Elis: Record Revenue of 4.8 Billion Euros but Latin America Raises Concerns
The French circular services giant announces exceptional 2025 results with record revenue of 4,796.8 million euros and a historically low debt ratio of 1.75x. However, this strong performance masks increasing vulnerabilities in Latin America, where social overhead costs are eroding margins, while the group accelerates its shareholder redistribution.
Record Figures Across the Board
In 2025, Elis delivered record figures across all metrics. Revenue reached 4,796.8 million euros, up by 4.9% (3.8% organically). Adjusted EBITDA increased by 5.6% to 1,700.1 million euros, with a margin improvement of 20 basis points to 35.4%. Adjusted EBIT stood at 766.6 million euros (+4.6%), while net income was 366.6 million euros, up by 8.6%. Even more notably: current net income per share increased by 5.6% to 2.00 euros, and free cash flow reached 358.6 million euros, up by 3.5%. In terms of balance sheet, net financial debt improved its ratio to 1.75x, its lowest historical level. All these indicators confirm what the group itself describes as 'record levels'.
Geographical Growth Masks Contrasting Realities
While growth is widespread geographically, it does not mask contrasting realities. In France, organic growth reached 3.3% but was accompanied by marked customer caution, reflected in a decrease in contract signings. In Central and Southern Europe, results shine with margin improvements of 50 and 100 basis points respectively. However, Latin America represents a dark spot: although organic growth there reached 8.2%, the adjusted EBITDA margin plummeted by 130 basis points to 33.6%, victim to social government decisions (minimum wage increase, reduced working hours, overtime surcharges). The group notes that tariff adjustments gradually implemented have only partially offset these additional costs. This erosion reveals a major challenge: the ability to pass cost increases onto customers is never guaranteed, especially in times of economic caution.
Shareholder Redistribution Accelerates
In 2025, the group initiated a buyback program of 150 million euros; it announces a new program for 2026 that could reach up to 500 million euros. Since January 2026, 113.9 million euros have already been spent to repurchase 4.5 million shares at 25.42 euros each. This shift reflects the gradual improvement of the balance sheet over recent years. The dividend also increases: 0.48 euros per share proposed for 2025, a +7% increase from 2024. This capital allocation policy, made possible by the solidity of the debt ratio, aims to 'significantly improve the return to shareholders'. It remains to be seen if this confidence in the future will hold up against the growing challenges of operational execution in key regions.
