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

Company: AtoS SE Date: 2025-08-01 Language: English Register to download
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# Press Release

# **Half-year 2025 results on track Full Year 2025 targets confirmed**

- **Significant progress in the execution of the Genesis transformation plan**
	- o **Reset of cost base well engaged, already impacting profitability**
	- o **Over 50% of the overall Genesis restructuring target incurred at the end of June**
	- o **Growth pillar initial phase achieved to deliver long-term ambition**
- **Operating Margin up 80 bps proforma from 2.0% to 2.8%, to €113m (+15.4% yoy) despite the material decline in revenue, as anticipated**
	- o **Atos SBU: +1.7 pts to 5.7% driven by initial benefits from the restructuring plan and tight contract management**
	- o **Eviden SBU: -1.7 pts to -7.9% - consistent with previously announced seasonality**
- **Significant improvement in Free Cash Flow[1](#page-0-0) to -€96m (including -€154m cash restructuring) from -€593m in H1 2024**
- **H1 revenue at €4,020m, down 17.4% organically due to expected impact of contracts exit and low business traction in 2024.**
- **Achieved a 10 pts yoy Book-to-Bill improvement reaching 83% despite soft market environment with:**
	- o **Improved or flat order entry in all regions apart from France**
	- o **Continued strategic deal wins with 11 large multi-year contracts signed vs. 5 in H1 2024. The positive commercial momentum is expected to continue in H2 2025**
	- o **Rolling 12-month pipeline increased by €1.5bn in Q2 including €1.3bn in large deals (over €30m)**
- **Full Year 2025 targets and long-term trajectory confirmed**
- **Share Purchase Agreement signed with the French State for the sale of Advanced Computing activities**

<span id="page-0-0"></span><sup>1</sup> Excluding change in Working Capital Actions

**Paris, August 1st , 2025** - Atos, a leading provider of AI-powered digital transformation, today announces its half year 2025 financial results.

# **Philippe Salle, Atos Group Chairman of the Board of Directors and Chief Executive Officer**, declared:

*"In a challenging environment, I am very encouraged by the determination of our teams in rolling-out the Genesis transformation plan with no delay. The voluntary optimization of the Group cost base is already starting to show initial benefits as shown through our half-year results: the operating margin is improving by over 15% year-on-year, a positive momentum which we intend to pursue. Our limited cash consumption is reflecting our disciplined approach to cash management, and we notice a sheer increase in enthusiasm among our customers towards the strategic refocusing of the Group.*

*We also reached a new significant milestone towards the sale of our Advanced Computing activities with the signature of a share purchase agreement with the French State.*

*We are looking ahead to the rest of the year and beyond with confidence and a single focus: executing on our strategy. We remain strongly committed to our 2025 targets and our long-term financial trajectory."*

| In € million                       | H1 2025 | H1 2024 | Var.     | H1 2024* | Organic<br>Var. |
|------------------------------------|---------|---------|----------|----------|-----------------|
| Revenue                            | 4,020   | 4,964   | (944)    | 4,865    | (845)           |
| Operating Margin                   | 113     | 115     | (2)      | 98       | +15             |
| In % of revenue                    | 2.8%    | 2.3%    | +0.5 pts | 2.0%     | +0.8 pts        |
| OMDA                               | 309     | 373     | (64)     |          |                 |
| In % of revenue                    | 7.7%    | 7.5%    | +0.2 pts |          |                 |
| Net income – Group share           | -696    | -1,941  | + 1,245  |          |                 |
| Free Cash Flow2                    | -96     | -593    | + 497    |          |                 |
| Net debt (excl. IFRS 9 adjustment) | -1,681  | -4,218  | + 2,537  |          |                 |
|                                    |         |         |          |          |                 |

# **H1 2025 performance highlights**

*\*: at constant scope and June 2025 average exchange rates*

<span id="page-1-0"></span><sup>2</sup> Excluding change in Working Capital Actions

### **Operational performance**

**Group revenue reached** 4,020 million euros in the first half 2025, reflecting a 17.4% organic decline compared to the first half of 2024, driven by 2024 contract losses and voluntary contract exits, especially in the Atos Strategic Business Unit (SBU) in the United States and the United Kingdom, as well as overall soft market environment. The Atos SBU generated revenue of 3,603 million euros, down 17.9% organically compared to the first half of 2024. The Eviden SBU revenue was down 11.9% compared to the first half of 2024, to 417 million euros in the first half of 2025.

**Group operating margin** reached 113 million euros in the first half of 2025, representing an organic 15% increase compared to the first half of 2024 and 2.8% of revenue (compared to 2.0% in the first half of 2024), despite a 845 million revenue decline year-on-year. This performance demonstrates the initial benefits of the cost reduction measures engaged since the beginning of the year, especially in the Atos SBU where the operating margin improved 18% year-on-year. The Eviden SBU profitability was lower than last year, as expected, due to a strong seasonality throughout the year.

