Veolia (VIE) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results, with revenue of €11,507M and EBITDA of €1,695M, up 5.5% organically, fully in line with annual objectives and confirming guidance for the year, despite macroeconomic uncertainty.

• Strategic acquisition of CDPQ's 30% minority stake in Water Technologies & Solutions for ~$1.5bn, achieving full ownership and unlocking ~€90M in annual synergies by 2027.

• Business model demonstrates resilience and growth, with diversified global footprint, minimal macroeconomic exposure, and robust contract renewal rates (>90%).

• Net financial debt decreased year-over-year to €18,855M, with leverage ratio improved to 2.75x from 2.88x, and strong financial headroom.

• 2025 and 2027 guidance, including 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 (+1.5% at constant scope and exchange rates).

• EBITDA rose 5.5% like-for-like to €1,695M, with margin up 60bps to 14.7%.

• Current EBIT increased 8.4% to €915M.

• Net financial debt at €18,855M, down €142M year-over-year; leverage ratio at 2.75x.

• Efficiency gains of €91M and Suez merger synergies at €460M, targeting €530M by end 2025.

Outlook and guidance

• Full-year 2025 guidance and GreenUp Plan confirmed: organic revenue and EBITDA growth of 5–6%, efficiency gains above €350M, cumulative synergies of €530M by end-2025.

• Current net income Group share expected to grow ~9% at constant forex; leverage ratio to remain below 3x.

• Dividend to grow in line with EPS; share buyback plan to neutralize employee shareholding impact.

• 2027 targets reaffirmed: net income CAGR of 10%, ROCE above 9%, and €8bn+ EBITDA including synergies.