Euronext quarterly revenue rises about 10%, matches forecasts | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The reflection of a digital board at the Euronext stock exchange in the La Defense business district in Paris, France, March 10, 2025. REUTERS/Benoit Tessier [Purchase Licensing Rights, opens new tab]- Companies- Summary- CEO reiterates call for pan-European market consolidation- EBITDA rises 8.9% to 275 million euros, matc ...

Core Insights - Euronext achieved double-digit growth in 2025, with underlying revenue and income increasing by 12.1% to €1,823.2 million, driven by non-volume-related businesses and resilient trading performance [2][14][24] - The company plans to accelerate the execution of its strategic initiatives in 2026, including diversifying its commodities franchise and enhancing its European capital market infrastructure [8][10][11] Financial Performance - Full year 2025 underlying revenue and income rose to €1,823.2 million, a 12.1% increase from 2024, with non-volume-related revenue accounting for 59% of total revenue [3][16] - Adjusted EBITDA for 2025 was €1,143.1 million, up 13.6%, with an adjusted EBITDA margin of 62.7%, reflecting disciplined cost management [4][19] - Reported net income increased by 9.8% to €642.9 million, resulting in a reported EPS of €6.34 [24][25] Revenue Breakdown - Securities Services revenue grew to €330.7 million, a 6.9% increase, driven by strong growth in custody and settlement services [4][13] - Capital Markets and Data Solutions revenue reached €669.3 million, up 12.1%, supported by contributions from Admincontrol and Advanced Data Solutions [4][30] - FICC Markets revenue increased by 16.2% to €342.8 million, while Equity Markets revenue grew by 11.7% to €410.0 million, reflecting robust trading activity [4][36] Cost Management - Underlying operating expenses (excluding D&A) were €680.1 million, a 9.6% increase, aligning with revised guidance [6][17] - Euronext expects stable underlying expenses for 2026 at around €720 million, with additional costs from acquisitions and strategic growth investments [7] Strategic Initiatives - Euronext made significant progress in its "Innovate for Growth 2027" strategic plan, including the acquisition of Admincontrol and the establishment of an integrated ETF market in Europe [9][11] - The company plans to enhance its European CSD model and expand its retail offerings, aiming to improve liquidity and access across European markets [53][54] Dividend Proposal - A dividend of €321.5 million will be proposed at the 2026 Annual General Meeting, representing 50% of 2025 reported net income, marking a 9.8% increase from 2024 [5]

Company Developments - Bayer's stock fell by 7.3% in early trading after its Monsanto Unit proposed a $7.25 billion settlement for lawsuits alleging that its weed killer Roundup causes cancer [2] - Bayer anticipates an increase in provisions and litigation liabilities from €7.8 billion ($9.24 billion) to €11.8 billion, with approximately €5 billion in litigation-related payments expected in 2026 [3] Economic Indicators - The UK inflation rate decreased to 3% in January, down from 3.4% in December, indicating a potential shift in inflation trends compared to the US and eurozone [4] - Analysts predict that UK inflation could drop to 2% by the end of the year, which may lead to further interest rate cuts by the Bank of England [5] Market Reactions - European stocks opened higher, with the pan-European Stoxx 600 up by approximately 0.5%, while the UK's FTSE 100 and France's CAC 40 rose by 0.3%, and Germany's DAX increased by 0.4% [1] - The British Pound remained stable against the dollar at $1.3562, and British government bond yields held steady following the inflation data [8] Global Market Context - Asian stocks experienced gains in a holiday-thinned trade, with several markets closed for Lunar New Year [9] - U.S. stock futures were near flat, with traders awaiting the Federal Reserve minutes from the January meeting [9] - The upcoming personal consumption expenditures price index reading is expected to provide further insights into the economic state [10]

Core Viewpoint - The article emphasizes the importance of fundamental, income-oriented, long-term analysis in investment strategies across various sectors in developed markets globally [1]. Group 1 - Buy-side hedge professionals are encouraged to engage in discussions regarding investment ideas [1]. - The focus is on conducting thorough analysis to identify potential investment opportunities [1]. Group 2 - The article does not provide specific company or industry insights, focusing instead on the general approach to investment analysis [2][3].

Group 1 - The Italian state lender Cassa Depositi e Prestiti (CDP) is advocating for the replacement of Fabrizio Testa as the chief executive of the Milan bourse by pan-European exchange operator Euronext [1]

Core Insights - Euronext announced trading volumes for January 2026, highlighting its position as a leading European capital market infrastructure [1] Company Overview - Euronext operates across the entire capital markets value chain, including listing, trading, clearing, settlement, and custody services [2] - The company runs MTS, a prominent electronic fixed income trading market, and Nord Pool, the European power market [2] Market Position - As of December 2025, Euronext's regulated exchanges host over 1,700 listed issuers with a total market capitalization of €6.7 trillion, making it a significant player in global debt and fund listings [3] - Euronext accounts for 25% of European lit equity trading, offering a diverse range of products including equities, FX, ETFs, bonds, derivatives, commodities, and indices [3] Recent Developments - In November 2025, Euronext acquired a majority stake in the Athens Stock Exchange (ATHEX), enhancing its pan-European market infrastructure [4]

