Veolia Environnement (VIE) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results, with revenue of €11,507M up 3.9% year-over-year excluding energy prices, and EBITDA of €1,695M up 5.5% organically, demonstrating resilience amid macroeconomic uncertainty.

• The acquisition of CDPQ’s 30% minority stake in Water Technologies and Solutions (WTS) for ~$1.5bn was announced, achieving full ownership and aligning with the GreenUp strategic plan.

• Net financial debt decreased year-over-year to €18,855M, with leverage ratio improved to 2.75x, and strong financial headroom maintained.

• The business model emphasizes resilience and growth, with diversified geographic and sector exposure, and minimal sensitivity to tariffs or GDP.

• 2025 guidance and GreenUp Plan fully confirmed, reflecting strong confidence in the business model.

Financial highlights

• Revenue reached €11,507M, up 3.9% year-over-year excluding energy prices; EBITDA rose 5.5% to €1,695M, with a 60bps margin improvement to 14.7%.

• Current EBIT increased 8.4% to €915M; net financial debt at €18,855M, leverage ratio improved to 2.75x from 2.88x.

• Efficiency gains of €91M and synergies of €25M achieved in Q1, in line with annual targets.

• Organic revenue growth was 3.9% excluding energy prices; positive forex impact of €42M at revenue level and €11M at EBITDA level.

• Net free cash flow before investments and dividends was -€906M.

Outlook and guidance

• 2025 guidance and GreenUp 2024-27 plan fully confirmed: organic EBITDA growth of 5–6%, efficiency gains above €350M, and cumulative synergies of €530M by end-2025.

• Current net income Group share expected to grow ~9% in 2025; leverage ratio to remain below 3x; dividend growth aligned with EPS growth.

• Over €8bn EBITDA targeted for 2027, with ~10% annual growth in current net income Group share over 2023–2027.

• The CDPQ acquisition is expected to be accretive to EPS from 2026 and to enhance ROCE.

• Share buyback plan launched for 2025–2027 to neutralize employee shareholding program impact.