*Disclosure in this section represents the revised reporting structure of Atos Group, following the implementation of the new organization in the first half 2025 reporting period. These are those that will be presented in the consolidated financial statements for the first half of 2025, which will be included in the 2025 half year report. Atos has identified Atos France, Atos BNN Benelux & the Nordics, Atos UK&I, Atos USA & CA, Atos GACE, Atos IM, Atos Global Delivery Centers, Eviden and Global Structures as the operating segments, mirroring the internal reporting structure. This reflects the review, management and assessment of the group's operating results by Group Management following the implementation of the new organization.*

| In € million                         | H1 2025<br>Revenue | H1 2024*<br>Revenue | Organic<br>variation | H1 2025<br>OM | H1 2024<br>OM* | H1 2025<br>OM | Organic<br>variation* |
|--------------------------------------|--------------------|---------------------|----------------------|---------------|----------------|---------------|-----------------------|
| ATOS                                 | 3,603              | 4,391               | -17.9%               | 204           | 173            | 5.7%          | +18.2%                |
| Germany, Austria &<br>Central Europe | 767                | 831                 | -7.6%                | 1             | -11            | 0.1%          | ns                    |
| USA & Canada                         | 695                | 978                 | -29.0%               | 70            | 92             | 10.1%         | -24.4%                |
| France                               | 591                | 663                 | -10.8%               | 13            | 9              | 2.1%          | +45.4%                |
| UK & Ireland                         | 583                | 821                 | -29,0%               | 50            | 48             | 8.6%          | +4.5%                 |
| International<br>Markets             | 561                | 668                 | -16.0%               | 46            | 39             | 8.2%          | +18.8%                |
| BNN Benelux & the<br>Nordics         | 402                | 425                 | -5.4%                | 23            | -1             | 5.6%          | ns                    |
| Global Delivery<br>Centers           | 5                  | 6                   | -18.7%               | 2             | -3             | 0.1%          | ns                    |
| Eviden                               | 417                | 474                 | -11.9%               | -33           | -30            | -7.9%         | +11.5%                |
| Global Structures                    | -                  | -                   | -                    | -57           | -45            | -1.4%         | +28.8%                |
| Group total                          | 4,020              | 4,865               | -17.4%               | 113           | 98             | 2.8%          | +15.4%                |

*\*: at constant scope and June 2025 average exchange rates*

**Atos - Germany, Austria & Central Europe** revenue was 767 million euros in the first half of 2025, representing a 7.6% organic decline compared to the first half of 2024 with a significant ramp down from a couple of large clients who implemented insourcing strategies. It also stemmed from managed exits from low profitability contracts. That was partially offset by successful fertilization and cross selling at existing clients.

Operating margin improved by 140 basis points year-on-year despite the non-recurring treatment of some reorganization expenses in the first half of 2024. It reached breakeven in the first half of 2025 thanks to the restructured delivery of existing contract portfolio and benefits from costsaving initiatives.

**Atos - USA & Canada** revenue decreased by 284 million euros year-on-year on a proforma basis. This was driven essentially by 2024 large contract completions and ramp-downs as well as an uncertain macro and political environment. Churn on small size contracts was more than offset by growing activity at existing clients and new contracts during the period.

Operating margin improved 60 basis points compared to the first half of 2024 despite the material impact from revenue fall thru, thanks to the Genesis-led margin optimization actions already in place. It stood at 70 million euros in the first half of 2025.

**Atos - France** revenue reached 591 million euros in the first half of 2025, down 10.8% organically from the first half of 2024, due to high exposure to the recently muted public sector and the impact of financial restructuring on client perception in 2024.

Operating margin improved by 80 basis points year-on-year thanks to the benefit of cost-cutting initiatives on indirect costs, an improved billability rate despite revenue decline and improving low profitability contract management, quality of delivery and automation.

**Atos - UK & Ireland** revenue reached 583 million euros in the first half of 2025, down 29% organically year-on-year mostly as a result of planned large public sector BPO contracts completion in the fourth quarter of 2024.

Operating margin improved 280 basis points compared to the first half of 2024. In absolute terms, it was stable year-on-year despite the sharp decrease in revenue, thanks to the restructuring of low profitability contracts, successful delivery of new business and an already visible impact from cost-saving initiatives.

**Atos - International Markets** revenue was down 16% organically in the first half of 2025, to 561 million euros, mostly driven by softer performance in Asia Pacific, Switzerland and Major events that had benefited from the Olympics in the first half of 2024. That was partially offset by growing revenues in South America.

Operating margin improved by 240 bps compared to the first half of 2024 and reached 46 million euros in the first half of 2025 (up 7 million year-on-year). The contribution from lost revenue was more than offset by improved productivity, benefits from the Genesis transformation plan and lower one-off costs year-on-year with Olympics-related marketing costs incurred in the first half of 2024.

**Atos – BNN, Benelux and the Nordics** revenue stood at 402 million euros in the first half of 2025, down 5.4% organically compared to the first half of 2024 with churn partially offset by growing activity at existing clients.

Operating margin turned positive in the first half of 2025, to 23 million euros, or 5.6% of revenues. This was driven by the ramp up of higher profitability contracts and positive contribution from the Genesis action plan and continued positive service and project delivery.

**Eviden** revenue was 417 million euros in the first half of 2025, down 11.9% organically year-onyear, driven by the anticipated strong seasonality in Advanced Computing (down 10.9% compared to the first half of 2024).

Operating margin was –33 million euros, compared to -30 million euros in the first half of 2024 again, due to the seasonality in Advanced Computing. Significant revenue and profit recognition is expected in the fourth quarter of 2025. On a full-year basis the business unit is expected to generate positive operating margin.

