Teleperformance (TEP) CMD 2025 summary

Strategic direction and transformation

• Launched TP.ai FAB, a modular, enterprise-grade AI platform to orchestrate human and AI collaboration, scale automation, and deliver vertical-specific solutions.

• Strategy centers on a 3-pillar approach: grow the core with AI, extend vertical plays, and capture new AI opportunities, supported by partnerships with leading tech firms and academic institutions like Carnegie Mellon University.

• Accelerating up to €100 million in AI investments in 2025, leveraging over 200 AI projects launched in 2024, and fostering a culture of change with a strengthened management team.

• Ongoing transformation includes acquisitions such as AgentsOnly and ZP, and integration of specialized services to deepen client relationships and address high-value, niche markets.

• Emphasis on integrating AI to augment human expertise, focusing on emotional intelligence, rational decision-making, and future-adaptive, model-agnostic solutions.

Financial outlook and capital allocation

• Targets 4%-6% organic revenue growth and ~15.5% recurring EBITA margin by 2028, with progressive improvement expected in 2026 and 2027.

• Expects to generate ~€3 billion cumulative net free cash flow over 2026-2028, with 20% allocated to AI and transformation, 30% to debt reduction, and 50% to shareholder returns via dividends and buybacks.

• Maintains a strong balance sheet, targeting a net debt/EBITDA ratio of 1.2 by 2028 and supporting a BBB+ credit rating.

• CapEx expected to remain stable, with most infrastructure investments shifting to OpEx due to cloud migration.

• Plans to invest ~20% of net free cash flow in AI and transformation, including partnerships and acquisitions.

AI, data services, and client solutions

• AI is at the top of client agendas, with TP.ai FAB enabling end-to-end, modular, and scalable solutions across industries.

• Data services positioned as a growth engine, offering annotation, analytics, and human-in-the-loop expertise for AI model training and regulatory compliance.

• Human-AI orchestration is central, with dynamic, self-learning systems that improve agent productivity and customer outcomes.

• Expansion into high-growth adjacencies such as digital marketing, consulting, and technology, leveraging AI to move up the value chain and increase value share.

• Specialized services (e.g., Health Advocate, LanguageLine, ZP, AgentsOnly) integrated with core offerings to address complex, regulated, and mission-critical client needs.