Company Announcements

• Revenue of €2,843.7 million, equating to a total contraction of 3.6% and an organic contraction of 3.8%
• Improvement in Q2, with negative organic growth limited to 2.7% (-4.9% in Q1)
• Operating margin on business activity of 9.2% (9.7% in H1 2024)
• Net profit attributable to the Group up 15.3% to €142.0 million
• Significant seasonal fluctuation in free cash flow in H1 (-€145.9 million)
• Financial targets confirmed for 2025 (organic growth, operating margin, free cash flow)

PARIS--(BUSINESS WIRE)--Jul. 25, 2025-- Regulatory News:

At its meeting on 24 July 2025, the Board of Directors of Sopra Steria (Euronext Paris: SOP), chaired by Pierre Pasquier, approved the financial statements for the first half of 2025. The Statutory Auditors have conducted a limited review of the financial statements.

Cyril Malargé, Chief Executive Officer of Sopra Steria Group, commented:

“Against what we were expecting to be a difficult backdrop during the first half of the year, our profile enabled us to hold up well. We benefited from the following factors: most of our locations are in Europe, we are not directly exposed to the effects of the trade war, we have a strong presence in the defence and public-sector markets, and our business strategy is focused on local clients.

Although the market is not yet showing significant signs of an upturn, our business is on an improving trend as forecast after reaching a low point during Q1 of this year. The pace of negative growth slowed markedly during Q2. The wait-and-see attitude observed at the start of the year in the public sector – in France in particular – is gradually easing. In addition, we recorded a stronger sales performance in June in a number of European countries. This gradual improvement is expected to continue during the second half of the year. Our aim is to return to slight organic revenue growth during Q4 of this year.

We are well positioned to benefit from the opportunities offered by our customers’ investments in the defence, security and space industries. We are also a legitimate partner in addressing Europe’s emerging sovereignty and cybersecurity priorities. Our strategy aims to position us as a trusted, credible European alternative, harnessing technology, generative AI and agentic AI to help our European clients deliver on their transformation objectives.

To this end, we are continuing to focus on transforming our offering and our industrial capacity, developing our operating model and moving our expertise higher up the value chain.”

Detailed breakdown of operating performance in H1 2025

Revenue for the Group totalled €2,843.7 million, down 3.6% relative to H1 2024. After adjusting to exclude the impact of currency fluctuations (+€4.1 million) and a change in scope of +€3.3 million relating to the consolidation of Aurexia, revenue contracted by 3.8% on an organic basis. As forecast, Q2 saw an improvement, with negative growth of 2.7%, compared with negative growth of 4.9% in Q1 2025.

The Group’s operating profit on business activity held up well in this context. It came to €261.4 million, equating to a margin of 9.2%, down 0.5 points from H1 2024.

InFrance(42% of the Group total), revenue fell by 3.7% on an organic basis, totalling €1,207.9 million. Q2 saw an improvement (-2.4%) compared to Q1 (-4.9%), due in particular to a progressive return towards normal conditions in the public sector and in defence following a very slow start to the year. The situation also improved in energy, telecommunications and transport. Most verticals did however remain in negative growth during Q2. Operating margin on business activity stood at 9.2% for the half-year period (9.5% in H1 2024), returning to a level above that seen in H2 2024 (8.5%).

In the United Kingdom(16% of the Group total), revenue was €456.2 million, representing negative organic growth of 7.7%. As forecast, negative growth slowed significantly during Q2 (‑4.7%) relative to Q1 (-10.8%). The NS&I programme got off to a good start on 1 April. The NHS SBS platform saw a significant increase in business activity. The SSCL platform benefited from less unfavourable base effects and from a three-year extension secured for six of its major contracts, pushing the contract renewal dates back to 2027 and 2028. A return to organic revenue growth is forecast for the end of H2. Operating margin on business activity stood at 9.5% (11.6% in H1 2024).

The Europereporting unit (36% of the Group total) generated revenue of €1,015.2 million. At constant scope and exchange rates, revenue contracted by 3.1% over the half-year period, with Q2 (-3.0%) showing slightly less negative growth than Q1. Revenue growth was positive in Spain, Italy and Scandinavia. The other geographic areas saw their revenue decrease. Most countries in the reporting unit saw a contraction in their profitability. Operating margin on business activity for the reporting unit averaged 8.1% (9.3% in H1 2024).

The Solutions reporting unit (6% of the Group total) posted revenue of €164.4 million, representing organic growth of 2.6%. The Human Resources Solutions business (which accounted for 64% of the reporting unit’s revenue) grew by 2.7%. Operating margin on business activity for the reporting unit increased sharply to 15.2% (7.6% in H1 2024), with all its businesses contributing to this improvement (Human Resources, Property Management and Specialised Lending Solutions).

Comments on the components of net profit for H1 2025

Profit from recurring operations came to €234.0 million, down 6.9% relative to H1 2024. It included a €15.9 million share-based payment expense (versus €13.2 million in H1 2024) and an €11.6 million amortisation expense on allocated intangible assets (versus €20.9 million in H1 2024).

Operating profit was €215.3 million, down 6.3%, after a net expense of €18.6 million for other operating income and expenses (versus a net expense of €21.5 million in H1 2024).

The net interest expense was €18.1 million (versus €18.2 million in H1 2024).

The tax expense was €46.7 million, versus €33.3 million in H1 2024 (which had included non‑recurring tax income in the United Kingdom). The tax rate for the first half of the year was 23.7%.

Net profit/(loss) from associates came in at a €1.9 million loss (compared with a €1.4 million loss in H1 2024).

Consolidated net profit came to €148.6 million, up 13.6% relative to H1 2024 (which had included a net loss of €46.1 million from discontinued operations).

