buyback in 2025 and announced a new €500 million program for 2026.

Financial highlights

• Revenue grew 4.9% year-over-year to €4,796.8 million (+5.5% at constant FX); organic growth was 3.8%, M&A added 1.8%, and FX had a -0.7% impact.

• Adjusted EBITDA margin increased by 20 bps to 35.4%; adjusted EBIT up 4.6% to €766.6 million, margin stable at 16.0%.

• Net income rose 8.6% to €366.6 million; fully diluted headline net income per share up 5.2% to €1.85.

• Free cash flow reached €358.6 million (+€12.3 million YoY), with disciplined CapEx and working capital management.

• ROCE improved by 20 bps to 14.7%.

Outlook and guidance

• Organic revenue growth for 2026 expected slightly below 2025, with margin expansion anticipated.

• High single-digit growth in fully diluted EPS projected for 2026, supported by share buybacks.

• Free cash flow expected to grow mid-single digit; leverage ratio targeted to decrease to 1.65x.

• Dividend proposed at €0.48 per share (+7%), with potential share buyback up to €500 million.

• Capital allocation prioritizes bolt-on M&A (€50–150 million/year), regular dividends, and share buybacks.