Orange (ORA) Q2 2026 earnings summary

Executive summary

• Achieved record H1 2026 revenue of €20.95 billion (+3.5% year-over-year) and EBITDAAL of €6.13 billion (+5.0%), driven by strong retail, Africa & Middle East, and Europe 6 performance.

• Net income surged to €3.6 billion, with adjusted net income up 11.8% to €1.35 billion, mainly due to MasOrange revaluation and contract settlement gains.

• Completed full acquisition of MasOrange in Spain (fully consolidated from June 2026) and signed MoU for SFR acquisition in France, reinforcing market leadership.

• Upgraded full-year 2026 EBITDAAL guidance to above 4% and organic cash flow guidance to €4.3 billion.

• Strategic initiatives include a joint venture for a 400 MW data center platform in France and accelerated sustainability progress (32% GHG reduction since 2020).

Financial highlights

• H1 2026 revenues reached €20.95 billion (+3.5% year-over-year); EBITDAAL at €6.13 billion (+5.0%); EBITDA margin improved by 0.4 points to 29.3%.

• Operating income rose to €4.77 billion; adjusted net income at €1.35 billion (+11.8%); net income at €3.6 billion.

• Free cash flow all-in increased to €1.86 billion (+71.3% year-over-year); organic cash flow at €2.2 billion (+€0.5 billion year-on-year).

• Net financial debt stood at €35.7 billion (up €13.2 billion, mainly due to MasOrange acquisition); net debt/EBITDAAL ratio at 2.4x.

• eCAPEX at €3.18 billion (15.2% of revenues), with disciplined allocation and increased investment in Africa & Middle East.

Outlook and guidance

• Upgraded 2026 EBITDAAL growth guidance to above 4% (previously above 3%) and organic cash flow to €4.3 billion (previously €4 billion).

• Dividend set at €0.79 per share for 2026, with an interim dividend of €0.30 to be paid in December 2026.

• Medium-term net debt/EBITDAAL target remains around 2x; dividend floor of €0.85 per share confirmed for 2028.

• Confident in achieving stable plus retail revenues (excluding PSTN) and EBITDA growth in France for 2026.

• MasOrange expected to deliver low single-digit EBITDAAL growth in H2 and over €430 million cumulative synergies.