After deducting €6.6 million in non‑controlling interests, net profit attributable to the Group grew by 15.3% to €142.0 million. The net profit margin was 5.0% (versus 4.2% in H1 2024).

Basic earnings per share came to €7.29, up 19.2% relative to H1 2024.

Financial position at 30 June 2025

Free cash flow for the first half of 2025 showed a strong seasonal effect (-€145.9 million). This seasonal fluctuation was due in part to the fact that, at 30 June 2025, certain tax credits had not been received, and, above all, to an increase in the trade receivables collection period in the more uncertain economic climate. The tax credit receivables were partly recorded in July 2025 and the longer trade receivables collection period should shorten during the second half of the year.

Net financial debt totalled €696.8 million at 30 June 2025. This included €90.2 million in dividend payments, €40.7 million for the completion of the €150 million share buyback programme in January 2025, and the Aurexia acquisition. At end-June, it equated to 1.17x pro forma 12‑month rolling EBITDA before the impact of IFRS 16, compared with 1.63x at 30 June 2024 (with the financial covenant stipulating a maximum of 3x).

Change in scope

On 2 May 2025, Sopra Steria announced that it had completed its acquisition of Aurexia, a management consulting firm specialising in financial services. This transaction is part of the strategy to develop the consulting business. It bolsters Sopra Steria Next’s management consulting activities in financial services by expanding its range of business expertise as well as strengthening its positioning among France’s leading financial institutions.

With the addition of 140 consultants, Aurexia enables Sopra Steria Next to position itself as one of France’s leading management consultancies in the financial services sector, with over 400 consultants now dedicated to the industry in this country.

Aurexia has been consolidated since 1 May 2025.

Share buyback programme

The €150 million share buyback completed on 28 January 2025 will result in the retirement of 858,163 shares (equating to 4.2% of the share capital) during the second half of 2025.

Workforce

At end-June 2025, the Group’s net headcount stood at 50,304¹ people, compared with 51,413² people at 30 June 2024.

At the same date, 7,852 staff were employed at international service centres.

The workforce attrition rate³ was 16.1% at 30 June 2025, compared with 15.1% in the previous year.

Financial targets for 2025

The full-year financial targets for 2025 are all confirmed:

• Organic revenue growth of between -2.5% and +0.5%
• Operating margin on business activity of between 9.3% and 9.8%
• Free cash flow of between 5% and 7% of revenue

Meeting to report H1 2025 results

The results for the first half of 2025 will be presented to financial analysts and investors in a French/English webcast on Friday, 25 July 2025 at 8:30 a.m. (Paris time).

• Register for the French-language webcast here
• Register for the English-language webcast here

Or by phone:

• French-language phone number: +33 (0)1 70 37 71 66
• English-language phone number: +44 (0)33 0551 0200

Practical information about this conference call can be found in the ‘Investors’ section of the Group’s website: Investors | Sopra Steria

Upcoming financial releases

Wednesday, 29 October 2025 (before market open): Publication of Q3 2025 revenue

Glossary

• Restated revenue : Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year.
• Organic revenue growth : Increase in revenue between the period under review and restated revenue for the same period in the prior financial year.
• EBITDA : This measure, as defined in the Universal Registration Document, is equal to consolidated operating profit on business activity after adding back depreciation, amortisation and provisions included in operating profit on business activity.
• Free cash flow : Free cash flow is defined as net cash from operations; less investments (net of disposals) in property, plant and equipment, and intangible assets; less lease payments; less net interest paid; and less additional contributions to address any deficits in defined-benefit pension plans.
• Operating profit on business activity : This measure, as defined in the Universal Registration Document, is equal to profit from recurring operations adjusted to exclude the share-based payment expense for stock options and free shares and charges to amortisation of allocated intangible assets.
• Profit from recurring operations : This measure is equal to operating profit before other operating income and expenses, which includes any particularly significant items of operating income and expense that are unusual, abnormal, infrequent or not foreseeable, presented separately in order to give a clearer picture of performance based on ordinary activities.
• Basic recurring earnings per share : This measure is equal to basic earnings per share before other operating income and expenses net of tax.
• Return on capital employed (RoCE) : (Profit from recurring operations before tax + Profit from equity-accounted companies) / (Equity + Net financial debt)
• Downtime : Number of days between two contracts (excluding training, sick leave, other leave and pre-sales) divided by the total number of business days.

Disclaimer
This document contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the second half of the year, with varying impacts on end-of-year performance. Actual outcomes and results may differ from those described in this document due to operational risks and uncertainties. More detailed information on the potential risks that may affect the Group’s financial results can be found in the 2024 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on 14 March 2025 (see pages 43 to 51 in particular). Sopra Steria does not undertake any obligation to update the forward-looking information contained in this document beyond what is required by current laws and regulations. The distribution of this document in certain countries may be subject to the laws and regulations in force. Persons physically present in countries where this document is released, published or distributed should enquire as to any applicable restrictions and should comply with those restrictions.

About Sopra Steria
Sopra Steria, a major tech player in Europe with 51,000 employees in nearly 30 countries, is recognised for its consulting, digital services and solutions. It helps its clients drive their digital transformation and obtain tangible and sustainable benefits. The Group provides end-to-end solutions to make large companies and organisations more competitive by combining in-depth knowledge of a wide range of business sectors and technologies with a collaborative approach. Sopra Steria places people at the heart of everything it does and is committed to putting digital to work for its clients in order to build a positive future for all. In 2024, the Group generated revenue of €5.8 billion.

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Sopra Steria (SOP) is listed on Euronext Paris (Compartment A) – ISIN: FR0000050809
For more information, visit us at www.soprasteria.com

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Source: Sopra Steria