Alten Ends 2025 with a 1.1% Decline in Activity and an Operating Margin Above Expectations
The engineering consulting group Alten recorded a 1.1% decrease in activity for the year 2025, particularly affected by the automotive sector. Despite this context, the operating margin on activities reached 8.5% of revenue, exceeding initial forecasts.
Annual Performance Details
As of December 31, 2025, Alten Group's activity fell by 1.1% in raw data. At constant exchange rates and comparable scope, the decline deepens to 4.5%. France shows a growth of 4.3%, while international activity declines by 3.7% in raw data (a drop of 4.9% at constant scope). However, the fourth quarter proved better than expected. The civil aviation and banking-finance sectors returned to growth. The annual decline is mainly attributable to a 16% drop in the automotive sector, as well as declines in telecommunications, other industries, electronics, and the public sector. Conversely, naval defense-security and energy sectors recorded significant progress. Southern Europe maintains satisfactory growth, while Eastern Europe and Asia-Pacific remain stable. Other regions continue their decline, with a gradual recovery observed, except for the United Kingdom, Benelux, and the Nordic countries.
Operational Financial Performance
The group generated an operating result on activities of 346.5 million euros, representing 8.5% of revenue. This level surpasses the initial guidance of 8.1%, thanks to a reduction in general and structural expenses, good utilization rates, and efficient project management. These strengths have offset the effects of an unfavorable calendar and the difficult economic conditions encountered in Germany and the Nordic countries. The operating result amounts to 199.6 million euros. It includes 21.0 million euros of share-based payments, 12.2 million euros of amortization of intangible assets from the allocation of the purchase price of Worldgrid, 67.4 million euros of goodwill impairment, and 46.3 million euros of non-recurring costs. These include 21.5 million euros related to the fine from the French Competition Authority (currently contested on appeal), 3.7 million euros in acquisition costs, 1.4 million euros in earn-out adjustments, 2.0 million euros related to tax and social audits, and 17.6 million euros in international restructuring costs.
Net Profit and Cash Flow
The net profit attributable to the group reached 106.9 million euros, representing 2.6% of revenue, after a financial charge of 4.0 million euros and corporate tax of 88.5 million euros. The cash flow, excluding IFRS 16 standards, amounts to 317.5 million euros (7.7% of revenue). The working capital requirement decreased by 33.5 million euros, mainly due to an improvement in customer collection times and the organic decline in activity. Taxes paid totaled 97.1 million euros and investments remained limited to 11.8 million euros (0.3% of revenue). The free cash flow reached 239.9 million euros, representing 5.9% of revenue, down 28% compared to 2024. After accounting for net financial investments, mainly acquisitions for 62.9 million euros, dividend payments of 52.2 million euros, and other financing flows of 10.1 million euros, the group's net cash position at the end of the year amounted to 390.2 million euros. The net debt represents a gearing of less than 17.5%. Alten self-financed its external growth and dividends while maintaining significant investment capacity. The group made four acquisitions in 2025: a life sciences company in the USA and India (7.5 million euros in revenue, 120 consultants), an embedded software engineering firm for the automotive sector in India (5.2 million euros in revenue, 270 consultants), a digital transformation entity in Spain and South America (19.0 million euros in revenue, 300 consultants), and a life sciences company operating in France and Belgium (20.5 million euros in revenue, 190 consultants).