**Global Structures** costs stood at -57 million euros in the first half of 2025, compared to -45 million euros in the first half of 2024, due to the non-recurring treatment of reorganization costs in the first half of 2024 and the UEFA marketing costs incurred centrally in the first half of 2025.

# **Update on the Genesis plan execution**

At the Capital Markets Day that was held on May 14, 2025, the Group unveiled "Genesis", its strategic and transformation plan for the next 4 years. It includes 22 workstreams regrouped under 7 pillars:

- Growth
- Human Resources
- Countries review
- Portfolio review
- Gross Margin
- Cost review
- Cash

During the first half of 2025 significant progress was achieved, including the following:

- **Growth transformation:** it has now passed the initial phase with a new growth and sales teams operating model deployed in all geographies and centrally. That included the right sizing and upskilling of the teams and sales enablement initiatives as well as prioritization to ensure frontline excellence and support future growth ambition. With that, processes were streamlined and optimized, enabling the sales force to concentrate efforts on meeting client needs. It is anticipated to yield results from the second half onwards
- **Countries review:** to sharpen the geographical focus as announced in the Capital Markets Day, the Group exited one country and formally launched disposal processes for additional non-core countries
- **Contract portfolio review**: in the first half of 2025, the Group reduced its exposure to low margin contracts (ie contracts with a project margin below 5%) to only three significant ones (vs seven at the end of 2024), and totaling a c.16 million euros negative impact on operating margin compared to c.52 million euros in the first half of 2024
- **Delivery and G&A optimization:** the billability rate improved from 76% to 79% during the first half, and the General & Administrative cost base was reduced by 10% compared to the same period last year. Overall, over 50% of the 3-year restructuring envelope of 700 million euros was incurred at the end of June. The total **headcount** was 69,597 at the end of the period

# **Order entry and backlog**

# Commercial activity

**Order entry** reached €3.3 billion in H1 2025, slightly lower than the reported H1 2024 level, due to:

- Muted commercial activity in France where significant organizational changes are being implemented to improve commercial efficiency, enrich our offering and secure long term business performance. All other regions delivered roughly flat or growing order entry in the first half of the year
- The soft market environment observed in the last few months

**Book-to-bill** ratio was 83% in the first half of 2025, up from 73% in the same period of 2024. Main contract signatures in the second quarter of 2025 included two 4+ years Digital workplace deals totaling 140 million euros (of which 100 million euros in North America and 40 million euros in the UK), a 5+ years 80 million euros mainframe deal with a North American wholesaler of technology products, a 4+ years 50 million euros Cybersecurity contract in the public sector in Belgium, and two 3+ years digital applications contracts in Europe for a cumulative amount of 90 million euros with a consumer goods player on one side and a public sector body on the other.

#### Backlog & commercial pipeline

At the end of June 2025, the **full backlog** reached €12 billion representing 1.5 years of revenue. The **full qualified pipeline** amounted to €4.1 billion at the end of June 2025, representing 6.1 months of revenue.

#### **Net income**

# **OOI**

Other operating income and expenses amounted to –566 million euros in the first half of 2025, compared to –1,819 million euros in the first half of 2024. It mostly included restructuring and other non-recurring charges in relation to the Genesis transformation plan, as well as litigation provisions.

#### **Financial income**

Net financial expense was -202 million euros in the first half of 2025, compared to -175 million euros in the first half of 2024, reflecting the new debt structure of the Group and the fair value adjustment of the net debt.

#### **Tax**

Tax charge stood at -41 million euros in the first half of 2025, compared to -62 million euros in the first half of 2024.

#### **Net result group share**

As a result of the above net result Group share was a loss of –696 million euros in the first half of 2025, compared to a loss of –1,941 million euros in the first half of 2024.

# **Free cash flow**

Free cash flow for the period stood at –96 million euros for the period excluding changes in working capital actions (WCA), reflecting the following items:

- Operating margin before depreciation and amortization (OMDA) of 309 million euros
- Capex of –93 million euros, or 2.3% of revenues
- Leases of –122 million euros
- Change in working capital requirement (excluding WCA) of 167 million euros, mostly driven by lower activity in the first half of 2025
- Cash restructuring of –154 million euros, in relation to the Genesis transformation plan
- Tax paid of -13 million euros
- Net cash cost of debt of –80 million euros, including 18 million euros of financial income
- Other items for –109 millions, that included litigation and onerous contracts

# **Net debt and debt covenants**

At June 30, 2025, net debt was 1,681 million euros (746 million euros including IFRS 9 debt fair value adjustment), compared to 1,238 million euros as of December 31, 2024 (275 million euros including IFRS 9 debt fair value adjustment), and mainly consisted of:

- Cash and cash equivalents for 1,364 million euros
- Borrowings for 3,057 million euros (nominal value, excluding PIK) or 2,186 million euros including IFRS 9 fair value adjustment and PIK

The new credit documentation requires the Group to maintain:

- from 31 March 2025, a minimum liquidity level of €650 million, to be verified at the end of each financial quarter
- from 30 June 2027, as from each half-year end, a maximum level of financial leverage ("Total Net Leverage Ratio Covenant"), which is defined as the ratio of Financial indebtedness (mainly excluding IFRS 16 impacts and IFRS 9 debt fair value treatment) to pre-IFRS 16 OMDA; the ceilings thus applicable will be determined no later than 30 June 2026 with reference to a flexibility of 30% in relation to the Business Plan adopted by the Group at that time; these ceilings will in any event remain between 3.5x and 4.0x.

