Teleperformance (TEP) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 objectives despite a challenging environment, with group revenue at €10,209 million, up 1.3% like-for-like excluding hyperinflation, but down 0.7% reported year-over-year.

• Core Services maintained stable growth momentum at 2.7% like-for-like, while Specialized Services declined 9.3% due to the non-renewal of a major contract and U.S. market headwinds.

• Major governance changes: Jorge Amar appointed CEO, with several new board members joining, including leaders from Qatar, South Africa, and two independent directors.

• Launched the 'Future Forward' transformation plan, focusing on AI-driven growth, efficiency, and organizational transformation, with over 500 AI projects initiated.

• Board of Directors significantly renewed, with founder Daniel Julien and other top executives stepping down from executive roles.

Financial highlights

• 2025 Group revenue: €10,209 million, up 1.3% like-for-like (LFL) excluding hyperinflation; reported -0.7%.

• EBITDA reached almost €1.5 billion, with a margin of 14.8% excluding currency effects; reported margin at 14.6%.

• Net profit (Group share) roughly flat year-over-year at around €500 million; adjusted net profit: €781 million; diluted EPS: €8.40.

• Record free cash flow generation in H2 2025, exceeding €640 million; full-year net free cash flow at €901 million.

• Dividend proposed to increase from €4.20 to €4.50 per share, up 7%.

Outlook and guidance

• 2026 guidance: like-for-like revenue growth between 0% and 2%, with Q1 expected below annual guidance due to onshore market weakness.

• Recurring EBITA margin expected to remain stable at 14.6% (assuming EUR/USD at 1.20); free cash flow expected between €800 million and €850 million, excluding non-recurring items.

• €70–90 million in one-time restructuring costs expected in 2026, with €56 million already incurred in early measures.

• Cost-saving initiatives targeting over €100 million in run-rate savings, with around €50 million expected to materialize in 2026.

• Mid-term (2028) targets: 4–6% LFL revenue growth, ~15.5% EBITA margin, €3 billion cumulative net free cash flow.