France · Delayed Price · Currency is EUR Sopra Steria Group Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenue grew 3.4% year-over-year to €1.463 billion, with all segments showing growth and strong rebounds in aeronautics and defense. Guidance for 2026 and 2028 remains unchanged, with continued focus on technology transformation and resilience in strategic sectors.
Fiscal Year 2025
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2025 saw a return to growth in Q4, strong net profit growth, and robust free cash flow. Strategic wins in AI, defense, and healthcare, plus a focus on next-gen tech and operational excellence, set the stage for 2026, with organic growth targeted at 1–2% despite SFT headwinds.
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Q3 2025 revenue declined 2.9% organically, with stabilization in France and a defense program delay in the U.K. Q4 is expected to return to low single-digit growth, driven by recoveries in France and the U.K., while 2025 guidance is confirmed at the lower end of the range.
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Revenue declined 3.8% year-over-year in H1 2025, but net profit rose 15.3% and EPS increased 19.2%. Sequential improvement, strong contract wins, and a focus on defense and AI support confidence in meeting full-year targets.
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Q1 2025 revenue declined 4.7% year-over-year to EUR 1,415 million, slightly outperforming guidance, with stabilization in aeronautics and strong growth in Spain and Italy. The outlook remains cautious amid political and economic uncertainty, but annual targets are reaffirmed.
Fiscal Year 2024
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2024 delivered record operating margin and cash flow, with net profit up 68% despite a slight revenue contraction. 2025 guidance anticipates flat to slightly negative organic growth, stable margins, and continued strong cash generation, amid ongoing market uncertainty.
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The group targets over €7 billion revenue by 2028, with 60% from digital and a 10–11% operating margin, driven by transformation levers, M&A, and innovation in AI and cloud. Sustainability goals include significant GHG reductions and expanded social responsibility.
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Q3 2024 revenues were resilient at EUR 1,356.9 million with stable organic growth, despite a weak IT market. Annual targets for organic growth and operating margin are confirmed, and the Sopra Banking Software disposal has strengthened the balance sheet.
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Revenue grew 3.8% year-over-year with improved operating margins and strong net profit growth, despite a subdued market and delayed client decisions. The disposal of banking software activities and strategic investments in AI and integration of recent acquisitions are expected to further enhance performance and reduce debt in H2.
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External factors in June led to a downward revision of 2024 revenue growth to stable, with margin guidance confirmed at at least 9.7%. H1 2024 saw modest organic growth and improved margins, while sector and regional performance varied, with France and aerospace facing headwinds.