As of June 30, 2025, the Group financial leverage ratio (as defined in glossary) was 4.0x.

# **Outlook**

The Group confirms its full year 2025 targets:

- c. 8.5 billion euros revenue[3](#page-6-0)
- around 4% operating margin
- net change in cash<sup>4</sup> before debt repayment of c. -350 million euros

The long-term financial trajectory also remains unchanged.

In 2026, the Group expects to generate positive organic growth and net change in cash[4](#page-6-1) before debt repayment and M&A.

In 2028, with the assumption of a disposal of Advanced Computing in FY 2026 and a progressive reduction of its geographic footprint, the Group expects:

<span id="page-6-0"></span><sup>3</sup> At Dec 31, 2024 currency

<span id="page-6-1"></span><sup>4</sup> At constant currency

- to grow revenues organically to between 8.5 and 9 billion euros, representing a 5-7% CAGR between 2025 and 2028. Strategic, targeted and disciplined M&A could further increase revenue to up to 9 to 10 billion euros
- to reach an operating margin of around 10%, supported by cost reduction measures and structural visible growth, partially offset by an acceleration of R&D investments
- to achieve a leverage ratio below 1.5x net debt/OMDAL[5](#page-7-0) . On the path to an investment grade rating, the Group expects to achieve a BB profile in 2027

# **Sale of Advanced Computing**

On July 31, 2025, Atos Group signed a share purchase agreement with the French State for the sale of its Advanced Computing business, excluding Vision AI activities, for an enterprise value (EV) of €410 million, including €110m earn-outs that are based on profitability indicators for fiscal years 2025 (€50 million potential earn-out that should be paid upon closing) and 2026 (€60 million additional potential earn-out). This EV is in line with the confirmatory offer received from the French State on June 2, 2025 which has been approved by Atos Group Board of Directors.

Atos Advanced Computing business regroups the High-Performance Computing (HPC) & Quantum as well as the Business Computing & Artificial intelligence divisions. The transaction perimeter is expected to generate revenue of circa €0.8 billion in 2025.

The French State will become the new shareholder of these activities, further supporting the business and its development over the long term.

Social processes for the signing of the SPA agreement are closed. The transaction is expected to close over H1 2026 once the carveout is completed and relevant authorizations have been received.

<span id="page-7-0"></span><sup>5</sup> Defined as Operating Margin before Depreciations, Amortization and Leases

# **Interim condensed consolidated financial statements**

Atos Group Board of Directors in its meeting held on July 31, 2025, has reviewed the Group interim condensed consolidated financial statements closed at June 30, 2025. The Statutory Auditors have completed their usual limited review of the half-year condensed consolidated financial statements and issued their unqualified report.

# **Conference call**

Atos Group's Management invites you to attend the first half 2025 results conference call on **Friday, August 1st, 2025, at 08:00 am (CET – Paris).**

You can join the **webcast** of the conference via the following link:

**<https://edge.media-server.com/mmc/p/mz677p34>**

If you want to join the conference by **telephone**, please register via this link**:** 

**[https://register-conf.media](https://register-conf.media-server.com/register/BIc7cb4acc36ee4ddbbe4878cdc98936fa)[server.com/register/BIc7cb4acc36ee4ddbbe4878cdc98936fa](https://register-conf.media-server.com/register/BIc7cb4acc36ee4ddbbe4878cdc98936fa)**

Upon registration, you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details.

After the conference, a replay of the webcast will be available on [atos.net,](https://atos.net/en/investors) in the Investors section.

# **Forthcoming events**

October 20, 2025 (After Market Close) Third quarter 2025 revenue

### **APPENDIX**

#### **H1 2024 revenue and operating margin at constant scope and exchange rates reconciliation**

For the analysis of the Group's performance, revenue and OM for H1 2025 is compared with H1 2024 revenue and OM at constant scope and foreign exchange rates. Reconciliation between the H1 2024 reported revenue and OM, and the H1 2024 revenue and OM at constant scope and foreign exchange rates is presented below, by segment.

| H1 2024 revenue<br>In € million   | H1 2024<br>published | Restatement | H1<br>2024<br>restated | Internal<br>transfers | Scope<br>effects | Exchange<br>rates<br>effects | H1<br>2024* |
|-----------------------------------|----------------------|-------------|------------------------|-----------------------|------------------|------------------------------|-------------|
| ATOS                              | 4,259                | 234         | 4,493                  | -3                    | -85              | -13                          | 4,391       |
| Germany, Austria & Central Europe | 779                  | 62          | 841                    | 0                     | -11              | 0                            | 831         |
| USA & Canada                      | 949                  | 38          | 987                    | 0                     | 0                | -9                           | 978         |
| France                            | 686                  | 39          | 725                    | -4                    | -58              | 0                            | 663         |
| UK & Ireland                      | 791                  | 17          | 808                    | 0                     | 0                | 13                           | 821         |
| International Markets             | 675                  | 27          | 702                    | 0                     | -16              | -17                          | 668         |
| BNN Benelux & the Nordics         | 375                  | 49          | 424                    | 1                     | 0                | 0                            | 425         |
| Global Delivery Centers           | 4                    | 2           | 6                      | 0                     | 0                | 0                            | 6           |
| Eviden                            | 705                  | -234        | 471                    | 3                     | 0                | 0                            | 474         |
| Global Structures                 | -                    | -           | -                      | -                     | -                | -                            | -           |
| Group Total                       | 4,964                | 0           | 4,964                  | 0                     | -86              | -13                          | 4,865       |

