Atos (ATO) Q2 2025 earnings summary

Executive summary

• H1 2025 performance met expectations, with revenue stabilization and progress on the Genesis restructuring plan, now halfway complete and expected to reach two-thirds by year-end.

• Genesis transformation plan underway, delivering initial benefits and cost base reset, with significant cost reductions and operational improvements.

• New leadership team in place, governance strengthened, and reverse stock split completed.

• SPA signed with French State for Advanced Computing, with closing expected in H1/Q2 2026.

• CEO invested €9 million of personal funds in company shares.

Financial highlights

• H1 2025 revenue: €4,020 million, down 17.4% year-over-year due to contract losses and market softness.

• Operating margin reached €113 million (2.8% of revenue), up 15% organically year-over-year.

• Free cash flow improved to -€96 million from -€593 million year-over-year.

• Net loss attributable to owners was -€696 million, improved from -€1,941 million in H1 2024.

• Net debt (excluding IFRS 9) at €1,681 million as of June 30, 2025, up from €1,238 million at end-2024; liquidity at €1,804 million.

Outlook and guidance

• 2025 guidance reaffirmed: ~€8.5 billion revenue, ~4% operating margin, net cash change before debt repayment of ~-€350 million.

• 2026 expected to see positive organic growth and cash change before debt repayment and M&A.

• 2028 targets: €8.5–10 billion revenue (5–7% CAGR), 10% operating margin, and leverage ratio below 1.5x.

• Eviden expected to return to positive operating margin on a full-year basis despite H1 seasonality.

• Q3 2025 revenue expected to remain stable, with growth resuming in Q4.