Orange (ORA) Q2 2025 earnings summary

Executive summary

• EBITDAAL grew 3.8% year-over-year to €5,675 million, with margin up 0.7 points to 28.8% and organic cash flow up 7.7% to €1,670 million, driven by strong commercial performance in France, Europe, and Africa & Middle East.

• Revenues reached €19.9 billion, up 0.3% year-over-year, led by Africa & Middle East (+12.8%) and stable Europe, offset by declines in France and Orange Business.

• Net income was a loss of €105 million 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.

• Africa & Middle East delivered double-digit EBITDAAL growth for the tenth consecutive half, supported by mobile data, fixed broadband, Orange Money, and B2B expansion.

Financial highlights

• Group revenues up 0.3% year-over-year to €19.9 billion; EBITDAAL at €5.7 billion, up 3.8%; margin at 28.8%.

• Organic cash flow from telecom activities rose 7.7% to €1,670 million; free cash flow at €1.1 billion, slightly down due to license payment phasing.

• eCAPEX increased 4.1% to €3,023 million, mainly for network investments in Africa & Middle East and Europe; eCAPEX/sales at 15.2%.

• Net financial debt at €23,294 million, with net debt/EBITDAAL ratio at 1.88x; robust liquidity position 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 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 per share 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.

• France expected to see flat to small positive retail ex-PSTN growth in H2, with continued EBITDAAL growth driven by efficiency.

• Disciplined eCAPEX spending and robust liquidity maintained.