| H1 2024 Operating Margin<br>In € million | H1 2024<br>published | Restatement | H1<br>2024<br>restated | Internal<br>transfers | Scope<br>effects | Exchange<br>rates<br>effects | H1<br>2024* |
|------------------------------------------|----------------------|-------------|------------------------|-----------------------|------------------|------------------------------|-------------|
| ATOS                                     | 175                  | -1          | 174                    | 1                     | -15              | 12                           | 173         |
| Germany, Austria & Central Europe        | -16                  | 2           | -14                    | -2                    | -2               | 7                            | -11         |
| USA & Canada                             | 97                   | 0           | 96                     | 0                     | 0                | -4                           | 92          |
| France                                   | 14                   | -2          | 12                     | 2                     | -10              | 5                            | 9           |
| UK & Ireland                             | 47                   | 0           | 47                     | 0                     | 0                | 1                            | 48          |
| International Markets                    | 40                   | 0           | 40                     | 0                     | -3               | 2                            | 39          |
| BNN Benelux & the Nordics                | -4                   | 3           | -1                     | -3                    | 0                | 3                            | -1          |
| Global Delivery Centers                  | -3                   | -3          | -6                     | 3                     | 0                | -1                           | -3          |
| Eviden                                   | -16                  | 2           | -14                    | -2                    | 0                | -13                          | -30         |
| Global Structures                        | -44                  | -1          | -45                    | 1                     | 0                | -1                           | -45         |
| Group Total                              | 115                  | 0           | 115                    | 0                     | -15              | -2                           | 98          |

*\*: at constant scope and June 2025 average exchange rates*

Restatement corresponds to the transfer of Cybersecurity Services from Eviden to Atos.

Scope effects amounted to €-86 million. They related to the divesture of Worldgrid in France, International Markets (Iberia) and Germany.

Currency effects negatively contributed to revenue of -13 million. They mostly came from the depreciation of the US dollar, the Brazilian real, the Argentinian peso and the Turkish lira, partially compensated by the appreciation of the British pound.

### **Q1 2024 revenue at constant scope and exchange rates reconciliation**

For the analysis of the Group's performance, revenue for Q1 2025 is compared with Q1 2024 revenue at constant scope and foreign exchange rates.

| Q1 2024 revenue<br>In € million   | Q1 2024<br>published | Restatement | Q1<br>2024<br>restated | Internal<br>transfers | Scope<br>effects | Exchange<br>rates<br>effects | Q1<br>2024* |
|-----------------------------------|----------------------|-------------|------------------------|-----------------------|------------------|------------------------------|-------------|
| ATOS                              | 2,155                | 118         | 2,273                  | -1                    | -43              | 22                           | 2,251       |
| Germany, Austria & Central Europe | 385                  | 30          | 416                    | 0                     | -6               | 0                            | 410         |
| USA & Canada                      | 474                  | 20          | 493                    | 0                     | 0                | 15                           | 509         |
| France                            | 354                  | 20          | 375                    | -2                    | -30              | 0                            | 343         |
| UK & Ireland                      | 410                  | 9           | 419                    | 0                     | 0                | 10                           | 430         |
| International Markets             | 339                  | 14          | 352                    | 0                     | -8               | -4                           | 341         |
| BNN Benelux & the Nordics         | 190                  | 25          | 215                    | 0                     | 0                | 0                            | 215         |
| Global Delivery Centers           | 2                    | 1           | 3                      | 0                     | 0                | 0                            | 3           |
| Eviden                            | 324                  | -118        | 206                    | 1                     | 0                | 1                            | 207         |
| Global Structures                 | 0                    | 0           | 0                      | 0                     | 0                | 0                            | 0           |
| Group Total                       | 2,479                | 0           | 2,479                  | 0                     | -44              | 23                           | 2,458       |

*\* at constant scope and June 2025 average exchange rates*

#### **Q2 2024 revenue at constant scope and exchange rates reconciliation**

For the analysis of the Group's performance, revenue for Q2 2025 is compared with Q2 2024 revenue at constant scope and foreign exchange rates.

| Q2 2024 revenue<br>In € million   | Q2 2024<br>published | Restatement | Q2<br>2024        | Internal<br>transfers | Scope<br>effects | Exchange<br>rates | Q2<br>2024* |
|-----------------------------------|----------------------|-------------|-------------------|-----------------------|------------------|-------------------|-------------|
| ATOS                              | 2,105                | 116         | restated<br>2,220 | -2                    | -42              | effects<br>-35    | 2,140       |
| Germany, Austria & Central Europe | 394                  | 31          | 425               | 0                     | -5               | 0                 | 420         |
| USA & Canada                      | 476                  | 18          | 494               | 0                     | 0                | -24               | 470         |
| France                            | 331                  | 18          | 350               | -2                    | -28              | 0                 | 320         |
| UK & Ireland                      | 380                  | 9           | 389               | 0                     | 0                | 2                 | 391         |
| International Markets             | 337                  | 13          | 350               | 0                     | -8               | -13               | 327         |
| BNN Benelux & the Nordics         | 184                  | 25          | 209               | 0                     | 0                | 0                 | 210         |
| Global Delivery Centers           | 2                    | 1           | 3                 | 0                     | 0                | 0                 | 3           |
| Eviden                            | 381                  | -116        | 265               | 2                     | 0                | 0                 | 266         |
| Global Structures                 | -                    | -           | -                 | -                     | -                | -                 | -           |
| Group Total                       | 2,486                | 0           | 2,486             | 0                     | -42              | -36               | 2,407       |

