Veolia (VIE) Q1 2026 earnings summary

Executive summary

• Achieved resilient Q1 2026 growth with revenue up 2.1% (excluding energy prices) to €11,427M and EBITDA up 5.1% to €1,766M, fully in line with annual guidance and the GreenUp plan.

• Transformation towards international, technology-driven, and innovative services continued, including major contract wins in the UK, expansion in Mumbai, and PFAS decontamination in Australia.

• Multi-local, diversified business model provided resilience, with limited impact from Middle East conflict and strong demand for environmental security solutions.

Financial highlights

• Q1 2026 revenue reached €11,427M, up 2.1% at constant scope and Forex, excluding energy prices.

• EBITDA was €1,766M, up 5.1% at constant scope and Forex, with margin expansion of 73bps to 15.5%.

• Current EBIT rose to €971M, up 7.2% at constant scope and Forex.

• Net financial debt stood at €20,797M as of March 31, 2026.

• Net free cash flow improved by €144M year-over-year, driven by strict CapEx and working capital management.

Outlook and guidance

• 2026 guidance confirmed: organic EBITDA growth of 5–6%, current net income growth of at least 8% at constant Forex (excluding Clean Earth), and leverage ratio at or below 3x (slightly above 3x post-Clean Earth acquisition).

• Clean Earth acquisition expected to close mid-2026, accretive to net income from 2027 before PPA.

• Dividend and EPS growth to align with net income; continued focus on free cash flow growth and dividend coverage.