STEF (STF) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 rose 6.4% year-over-year to €2,474.1m, driven by organic and external growth, as well as international expansion.

• Net income dropped 76.7% to €15.8m, mainly due to a €30m provision for an Italian tax audit and higher corporate tax in France.

• Operating income fell 47.6% to €55.9m, with margin declining to 3.7% from 4.9%, reflecting tax, integration, and volume pressures.

• International activities now represent 44% of group revenue, with strong growth in Belgium, Spain, and the UK.

Financial highlights

• EBITDA was stable at €216.3m, down 1% year-over-year.

• Current EBIT declined 20% to €79.9m; profit before tax fell 59% to €36.2m.

• EPS decreased to €1.26 (basic) from €5.44 in H1 2024.

• Free cash flow improved to -€24.5m from -€94.5m in H1 2024.

• Net financial debt increased to €1,453m, with gearing at 1.17.

Outlook and guidance

• Focus for H2 2025 is on restoring profitability, operational efficiency, and integrating recent acquisitions.

• Continued investment in digital transformation, real estate, and energy transition across Europe.

• Recently signed logistics contracts and the planned acquisition in Switzerland are expected to support growth.

• No significant changes to risk factors or uncertainties expected for H2 2025.