Veolia (VIE) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with record results, exceeding guidance and achieving the 2027 ROCE target two years early, driven by strong international growth and major acquisitions in Water Technologies and Hazardous Waste.

• Portfolio transformation advanced with two multibillion acquisitions, accelerating international and technology-driven growth.

• Shareholder returns enhanced via a multi-year share buyback and a proposed 7% dividend increase to €1.50 per share.

• Suez integration completed, delivering €534M in synergies, above target.

• Strong fundamentals and sustained demand support ambitious 2026 guidance.

Financial highlights

• Revenue reached €44,396M, up 2.8% year-over-year at constant scope and forex, excluding energy prices.

• EBITDA rose to €7,050M, up 6.3% like-for-like, with a margin of 15.9% (+70bps).

• Current net income (group share) was €1,643M, up 9.1%; ROCE after tax reached 9.4%, two years ahead of target.

• Net financial debt at €19,657M, leverage ratio at 2.79x, below the 3x threshold.

• Net free cash flow improved to €1,178M, with DSO reduced by 5 days to 74 days.

Outlook and guidance

• 2026 guidance: organic EBITDA growth of 5%-6%, current net income growth of at least 8% at constant Forex, and continued dividend growth in line with EPS.

• Clean Earth acquisition expected to close mid-2026, accretive from 2027, with €2bn+ in asset disposals planned post-closing.

• Leverage ratio to remain at or below 3x, even after Clean Earth integration.

• GreenUp trajectory fully confirmed, targeting 10% average annual net income growth over four years.