Business
Elior : delivers resilient organic growth and profitability in the first half of fiscal 2025-2026, despite timing effects related to the start-up of new contracts
Elior : delivers resilient organic growth and profitability in the first half of fiscal 2025-2026, despite timing effects related to the start-up of new
About this update from Elior Group Sa
Paris La Défense, May 20, 2026 Elior delivers resilient organic growth and profitability in the first half of fiscal 2025-2026, despite timing effects related to the start-up of new contracts Organic growth of 1.3%, adjusted EBITA margin of 3% and net profit of €21 million Provision for losses at completion of €25 million relating to the contract with an Italian rail operator, in the context of a pricing dispute Excluding this exceptional item, a net result of €46 million showing a slight improvement compared to H1 2024-2025 and an adjusted EBITA margin of 3.9% versus 4.1% last year Positive free cash flow of €9 million in the first half, reflecting the seasonality of the business and the implementation of the investment policy, compared with an unusual operating working capital variation last year linked to the deployment of our new securitization program Full-year guidance adjusted to include the timing effects related to the start-up of new contracts and the impact of inflationary pressures: Organic growth between 1% and 2% (vs. 3% and 4% previously), Adjusted EBITA margin of approximately 3%, excluding the exceptional item recorded in the first half (vs. between 3.5% and 3.7%), The leverage ratio of around 3.5x (vs. around 3x) A solid commercial momentum across several markets illustrated by recent contract wins as of end-March, and the continued implementation of the investment policies The Group remains fully confident in its medium-term profitable growth, supported by strong fundamentals, including a stable core shareholder base, a high level of liquidity (> €500 million as of end-March 2026), and management continuity ensuring alignment between operational execution and strategy Today, Elior Group (Euronext Paris - ISIN: FR 0011950732), a world leader in catering and multiservices, is releasing its unaudited results for the first half of the 2025-2026 fiscal year (six months ended March 31, 2026). Commenting on these results, Daniel Derichebourg, Elior Group's Chair and CEO, said: "Elior Group's consolidated results for the first half of 2025-2026 reflect a resilient operating performance that was achieved despite inflationary pressures, the timing effects of new contracts, and an exceptional item arising from a pricing dispute concerning a major contract in Italy. The Group has solid fundamentals, as demonstrated by another period of net profit, coming in at €21 million. However, the timing lag for new contracts conversion into revenue has led us to adjust our guidance for full-year 2025-2026, without this calling into question the relevance of the strategy we've been implementing since April 2023. The fact that we've got our strategy right is clearly illustrated in the new contracts we've won in recent months, which will gradually translate into revenue growth. We remain fully confident in the sustainability of our profitable growth trajectory. In this challenging environment, I would like to express my sincere thanks to all our teams for their dedication and commitment to service." Elior Group delivered resilient consolidated results in the first half of 2025-2026, with organic revenue growth and an EBITA margin that highlights the Group's operating efficiency and solid fundamentals, despite timing effects related to the start-up of new contracts. Consolidated revenue amounted to €3,179 million, representing year-on-year organic growth of 1.3%, driven by a 2.6% organic revenue increase for the Multiservices business. Adjusted EBITA totaled €95 million, compared with €132 million in H1 2024-2025. The adjusted EBITA margin was 3% and 3,9% excluding the exceptional item in Italy, versus 4.1% last year. The year-on-year decrease in these items reflects a lower contribution from the Contract Catering business, which was partially offset by a strong performance from Multiservices. The leverage ratio was 3.6x at end-March 2026, versus 3.3x at end-September 2025, i.e., comfortably lower than the level required by the Group's covenants. First-half 2025-2026 results (in € millions) H1 2025-26 H1 2024-25 Revenue 3,179 3,213 Contract Catering 2,320 2,373 Multiservices 856 833 Corporate & Other 3 7 Reported revenue growth -1.1% 2.9% Organic revenue growth 1.3% 1.5% Adjusted EBITA 95 132 Contract Catering 87 124 Multiservices 21 17 Corporate & Other (13) (9) Adjusted EBITA margin 3% 4.1% Contract Catering 3.8% 5.2% Multiservices 2.5% 2.0% Attributable net profit 21 43 Net margin 0.7% 1.3% Adjusted attributable net profit 30 56 Adjusted attributable earnings per share (in €) 0.12 0.22 Net debt (1) 1,182 1,123 Net debt/Adjusted EBITDA (1) 3.6 3.3 (1) Based on the definition and covenants in the Senior Facilities Agreement, i.e., excluding unamortized issuance costs and the fair value of derivative instruments. 2 Revenue The Group's consolidated revenue amounted to €3,179 million in the first half of fiscal 2025-2026, compared with €3,213 million for the year-earlier period. This 1.1% year-on-year decrease reflects the combined impact of 1.3% organic growth, a 0.2% positive contribution from bolt-on acquisitions and a 2.6% negative currency effect. On a like-for-like basis, revenue rose by 2%, including positive volume and price effects of 0.6% and 1.4% respectively. Business development was stronger overall in first-half 2025-2026 than in the comparable prior-year period. However, recent new contract wins include a higher proportion of large-scale contracts which take longer to put in place, as illustrated by the collective catering and cleaning contract for 113 middle schools in the Yvelines region, and the contract for the headquarters of a major bank in the La Défense business district. This explains the delayed impact of business development on revenue