Veolia: EBITDA Up by 5.1% in Q1, Revenue Grows by 1%
Veolia has released its first quarter 2026 results, showcasing an expansion in profitability with EBITDA increasing by 5.1% to 1,766 million euros and a margin improvement of 73 basis points. However, revenue growth remains modest at 1.0% at constant exchange rates, affected by lower energy prices and a slowdown in Project activities in the Middle East. The group confirms its 2026 guidance and GreenUp trajectory.
Widening Margin Despite Restrained Organic Growth
The group's revenue stood at 11,427 million euros, up by 1.0% on a like-for-like and constant currency basis compared to Q1 2025. Excluding the impact of energy prices, growth was 2.1%. EBITDA reached 1,766 million euros, increasing by 5.1% and falling within the target range of +5% to +6% set for the year. This divergence reveals a profitability lever: operational efficiency gains and tariff revaluations contribute to the expansion of the EBITDA margin, which gained 73 basis points to 15.5%. The group achieved 96 million euros in efficiency gains in the first quarter, in line with its annual target of over 350 million euros. Operating EBIT also recorded a 7.2% increase to 971 million euros, boosted by EBITDA growth and partially offsetting the rise in depreciation.
Water Grows, Waste Stable, Energy Driven by Climate
By business, performances vary. The Water sector grew by 2.0%, supported by tariff revaluations of 1.8%, while Water Technologies declined by 2.2% due to a slowdown in Projects in the Middle East, although excluding projects, growth reached 4.3%. The Waste sector remained nearly stable at -0.1%, with Solid Waste declining by 0.8% (due to lower prices of recyclable materials, adverse weather) offset by a 1.7% increase in Hazardous Waste at constant scope, or 6.0% including targeted acquisitions (tuck-ins). Energy accelerated, growing by 1.2% at constant scope and currency and 4.1% excluding the impact of energy prices. This momentum is driven by a favorable climate effect in Central and Eastern Europe (colder winter early in the year) and an increase in volumes, offsetting a 2.9% drop in energy prices. Internationally, Americas, Asia Pacific, Africa Middle East recorded organic growth of 3.1%, while Europe advanced by 0.8% (3.0% excluding energy effects).
Guidance Confirmed, Ongoing Acquisitions, and Strategic Pivots
Veolia fully confirms its 2026 objectives: solid organic revenue growth excluding energy prices, EBITDA progression of +5% to +6%, and at least 8% growth in recurring net income attributable to the group at constant exchange rates and excluding Clean Earth. The group continues its transformation towards international markets and innovative technologies. The acquisition of Clean Earth in the USA (hazardous waste treatment) is expected to be finalized by the end of June 2026, followed by a divestment program of over 2 billion euros over two years. Veolia also announces an ambitious plan for data centers and microelectronics, targeting over one billion euros in annual revenues by 2030. The group aims to double the share of efficiency gains from digital and artificial intelligence, moving from 23% in 2025 to 50% by 2030. Net financial debt stands at 20,797 million euros, with a net debt/EBITDA ratio maintained at or below 3x excluding Clean Earth.
