Veolia: 5% growth in the third quarter, 2026 targets confirmed
Veolia published its nine-month accounts on 2026-11-05, which show an acceleration in activity at the end of the period. At constant scope and exchange rates and excluding energy prices, revenue grew by 5.0% in the third quarter, compared with 2.6% over the nine months as a whole.
This growth was accompanied by a 0.5-point increase in the EBITDA margin, to 16.2%, compared with 15.7% a year earlier. The group confirmed all of its objectives for 2026, while the acquisition of Clean Earth in the United States increased its net financial debt.
The publication comes after a quarter of share price decline: on 19 October 2026, the stock showed a fall of 15.65% over three months. On the eve of the results, the share had gained 1.76%.
International and Europe drive the third-quarter acceleration
The third-quarter rebound is visible in the group's two main regions. The Americas, Asia-Pacific, Africa Middle East division saw its sales grow by 6.2% over the quarter, compared with 4.7% over nine months, to €9,067 million.
Europe, the largest segment with €14,253 million, accelerated to 6.9% in the third quarter, compared with 2.8% over the cumulative period. Northern Europe contributed with an increase of 10.2% over the quarter, while activity in the United Kingdom rose by 8.2%.
Latin America posted the highest geographic growth, with 10.9% over nine months and 12.7% in the third quarter, driven by price indexation and contract gains, notably in Colombia and Chile.
Part of the reported growth is due to scope: the acquisitions of Clean Earth and Enviropacific added €383 million to revenue, which reached €33,310 million compared with €32,323 million.
Foreign exchange and raw material price effects reduced it by €87 million and €138 million respectively, with the price and volume effect of €746 million remaining the main contributor.
France and Water Technologies weigh on growth, with a recovery at the end of the period
Two segments weighed on cumulative growth. The France and Europe Hazardous Waste division, at €6,571 million, declined by 0.2% over nine months, before rising by 0.9% in the third quarter.
In France, waste fell by 2.6%, notably due to a policy of commercial selectivity, while water rose by 0.9%. Hazardous waste in Europe gained 6.2% in the third quarter, after a first half affected by bad weather and incinerator shutdowns.
Water Technologies, at €3,403 million, shows a decline of 2.5% over nine months, linked to the drop in the Projects business, particularly in the Middle East. Activity recovered in the third quarter, with sales up 2.3%, and up 6.4% excluding Projects, while the order book increased.
The main driver remains municipal water, whose sales rose by 4.5% to €9,762 million, thanks to price increases and higher volumes during heat waves. Solid waste also accelerated, to 4.3% in the third quarter compared with 1.1% over nine months.
EBITDA margin up, debt increased by the Clean Earth buyout
EBITDA reached €5,404 million, representing organic growth of 5.1%, within the 5% to 6% annual range targeted by the group. The margin increase is due to the growth and performance effect of €303 million, which more than offset the unfavourable impact of €74 million linked to energy and recycled materials prices.
Current operating income (before effects of the purchase price allocation for Suez and Clean Earth) rose by 6.7% at constant scope and exchange rates, to €2,950 million. It benefited from the increase in EBITDA, partly absorbed by higher depreciation and amortisation.
Net financial debt stood at €25,423 million, compared with €19,657 million at 31 December 2025. This increase mainly reflects the buyout of Clean Earth for €2,804 million, the payment of €1,099 million in dividends and the repayment of €500 million of hybrid debt, while net free cash flow came to -€200 million.
The change in working capital requirement reached -€1,488 million, compared with -€1,272 million a year earlier, mainly due to longer collection periods in the Middle East. The group confirms a leverage ratio equal to or slightly above 3 times at year-end.
The disposal plan of over €2 billion, planned by mid-2028, already includes €570 million of signed transactions, at a multiple of 10.4 times 2025 EBITDA. The group also maintains its target of at least 8% growth in current net income attributable to the group in 2026, with Clean Earth expected to deliver its first synergies from 2027.
