revenue growth
3–5 pct
FY 2025
official guidance
ELIOR GROUP
Last · Paris€1.802+0.022 (+1.24%)live · yahoo · 4h ago
Market cap€452.3M251.0M sh
P/E · TTM7.2fwd 5.8 · eps 0.25
Beta—vs S&P 500
Div yield2.25%annual · TTM
52w range
€1.734€3.198
Volume534.4Ksession
| Revenue | €6.2B |
|---|---|
| Operating income | €206.0M |
| Net income | €86.0M |
| Free cash flow | €194.0M |
| Operating margin | 3.3% |
| Net margin | 1.4% |
| Return on equity | 10.3% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Operational recovery is strong, but leverage and limited FY25 margin visibility temper the risk/reward.
Elior delivered a credible turnaround:
FY24 revenue rose 15.9% to above €6bn, organic growth was 5.1%, adjusted EBITDA reached €333m, adjusted EBITA margin expanded 170 bps to 2.8%, and free cash flow was €215m. However, with leverage still high at 3.8x and FY25 guidance only for organic growth of 3–5% and adjusted EBITA margin above 3%, the stock is a hold rather than a clean buy: the €57m pricing carryover offers upside, but labor-cost and retention risks remain insufficiently quantified.
Themes
- Turnaround
- Deleverage
- Pricing Pass Through
- Margin Expansion
- Working Capital
- Contract Retention
Near term
FY25 pricing carryover of €57m should support earnings, although management expects a lower positive net inflation balance than in FY24.
Current trading is reportedly in line with the 3–5% organic-growth outlook, but volume growth is expected to stabilize as post-COVID attendance benefits normalize.
Further deleveraging is central: FY24 net debt fell to €1.269bn and management targets leverage below 3.5x by September 2025.
Retention declined to 92.7% excluding voluntary exits from 93.6%; facility-services retention is structurally lower and could weigh on growth quality.
Longer term
Management targets €56m of cumulative annualized synergies by FY26 versus €36m achieved at September 2024, leaving meaningful execution potential.
The strategic shift toward selective, margin-accretive tenders should improve contract economics, but it may constrain top-line growth and does not yet demonstrate a durable competitive moat.
Management targets leverage below 3x by September 2026; achieving this depends on sustained EBITDA improvement and conversion of working-capital gains into recurring cash flow.
The combined catering and multiservices offering could generate cross-selling benefits in France, Spain and Portugal, but the call provided limited quantified evidence of material sales synergies.
Red flags
Despite the analyst challenge that €57m of carryover pricing could imply substantially more than 20 bps of margin expansion, management retained only an adjusted EBITA margin outlook above 3% and did not quantify the offset from labor costs or social charges.
The FY24 €107m working-capital benefit, mainly from receivables, was a major contributor to €215m of free cash flow; its repeatability is uncertain.
Net financial charges rose to €105m, and leverage remains 3.8x, leaving the balance sheet sensitive to interest rates and any operational setback.
Retention weakened, particularly in multiservices and some US and Spanish activities, while management prioritized profitability over revenue growth; this raises the risk that organic growth will undershoot the 3–5% range.
Net income remained negative at €41m, with restructuring and reorganization charges still totaling €23m in FY24.
Forward outlook
operating margin
—
FY 2025
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest ANNUAL · 2026-01-08
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.56
Upcoming earnings
4:30 PM UTC+1
Period
Sep 2026
Est. EPS
—
Est. revenue
0
Earnings transcripts
Documents
FormReporting forFiledFlags
DISCLOSURETotal number of voting rights and capital / Information on the total number of voting rights and the number of shares making up the capital
2026-10-012026-10-010