Orange (ORA) Q2 2025 earnings summary

Executive summary

• H1 2025 delivered 3.8% EBITDAAL growth and a 7.7% increase in organic cash flow, with margin up 0.7 points, driven by strong performance in Africa & Middle East and efficiency gains in France.

• Revenue reached €19.85 billion, up 0.3% year-over-year, with Africa & Middle East up 12.8% and stable performance in Europe, offset by declines in France and Orange Business.

• Net income was a €105 million loss due to a €1,272 million after-tax charge for the GEPP agreement in France; excluding this, net income was €1,167 million.

• Upgraded full-year 2025 guidance to EBITDAAL growth above 3% and organic cash flow target of at least €3.6 billion.

• Robust commercial performance in France, Europe, and MEA, with MEA showing double-digit revenue and EBITDAAL growth for the tenth consecutive half.

Financial highlights

• EBITDAAL grew 3.8% year-over-year to €5,675 million, with margin up 0.7 points to 28.8%.

• Organic cash flow from telecom activities rose 7.7% to €1,670 million; free cash flow all-in declined due to higher license payments.

• Economic CAPEX increased 4.1% to €3,023 million, mainly for network investments in Africa & Middle East and Europe.

• Net financial debt stood at €23,294 million, with a leverage ratio of 1.88x EBITDAAL and liquidity of €16.2 billion.

• EPS excluding GEPP provision was €0.29.

Outlook and guidance

• Upgraded 2025 guidance: EBITDAAL growth above 3%, organic cash flow from telecom activities of at least €3.6 billion, and net debt/EBITDAAL ratio around 2x medium-term.

• Dividend floor set at €0.75 per share for 2025, with an interim dividend of €0.30 to be paid in December.

• Africa & Middle East targets double-digit EBITDAAL growth for 2025; Europe aims for low single-digit EBITDAAL growth.

• Orange Business targets halving EBITDAAL decline in 2025 and stabilization in 2026.

• Net debt/EBITDAAL targeted around 2x medium term.