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 growth, acquisitions, and international expansion.

• Operating income fell 47.6% to €55.9m, impacted by tax reassessments, surcharges, and integration costs.

• Net income dropped 76.7% to €15.8m, reflecting exceptional tax contributions, a €30m-€31m VAT provision in Italy, and a declining tax base.

• International activities now represent 44% of revenue, with strong growth in Belgium, Spain, and the UK, but profitability impacted by provisions and operational incidents in Italy.

• The Group maintained a strong investment policy, focusing on real estate, digital transformation, and sustainability initiatives.

Financial highlights

• Revenue: €2,474.1m (+6.4% year-over-year).

• Operating income: €55.9m (-47.6% year-over-year).

• Net income Group share: €15.8m (-76.7% year-over-year).

• EBITDA was stable at €216.3m, down 1.2% year-over-year.

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

Outlook and guidance

• Focus for H2 2025 on restoring profitability through operational efficiency, finalizing synergies from recent acquisitions, and advancing digital and real estate projects.

• Leadership strategy continues with the integration of Christian Cavegn AG in Switzerland, expanding territorial coverage and strengthening the network.

• The group maintains its 2022-2026 strategic plan, targeting €5bn in revenue by end-2026.