Teleperformance (TEP) H1 2025 earnings summary

Executive summary

• H1 2025 revenue reached €5,116 million, up 1.5% like-for-like and 0.8% reported, driven by Core Services growth, new AI-powered solutions, and the ramp-up of new contracts, despite currency headwinds and Specialized Services decline.

• Core Services saw strong momentum, especially in EMEA & APAC, with H1 revenue up 2.9% like-for-like and Q2 growth accelerating to 3.5%.

• Specialized Services faced significant headwinds, declining 7.0% like-for-like due to the non-renewal of a major visa contract and US market volatility, but excluding this, grew 3.0% like-for-like.

• Profitability remained stable at constant FX, with recurring EBITA margin at 13.6% reported (13.9% at constant FX); efficiency measures and AI implementation supported resilience.

• Strategic initiatives included the launch of the 'Future Forward' AI-driven plan, major acquisitions (ZP, Agents Only), and continued integration of Majorel.

Financial highlights

• EBITDA before non-recurring items was €958 million (18.7% of revenue); recurring EBITA was €697 million (13.6% margin).

• Net profit (Group share) was €249 million, down from €291 million, with diluted EPS at €4.19 (vs. €4.83 in H1 2024).

• Net free cash flow for H1 2025 was €259 million, expected to improve in H2; sustainable net free cash flow of ~€1 billion targeted for the year.

• Net debt increased to €4,482 million at June 30, 2025, mainly due to acquisitions and investments.

• Dividend of €4.20 per share paid in May 2025, totaling €247.9 million.

Outlook and guidance

• 2025 group like-for-like revenue growth expected at the lower end of the 2–4% range.

• Recurring EBITA margin guidance at 15–15.1% at constant FX; actual margin will depend on currency movements.

• Sustainable net free cash flow of ~€1 billion before non-recurring items reaffirmed.

• 2028 ambitions: 4–6% organic revenue growth, ~15.5% recurring EBITA margin, and €3 billion cumulative net free cash flow over 2026–28.

• No full recovery expected in Specialized Services in H2; cautious on LanguageLine Solutions and TLScontact.