Atos reports full year 2024 results

Core Insights - Atos reported a FY 2024 revenue of €9,577 million, a decrease of -5.4% organically, primarily due to contract terminations and market softness in key regions [3][10][14] - The operating margin for FY 2024 was €199 million, representing 2.1% of revenue, down from 4.4% in FY 2023 [9][13] - Free cash flow was negative at €-2,233 million, reflecting the end of one-off working capital optimization actions and increased capital expenditures [3][39][59] Financial Performance - Net income group share was €248 million, significantly improved from a loss of €3,441 million in FY 2023, largely due to a €3,520 million financial gain from restructuring [4][38][55] - The operating margin included approximately €40 million in provisions for underperforming contracts [8][17] - The total headcount decreased by -17.9% to 78,112 employees by the end of December 2024 [33] Business Segments - Eviden revenue was €4,604 million, down -6.7% organically, while Tech Foundations revenue was €4,972 million, down -4.1% organically [10][11] - The operating margin for Eviden was €90 million (2.0% of revenue), and for Tech Foundations, it was €109 million (2.2% of revenue) [10][17] - Digital activities within Eviden saw a high single-digit decline, impacted by contract terminations and market conditions [12][83] Regional Performance - North America revenue decreased by -12.3% to €1,909 million, while UK & Ireland revenue fell by -14.9% to €1,500 million [14][18][20] - Southern Europe revenue was down -1.9% to €2,080 million, and Benelux and the Nordics saw a slight increase of +4.6% to €946 million [14][22][23] - The overall book-to-bill ratio for FY 2024 was 82%, down from 94% in the previous year [28][35] Commercial Activity - Q4 2024 order entry reached €2.7 billion, with a book-to-bill ratio of 117%, benefiting from renewed client confidence post-restructuring [29][30] - Major contract renewals included significant agreements in application management and cybersecurity services [30][31] - The full backlog at the end of December 2024 was €13.0 billion, representing 1.3 years of revenue [31] Financial Restructuring - The financial restructuring resulted in a €3,520 million income, including a €2,766 million gain from debt-to-equity swaps [8][38][52] - Net debt at the end of December 2024 was €1,238 million, significantly reduced from €2,230 million in the previous year [40][64] - The company has established new financial covenants requiring a minimum liquidity level of €650 million [43][44]