Elior Group S.A.

Elior reported first-half FY 2025-2026 revenue of EUR 3.179 billion, down 1.1% year on year, with a negative foreign exchange impact of 2.6% and organic growth of 1.3%. Adjusted EBITDA was EUR 95 million, for a 3.0% margin reported; excluding the Italian exceptional item, adjusted EBITDA was EUR 120 million, or 3.9%, about 20 basis points below last year. Net result group share was EUR 21 million; excluding the Italian exceptional item, net income was EUR 46 million, with a 1.4% margin versus 1.3% last year. Free cash flow was EUR 9 million, net debt rose to EUR 1.182 billion from EUR 1.125 billion at September 2025, and leverage was 3.6x versus 3.3x at September 2025. For FY 2025-2026, management now expects organic revenue growth of 1% to 2%, adjusted EBITDA margin around 3% excluding the Italian item, leverage around 3.5x at September 2026, CapEx around 3% of revenue, nonrecurring cash below EUR 10 million, and working capital between neutral and a EUR 20 million contribution.

The lead executive framed the half year as evidence of the group’s resilience, highlighting positive organic growth, resilient underlying profitability and a positive net result despite two one-off drags: delayed ramp-up of new contracts and the Italian tariff dispute. He stressed that the guidance reset reflects near-term timing and visibility, not a change in strategy, and repeatedly pointed to the turnaround since 2023 as creating a stronger foundation. He also emphasized medium-term confidence, supported by the order backlog, pipeline, portfolio rationalization and continued investment in growth and efficiency.

Didier Grandpre walked through the numbers in detail, noting reported revenue of EUR 3.179 billion, adjusted EBITDA of EUR 95 million reported and EUR 120 million excluding the Italian exceptional item, and positive free cash flow of EUR 9 million. He said the Italian matter led to a EUR 25 million provision covering expected losses through the end of the contract in April 2027, and stated that no additional EBITDA impact is expected in H2 from that item. On the balance sheet, he highlighted net debt of EUR 1.182 billion, leverage of 3.6x, available liquidity of EUR 512 million, and the Fitch upgrade to BB- with a stable outlook; he also pointed to early redemption of EUR 159 million of notes and issuance of EUR 150 million of 5.625% senior notes due 2030.

The main analyst focus was the Italian rail catering contract and whether the dispute could create further H2 downside. Management said the issue arose when customer-side cost increases, especially wages, were extended into the contract, and that the EUR 25 million provision was intended to cover the expected loss through April 2027, with no further EBITDA hit expected in H2. The second question asked whether the lower organic growth guidance was mainly due to delayed French contract ramps; management answered that the main drags are lower volume growth from more cautious clients, while price revisions should remain similar and net development should improve as new openings ramp and retention stabilizes.