Atos - Half-year 2025 results on track. Full Year 2025 targets confirmed

Core Insights - Atos has confirmed its full-year 2025 targets and reported half-year 2025 financial results, showing initial benefits from its Genesis transformation plan despite a challenging environment [1][2][3] Financial Performance - Group revenue for H1 2025 was €4,020 million, a decrease of 17.4% compared to H1 2024 [3][5] - Operating margin reached €113 million, reflecting a 15% increase year-on-year, with an operating margin percentage of 2.8% [3][6] - Net income attributable to the Group was a loss of €696 million, an improvement from a loss of €1,941 million in H1 2024 [3][26] - Free cash flow improved to -€96 million from -€593 million in H1 2024 [3][27] Genesis Transformation Plan - Over 50% of the restructuring target has been incurred by the end of June 2025, with significant progress in cost base reset impacting profitability [4][24] - The operating margin improved by 80 basis points year-on-year, driven by cost-cutting initiatives and improved contract management [4][12] Segment Performance - Atos SBU revenue decreased by 17.9% to €3,603 million, while Eviden SBU revenue fell by 11.9% to €417 million [5][8] - The operating margin for Atos SBU improved by 18% year-on-year, while Eviden SBU reported a negative operating margin of -€33 million [6][17] Order Entry and Backlog - Order entry for H1 2025 reached €3.3 billion, with a book-to-bill ratio of 83%, up from 73% in H1 2024 [20][21] - The full backlog at the end of June 2025 was €12 billion, representing 1.5 years of revenue [21] Debt and Cash Management - Net debt as of June 30, 2025, was €1,681 million, a reduction from €4,218 million [5][28] - The financial leverage ratio stood at 4.0x [28] Strategic Developments - Atos signed a share purchase agreement with the French State for the sale of its Advanced Computing activities for an enterprise value of €410 million [31][32] - The transaction is expected to close in H1 2026, following the completion of the carveout [33]