Alten: return to organic growth in first half 2026, margin and free cash-flow up
After several quarters of slowdown, Alten returned to organic growth in the first half of 2026 while improving all its profitability metrics.
The engineering and technology consulting specialist is posting a marked increase in its margin and free cash-flow, two developments that accompany a raising of its annual guidance.
Revenue up 1.2%, France providing support
Over the first six months of 2026, the group's revenue stands at 2,109.2 million euros, up 1.2% compared to 2,084.1 million euros in June 2025. France grew by 4.4% (749.6 million euros) while international operations declined by 0.5% (1,359.5 million euros).
At constant perimeter and exchange rates, growth came in at 1.6%, with 3.3% in France and 0.8% outside France. Alten indicates that it returned to organic growth as of the second quarter of 2026, with most geographies returning to organic growth, including Germany. Only the Benelux and the Nordics remain in decline of more than 5%.
By sector, activity accelerated in Aerospace, Defense/Security/Naval, Railways and, to a lesser extent, Energy, while the decline slowed in other sectors.
Operating margin brought to 8.9% of revenue
Operating activity result reached 187.3 million euros, up 23.2% year-on-year. The operating activity margin rose from 7.3% of revenue in June 2025 to 8.9% in June 2026, with growth in both France and internationally.
The group attributes this development to margin improvement in several geographies that faced difficulties last year, productivity gains on projects and the reduction in general expenses undertaken over several half-years. The operating result stands at 158.3 million euros (7.5% of revenue), up 26.9%, after taking into account in particular 12.5 million euros in non-recurring costs and 2.6 million euros in gains on disposal.
Group net income comes in at 113.8 million euros, or 5.4% of revenue, up 37.8% compared to 82.6 million euros in June 2025. Free cash-flow amounts to 104.3 million euros (4.9% of revenue), up 33%, with capex remaining limited to 8.1 million euros (0.4% of revenue).
Margin target raised to approximately 9.2% for 2026
Alten has again raised its outlook for fiscal year 2026, with unchanged context. Organic growth, at constant data, is now expected between 1.7% and 1.9%, and the operating activity margin should reach approximately 9.2%, a level higher than that of 2025.
The group highlights the improvement in business noted since the last quarter of 2025, particularly in the Aerospace and Defense sectors, while emphasizing that the macroeconomic and geopolitical environment remains uncertain. On the financial side, net cash reached 313 million euros at the end of June 2026, for a gearing of -14.0%.
The first half was also marked by two acquisitions (an IT services company in France generating 68 million euros in revenue and an automotive company in Germany at 22 million euros in revenue) and a disposal of a life sciences activity internationally (11.5 million euros in revenue). The next publication, covering activity for the third quarter of 2026, is scheduled for October 27, 2026 after market close.