*\* at constant scope and June 2025 average exchange rates*

| Q1 2025 and Q2 2025 revenue according to the new Group reporting structure |  |  |  |  |  |
|----------------------------------------------------------------------------|--|--|--|--|--|
|----------------------------------------------------------------------------|--|--|--|--|--|

| In € million                         | Q1 2025<br>Revenue | Q1 2024*<br>Revenue | Organic<br>variation* | Q2 2025<br>Revenue | Q2 2024*<br>Revenue | Organic<br>variation* |
|--------------------------------------|--------------------|---------------------|-----------------------|--------------------|---------------------|-----------------------|
| ATOS                                 | 1,861              | 2,251               | -17.3%                | 1,742              | 2,140               | -18.6%                |
| Germany, Austria & Central<br>Europe | 385                | 410                 | -6.1%                 | 382                | 420                 | -9.1%                 |
| USA & Canada                         | 370                | 509                 | -27.3%                | 324                | 470                 | -31.0%                |
| France                               | 304                | 343                 | -11.4%                | 287                | 320                 | -10.2%                |
| UK & Ireland                         | 302                | 430                 | -29.6%                | 280                | 391                 | -28.4%                |
| International Markets                | 290                | 341                 | -14.8%                | 271                | 327                 | -17.1%                |
| BNN Benelux & the Nordics            | 206                | 215                 | -4.4%                 | 196                | 210                 | -6.4%                 |
| Global Delivery Centers              | 2                  | 3                   | -10.6%                | 2                  | 3                   | -23.9%                |
| Eviden                               | 208                | 207                 | 0.1%                  | 210                | 266                 | -21.3%                |
| Global Structures                    | -                  | -                   | -                     | -                  | -                   | -                     |
| Group total                          | 2,068              | 2,458               | -15.9%                | 1,952              | 2,407               | -18.9%                |

*\* at constant scope and June 2025 average exchange rates*

#### **H1 2025 consolidated Profit & Loss Account**

|                                        | 6 months ended | 6 months ended |
|----------------------------------------|----------------|----------------|
| (in € million)                         | June 30, 2025  | June 30, 2024  |
| Revenue                                | 4,020          | 4,964          |
| Personnel expense                      | -2,115         | -2,615         |
| Non-personnel operating expense        | -1,792         | -2,235         |
| Operating margin                       | 113            | 115            |
| % of revenue                           | 2.8%           | 2.3%           |
| Other operating income and expense     | -566           | -1,819         |
| Operating income (loss)                | -452           | -1,704         |
| % of revenue                           | -11.3%         | -34.3%         |
| Net cost of financial debt             | -162           | -73            |
| Other financial expense                | -62            | -135           |
| Other financial income                 | 22             | 33             |
| Net financial income (expense)         | -202           | -175           |
| Net income (loss) before tax           | -654           | -1,879         |
| Tax charge                             | -41            | -62            |
| Net income (loss)                      | -695           | -1,941         |
| Of which:                              |                |                |
| ▪ attributable to owners of the parent | -696           | -1,941         |
| ▪ non-controlling interests            | 1              | 0              |

# **H1 2025 Consolidated Cash Flow Statement**

|                                                              | 6 months      | 6 months      |
|--------------------------------------------------------------|---------------|---------------|
|                                                              | ended         | ended         |
| in € million                                                 | June 30, 2025 | June 30, 2024 |
| Net income (loss) before tax                                 | -654          | -1,879        |
| Depreciation of fixed assets                                 | 134           | 125           |
| Depreciation of right-of-use                                 | 99            | 138           |
| Net addition (release) to operating provisions               | -1            | -10           |
| Net addition (release) to financial provisions               | 6             | 28            |
| Net addition (release) to other operating provisions         | 199           | -55           |
| Amortization of intangible assets (PPA from acquisitions)    | 12            | 29            |
| Impairment of goodwill and other non-current assets          | 24            | 1 570         |
| Losses (gains) on disposals of non-current assets            | 3             | 71            |
| Net charge for equity-based compensation                     | -             | 3             |
| Unrealized losses (gains) on changes in fair value and other | -             | -1            |
| Net cost of financial debt                                   | 162           | 73            |
| Interests on lease liability                                 | 15            | 19            |
| Net cash from (used in) operating activities                 | -3            | 111           |
| before change in working capital requirement and taxes       |               |               |
| Tax paid                                                     | -13           | -45           |
| Change in working capital requirement                        | 43            | -1 477        |
| Net cash from (used in) operating activities                 | 28            | -1,411        |
| Payment for tangible and intangible assets                   | -93           | -278          |
| Proceeds from disposals of tangible and intangible assets    | -             | 5             |
| Net operating investments                                    | -93           | -273          |
| Amounts paid for acquisitions and long-term investments      | -             | -10           |
| Net proceeds from disposals of financial investments         | 1             | -1            |
| Net long-term financial investments                          | 1             | -11           |
| Net cash from (used in) investing activities                 | -92           | -284          |
| Common stock issued                                          | 1             | -             |
| Purchase and sale of treasury stock                          | -             | -1            |
| Dividends paid*                                              | -             | -12           |
| Dividends paid to non-controlling interests                  | -             | -2            |
| Lease payments                                               | -122          | -159          |
| New borrowings                                               | -             | 470           |
| Repayment of borrowings                                      | -             | -10           |
| Interests paid                                               | -80           | -53           |
| Other flows related to financing activities                  | -6            | -77           |
| Net cash from (used in) financing activities                 | -207          | 155           |
| Increase (decrease) in net cash and cash equivalents         | -271          | -1,540        |
| Opening net cash and cash equivalents                        | 1,739         | 2,295         |
| Increase (decrease) in net cash and cash equivalents         | -271          | -1,540        |
| Impact of exchange rate fluctuations on cash and cash        |               |               |
| equivalents                                                  | -104          | 4             |
| Closing net cash and cash equivalents                        | 1,364         | 759           |

