OVH Groupe (OVH) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue reached €555.3 million, up 5.5% like-for-like, with adjusted EBITDA at €227.2 million and a record 40.9% margin, driven by Public Cloud and operating leverage.

• Strategic initiatives included launching a Defence vertical, intensified sales focus, and the creation of an AI Lab following the Dragon LLM acquisition.

• CapEx was front-loaded to secure supply and mitigate component cost inflation amid global supply chain disruptions.

• Major contract signed with Alchemy, making the company the primary infrastructure provider for global Web3 node operations.

Financial highlights

• Revenue: €555.3 million (+5.5% LFL, +3.6% reported); adjusted EBITDA: €227.2 million (40.9% margin, up 0.9 pts YoY); net income: €5.9 million, down from €7.2 million YoY.

• CapEx: €238.5 million (42.9% of revenue), front-loaded to secure supply and contain inflation.

• Unlevered free cash flow: €32.3 million; levered free cash flow: €-14.2 million after leases and financial charges.

• Net debt: €1,125 million, leverage ratio 2.6x EBITDA, available liquidity: €236 million.

Outlook and guidance

• FY2026 guidance: organic revenue growth of 5–7%, adjusted EBITDA margin above FY2025, CapEx at 33–35% of revenue (excluding €50 million locked-in stock for FY2027), and positive levered free cash flow.

• Exceptional €50 million investment in memory components and disks for FY2027, financed through dedicated facilities.

• Price increases implemented tactically and may be adjusted further as needed.