Elis: Q1 2026 Revenue of €1.18 Billion, Annual Targets Confirmed
On Monday, Elis Group reported a Q1 2026 revenue of €1,180.5 million, a 4.3% increase in reported data (3.1% organic). This acceleration is based on a significant improvement in commercial dynamics and the implementation of pricing adjustments to offset the inflation in labor costs. Despite the uncertain geopolitical context and a temporary impact from the Middle East on the hospitality sector in March, the group confirms all its annual financial targets.
Organic Growth Driven by Commercial Successes and Pricing Adjustments
The organic growth of 3.1% in the first quarter aligns with the quarterly sequence expected for the entirety of 2026. It benefits from a notable improvement in commercial dynamics, marked by an increase in new contract signings across all business sectors and geographies. Latin America recorded the strongest performance with an organic growth of 9.5%, driven by the deployment of significant contracts won in Mexico in 2025 and 2026 in the healthcare market. Southern Europe showed an organic growth of 5.2%, supported by dynamics in professional clothing, while Central Europe progressed by 2.5% despite contract losses in healthcare in Germany. Concurrently, the group has implemented pricing adjustments to offset the inflation of cost bases, mainly due to rising labor costs in Germany and Latin America. Acquisitions contributed 1.0% to the quarterly growth, solely related to the carryover effect of the six acquisitions made in 2025 (JP Muller in France, Larosé and Adrett in Germany, Bodensee in Switzerland, Bugaderia Neutral in Spain, and Acquaflash in Brazil).
Contained Geopolitical Risks but Temporary Volatility in Hospitality
The group is not present in the Middle East and currently reports no significant effect on its overall activity. However, the hospitality sector experienced a temporary drop in attendance in March during the onset of the conflict in the Gulf, notably in Paris. This decline quickly normalized, and the level of bookings for the upcoming season remains satisfactory according to clients. In the UK and Ireland, organic growth reached 1.6% despite a gloomy economic context impacting hospitality. The reported revenue decreased by 1.5%, under the effect of an unfavorable currency impact of 3.1% linked to the evolution of the British pound. These elements illustrate that the strength of Elis's model relies less on exposure to geopolitics and more on its ability to strengthen its commercial forces and adjust its pricing in the face of inflationary pressures.
2026 Guidance Maintained: Moderate Organic Growth, Improved Margins, Rising Free Cash Flow
Elis confirms all its financial targets announced on March 11, 2026. The annual organic revenue growth is expected to be slightly lower than in 2025 (3.8%), while adjusted EBITDA and adjusted EBIT margins should see a slight improvement. Free cash flow is expected to grow in the 'mid-single digit' range and diluted current net earnings per share in the 'high-single digit' range. Finally, the financial leverage ratio is expected to decrease by about 0.1x by December 31, 2026. This guidance reflects the group's confidence in the robustness of its circular economy model and its ability to navigate geopolitical crises while strengthening its organic growth profile.