# **H1 2025 Balance Sheet**

|                                     | June 30, | December 31, |
|-------------------------------------|----------|--------------|
| (in € million)                      | 2025     | 2024         |
| ASSETS                              |          |              |
| Goodwill                            | 574      | 653          |
| Intangible assets                   | 306      | 349          |
| Tangible assets                     | 524      | 580          |
| Right-of-use assets                 | 466      | 550          |
| Equity-accounted investments        | 12       | 12           |
| Non-current financial assets        | 98       | 131          |
| Deferred tax assets                 | 213      | 184          |
| Total non-current assets            | 2,193    | 2,458        |
| Trade accounts and notes receivable | 2,190    | 2,435        |
| Current taxes                       | 90       | 102          |
| Other current assets                | 1,340    | 1,510        |
| Current financial instruments       | 0        | 2            |
| Cash and cash equivalents           | 1,364    | 1,739        |
| Total current assets                | 4,984    | 5,788        |
| TOTAL ASSETS                        | 7,176    | 8,246        |

|                                                            | June 30, | December 31, |
|------------------------------------------------------------|----------|--------------|
| (in € million)                                             | 2025     | 2024         |
| LIABILITIES AND SHAREHOLDERS' EQUITY                       |          |              |
| Common stock                                               | 19       | 18           |
| Additional paid-in capital                                 | 1,887    | 1,887        |
| Consolidated retained earnings                             | -1,302   | -1,354       |
| Net income (loss) attributable to the owners of the parent | -696     | 248          |
| Equity attributable to the owners of the parent            | -91      | 799          |
| Non-controlling interests                                  | 1        | -            |
| Total shareholders' equity                                 | -91      | 799          |
| Provisions for pensions and similar benefits               | 664      | 782          |
| Non-current provisions                                     | 465      | 345          |
| Borrowings                                                 | 2,174    | 2,089        |
| Deferred tax liabilities                                   | 138      | 69           |
| Non-current lease liabilities                              | 438      | 498          |
| Other non-current liabilities                              | 4        | 3            |
| Total non-current liabilities                              | 3,884    | 3,787        |
| Trade accounts and notes payable                           | 971      | 1,018        |
| Current taxes                                              | 66       | 75           |
| Current provisions                                         | 386      | 315          |
| Current portion of borrowings                              | 11       | 17           |
| Current lease liabilities                                  | 190      | 207          |
| Other current liabilities                                  | 1,759    | 2,028        |
| Total current liabilities                                  | 3,383    | 3,660        |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                 | 7,176    | 8,246        |

# **Glossary**

**Operational capital employed:** Operational capital employed comprises net fixed assets and net working capital but excludes goodwill and net assets held for sale.

#### **Current and non-current assets or liabilities:**

A current and non-current distinction is made between assets and liabilities on the consolidated statement of financial position. Atos has classified as current assets and liabilities those assets and liabilities that Atos expects to realize, use or settle during its normal cycle of operations, which can extend beyond 12 months following the period end. Current assets and liabilities, excluding the current portion of borrowings, lease liabilities and provisions, and current financial instruments represent the Group working capital requirement.

**DSO:** (Days of Sales Outstanding). DSO is the amount of trade accounts receivable (including contract assets) expressed in days of revenue (on a last-in, first-out basis). The number of days is calculated in accordance with the Gregorian calendar.

**Organic growth:** Organic growth represents the percent growth of a unit based on a constant scope and exchange rates basis.

**CAGR:** The Compound Annual Growth Rate reflects the mean annual growth rate over a specified period of time longer than one year. It is calculating by dividing the value at the end of the period in question by its value at the beginning of that period, raise the result to the power of one divided by the period length, and subtract one from the subsequent result. As an example:

2019-2021 revenue CAGR = (Revenue 2021 / Revenue 2018) (1/3) -1

**Operating margin:** Operating margin equals to External Revenues less personnel and operating expense. It is calculated before Other Operating Income and Expense as defined below.

