French circular services group reported stable first-half margins, higher net income and completion of a €500 million share buyback, while citing softer conditions in parts of Europe and volume losses in Mexico.
Elis reported first-half 2026 revenue of €2,457.1 million, up 4.9% year on year, including 3.2% organic growth, and confirmed all 2026 financial objectives. Adjusted EBITDA rose 4.9% to €853.8 million with the margin stable at 34.7%, adjusted EBIT increased 4.6% to €370.0 million with the margin unchanged at 15.1%, and net income climbed 7.3% to €163.6 million. Headline net income rose 1.1% to €215.5 million and diluted headline EPS increased 5.1% to €0.89. The company said commercial momentum improved, helped by sales-force investment and record contract signings, with Hospitality and industrial workwear performing well overall. Latin America remained a growth driver, but Mexico was affected by a federal healthcare-system reorganization that led to a public tender and the loss of 50% of the affected volumes from June, equal to about €2 million per month and an estimated €14 million hit to full-year 2026. Free cash flow was negative €30.1 million, reflecting seasonal working-capital outflows, inventory build-up and a rise in DSO to 57 days from 54 days a year earlier. Net financial debt excluding lease liabilities rose to €3,670.3 million at June 30, 2026, with leverage at 2.09x. Elis reiterated its 2026 outlook for organic revenue growth slightly below 2025 levels, slight improvement in adjusted EBITDA and adjusted EBIT margins, mid-single-digit free-cash-flow growth, high-single-digit diluted headline EPS growth and about a 0.1x reduction in leverage by year-end versus December 31, 2025.