Core Viewpoint - Euronext has successfully completed a €250 million share repurchase program, repurchasing approximately 1.90% of its share capital at an average price of €127.03 per share [1][2]. Group 1: Share Repurchase Program Details - The share repurchase program was executed from November 18, 2025, to January 27, 2026, totaling 1,967,993 shares [1]. - The program was conducted in compliance with applicable regulations, including the Market Abuse Regulation and was authorized by the General Meeting of Shareholders on May 15, 2025 [2]. Group 2: Future Actions - During the 2026 Annual General Meeting scheduled for May 20, 2026, the Managing Board will seek authorization to confirm the cancellation of the repurchased shares [3]. Group 3: Company Overview - Euronext is a leading European capital market infrastructure, covering the entire capital markets value chain, including listing, trading, clearing, and settlement [5]. - As of September 2025, Euronext's regulated exchanges host over 1,700 listed issuers with a market capitalization of €6.5 trillion, handling 25% of European lit equity trading [6]. - In November 2025, Euronext acquired a majority stake in the Athens Stock Exchange, further expanding its market presence [7].

Group 1: Market Performance - France's equity index CAC 40 increased by 51.98 points or 0.64% to 8,118.66, supported by positive earnings updates and the Federal Reserve's decision to hold interest rates [1] - Schneider Electric rose more than 3%, while Legrand gained nearly 3%, and STMicroElectronics increased by 2.1% after forecasting first-quarter revenue above market expectations [2] - Shares of a spirits maker surged over 8% due to better-than-expected third-quarter sales but later lost most of the gains [3] Group 2: Company-Specific Developments - Sanofi reported a loss in its fourth quarter despite higher net sales, but projects continued profitable growth with sales expected to grow by a high single-digit percentage at CER in 2026 [4] - Sanofi proposed a dividend of 4.12 euros for 2025, a 5.1% increase from the previous year, and plans a share buyback program of 1 billion euros in 2026 [5] - Eurofins Scientific shares fell by 4.7%, while Dassault Systemes and Capgemini dropped by 2.2% and 2.1%, respectively [3][5] Group 3: Economic Indicators - The Eurozone Economic Sentiment Indicator (ESI) rose to 99.4 in January 2026, up 2.2 points from December 2025, marking the highest level since January 2023 [6] - Consumer confidence improved to -12.4, the highest since February 2025 [6] - Lending to Eurozone businesses increased by 3% year-on-year to a record €5.324 trillion in December 2025, indicating a recovery in credit demand [7]

Group 1 - Euronext's equity derivatives trading was halted due to a technical issue, affecting operations across the pan-European exchange [3][8] - The halt follows Oxurion NV's decision to suspend its digital asset investment program due to market volatility, although these events are unrelated [3] Group 2 - In France, Prime Minister Sébastien Lecornu is preparing to invoke Article 49.3 to pass the 2026 budget without parliamentary approval, indicating significant political tension [4][8] - This move represents a reversal of Lecornu's earlier commitment to avoid using this controversial power, highlighting ongoing struggles to secure a majority for fiscal legislation [4] Group 3 - Brazilian Finance Minister Fernando Haddad warned that the Banco Master case could be the largest banking fraud in Brazil's history, with issues predating the current Central Bank chief's tenure [5][8] - Haddad has been in daily contact with the Central Bank President regarding the situation, indicating the seriousness of the matter [5] Group 4 - IMF Managing Director Kristalina Georgieva emphasized the need for international cooperation and consensus to address global economic challenges [6][8]

Group 1: Market Reactions and Economic Indicators - Stock futures are muted as traders await a Supreme Court ruling on Trump's tariffs and December payrolls data, with S&P 500 futures up 0.1% and Nasdaq 100 contracts up 0.2% [1] - Mortgage stocks surged after President Trump announced a directive for the purchase of $200 billion in mortgage bonds, with LoanDepot (LDI) rising 16% and Rocket Companies (RKT) increasing by 5% [1][4] - The December jobs report and other economic indicators are scheduled for release, including October housing starts and University of Michigan sentiment [1][19] Group 2: Corporate News - Rio Tinto is in discussions to acquire Glencore, potentially creating the world's largest mining company with a combined market value exceeding $200 billion [2] - TSMC reported quarterly sales that surpassed estimates, raising expectations for sustained global AI spending in 2026 [2] - General Motors shares fell after announcing an additional $6 billion in charges related to cutbacks in electric vehicle and battery operations [2] Group 3: Stock Movements and Company Performance - Mag 7 stocks showed mixed performance in premarket trading, with Alphabet up 0.8% and Meta down 0.2% [3] - AXT Inc. saw a 14% decline after disappointing fourth-quarter revenue forecasts due to fewer export control permits from China [4] - Revolution Medicines gained 13% following reports of Merck's interest in acquiring the cancer drugmaker [4] Group 4: Economic Outlook and Market Sentiment - The S&P 500's early-year rally has slowed, with a shift away from AI stocks towards a broader range of tech players and sectors [5] - Traders are preparing for significant risk events, including the payrolls data and the Supreme Court ruling, which may impact global equities [6] - The market is anticipating a mixed reaction to the jobs data, with expectations for nonfarm payrolls to be around 70,000, in line with consensus [8][34]