growth and the negative net impact from contract churn in H1 2025-2026, which came to 0.7%, including the full-year effect of contract exits in fiscal 2024-2025. The retention rate was 91.4% at March 31, 2026, up from 91% at end-March 2025 and 90.6% at end- September 2025. In the Contract Catering business, organic revenue growth was 0.9%, mainly led by the United States, the United Kingdom and Spain and Portugal. In France, revenue decreased slightly year on year due to the temporary timing lag of the effects of business development, which will mainly be felt in the next fiscal year, and in Italy revenue was impacted by certain public sector contracts not being renewed in fiscal year 2024-2025. Organic revenue growth for the Multiservices business came to 2.6%, reflecting robust momentum for the Aeronautics and Energy/Urban divisions, as well as a positive contribution from Facilities Services, which helped limit the impact of a revenue decline for Temporary Staffing Services in France. Adjusted EBITA Against a backdrop of inflationary pressures, thanks to ongoing operating efficiency gains the Group managed to offset the impact of inflation on its profitability. However, the above-mentioned timing lag of the effects of business development automatically impacted EBITA. EBITA was also weighed down during the period by a dispute over pricing terms related to a major catering contract in Italy. Consolidated adjusted EBITA totaled €95 million in the first half of 2025-2026, down from €132 million for the same period of 2024-2025. Adjusted EBITA margin narrowed by 110 basis points to 3%. Excluding the exceptional item linked to the Italian contract however, adjusted EBITA margin came to 3.9% . In Contract Catering , adjusted EBITA totaled €87 million, compared with €124 million in the first half of 2024-2025. Adjusted EBITA margin narrowed by 140 basis points to 3.8%, or by 20 basis points to 5% excluding the exceptional item in Italy. In Multiservices , adjusted EBITA came to €21 million, versus €17 million a year earlier. Adjusted EBITA margin widened by 50 basis points to 2.5%. Recurring operating profit amounted to €83 million in first-half 2025-2026, compared with €119 million in the first half of 2024-2025. Net non-recurring income and expenses represented a net expense of €2 million, which was considerably lower than the €6 million net expense recorded for first-half 2024-2025. Net financial expense came to €50 million, slightly lower than the first-half 2024-2025 figure of €52 million. The net income tax expense amounted to €10 million, versus €18 million for the comparable prior-year period. In view of the factors described above, the Group ended first-half 2025-2026 with €21 million in net profit for the period attributable to owners of the parent , versus €43 million for the six months ended March 31, 2025. Cash flow and debt Free cash flow came to €9 million, down from €205 million a year earlier, mainly due to the impact of the change in operating working capital . This item represented a cash outflow of €52 million in first-half 2025-2026, reflecting (i) the seasonal nature of the contract catering business and (ii) invoicing delays as a result of a merger within the Group's cleaning activities. In the same period of 2024-2025, the change in operating working capital represented an unusually high cash inflow of €121 million, chiefly attributable to the new securitization program set up in September 2024. In line with the Group's previously announced investment strategy aimed at driving its future growth and transformation, net capital expenditure rose from €61 million to €83 million, representing 2.6% of consolidated revenue versus 1.9% in first-half 2024-2025. Net debt (as defined in the SFA) stood at €1,182 million at March 31, 2026, versus €1,125 million at September 30, 2025. The leverage ratio (net debt/adjusted EBITDA) was 3.6x at March 31, 2026, versus 3.3x at September 30, 2025. Outlook for full-year 2025-2026 For the second half of the fiscal year, when EBITA is traditionally lower, the Group expects to see a similar level of business as in the first half, in view of the fact that business development will translate into revenue growth later than originally forecast. In terms of profitability, the Group estimates a figure on a par with the second half of 2024-2025 excluding the impact of the pricing dispute in Italy and taking into account ongoing inflationary pressures. Lastly, the Group expects to see an unfavorable change in operating working capital for the year as a whole, in light of its anticipated revenue growth and taking into consideration the risk of temporary delays in the collection of trade receivables following the implementation of the new electronic invoicing regulations in France as of September. In view of these factors, and excluding the pricing dispute in Italy, Elior Group is now targeting the following for full-year 2025-2026: Organic revenue growth, focused on profitability, ranging between 1% and 2% (versus the previous guidance of between 3% and 4%). Adjusted EBITA margin of approximately 3% excluding the exceptional item recorded in the first half (versus the previous guidance of between 3.5% and 3.7%). A leverage ratio of around 3.5x at end-September 2026 (versus the previous guidance of around 3.0x), comfortably lower than the 4.5x required by the Group's covenants. Elior has solid fundamentals and remains fully confident in its prospects for medium-term profitable growth and for deleveraging , which are strategic priorities for the Group. This outlook is supported by the Group's robust business development momentum combined with the continuation of its investment strategy, including in central kitchens and bolt-on acquisitions. The effects of this business development and expansion are expected to be seen more as from fiscal 2026-2027. Despite the short-term uncertainties related to the current geopolitical situation, Elior is continuing to implement its growth and transformation strategy launched in 2023, drawing on its close proximity to its clients worldwide.