#### **Other operating income and expense:**

Other operating income and expense include:

- the amortization and impairment of intangible assets recognized as part of business combinations such as customer relationships, technologies and goodwill
- when accounting for business combinations, the Group may record provisions in the opening statement of financial position for a period of 12 months beyond the business combination date. After the 12-month period, unused provisions arising from changes in circumstances are released through the income statement under "Other operating income and expense"
- the cost of acquiring and integrating newly controlled entities, including earn out with or without presence conditions
- the net gains or losses on disposals of consolidated companies or businesses
- the fair value of shares granted to employees including social contributions
- the restructuring and rationalization expense relating to business combinations or qualified as unusual, infrequent and abnormal. When a restructuring plan qualifies for Other operating income and expense, the related real estate rationalization & associated costs regarding premises are presented on the same line
- the curtailment effects on restructuring costs and the effects of plan amendments on defined benefit plans resulting from triggering events that are not under control of Atos management
- the net gain or loss on tangible and intangible assets that are not part of Atos core-business such as real estate
- other unusual, abnormal and infrequent income or expense such as major disputes or litigation.

**Gross margin and indirect costs:** Gross margin is composed of revenue less the direct costs of goods sold. Direct costs relate to the generation of products and/or services delivered to customers, while indirect costs include all costs related to indirect staff (defined hereafter), which are not directly linked to the realization of the revenue. The operating margin comprises gross margin less indirect costs.

**EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization)**: for Atos, EBITDA is based on Operating Margin less noncash items and is referred to as OMDA (Operating Margin before Depreciation and Amortization).

**OMDA** (Operating Margin before Depreciation and Amortization) is calculated as follows:

Operating margin:

- less Depreciation of fixed assets (as disclosed in the "financial report")
- less Depreciation of right of use (as disclosed in the "financial report")
- less Net charge (release) of provisions (composed of net charge of provisions for current assets and net charge of provisions for contingencies and losses, both disclosed in the "financial report")
- less Net charge (release) of provisions for pensions (as disclosed in the "financial report").

**OMDAL:** OMDA – lease repayments.

**Gearing:** The proportion, expressed as a percentage of net debt to total shareholders' equity (Group share and minority interests).

**Interest cover ratio:** Operating margin divided by the net cost of financial debt, expressed as a multiple.

**Leverage ratio:** Net debt (before changes in working capital actions and IFRS 9 fair value adjustment) / OMDAL rolling 12-months.

**Operating income (loss):** Operating income (loss) comprises net income (loss) before deferred and current income taxes, net financial income (expense), and share of net profit (loss) of equityaccounted investments.

**Cash flow from operations:** Cash flow coming from the operations and calculated as a difference between OMDA, net capital expenditures, lease payment and change in working capital requirement.

**Net cash or net debt:** Net cash or net debt comprises total borrowings (bonds, short term and long-term loans, securitization and other borrowings), short-term financial assets and liabilities bearing interest with maturity of less than 12 months, less cash and cash equivalents. Liabilities associated with lease contracts and derivatives are excluded from the net debt.

**Free Cash Flow (FCF):** The Free Cash Flow represents the change in net cash or net debt, excluding capital increase, share buyback, dividends paid to shareholders and noncontrolling interests, net acquisition or disposal of companies.

**Earnings (loss) per share (EPS):** Basic EPS is the net income (loss) divided by the weightedaverage number of common shares outstanding during the period. Diluted EPS is the net income (loss) divided by the diluted weighted-average number of common shares for the period (number of shares outstanding + dilutive instruments with dilutive effect).

**Revenue:** Revenue related to Atos' sales to third parties (excluding VAT).

**TCV (Total Contract Value):** The Total Value of a Contract at signature (prevision or estimation) over its duration represents the firm order and contractual part of the contract excluding any clause on the decision of the client, as anticipated withdrawal clause, additional option or renewal.

**Order entry/bookings:** The TCV, orders or amendments signed during a defined period. When an offer is won (contract signed), the total contract value is added to the backlog and the order entry is recognized.

**Book-to-bill:** The Book-to-Bill is the ratio expressed in percentage of the order entry in a period divided by revenue of the same period.

**Backlog/Order cover:** The value of signed contracts, orders and amendments that remain to be recognized over their contract lives.

**Pipeline:** The value of revenues that may be earned from outstanding commercial proposals issued to clients. Qualified pipeline applies an estimated percentage likelihood of proposal success.

**Direct Staff:** Direct staff includes permanent staff and subcontractors, whose work is billable to a third party.

**Indirect staff:** Indirect staff includes permanent staff or subcontractors, who are not billable to clients. Indirect staff is not directly involved in the generation of products and/or services delivered to clients.

#### **Disclaimer**

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors' behaviors. Any forward-looking statements made in this document are statements about Atos's beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos's plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2024 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 10, 2025 under the registration number D.25-0238. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.

This document does not contain or constitute an offer of Atos's shares for sale or an invitation or inducement to invest in Atos's shares in France, the United States of America or any other jurisdiction. This document includes information on specific transactions that shall be considered as projects only. In particular, any decision relating to the information or projects mentioned in this document and their terms and conditions will only be made after the ongoing in-depth analysis considering tax, legal, operational, finance, HR and all other relevant aspects have been completed and will be subject to general market conditions and other customary conditions, including governance bodies and shareholders' approval as well as appropriate processes with the relevant employee representative bodies in accordance with applicable laws.

#### **About Atos Group**

Atos Group is a global leader in digital transformation with c. 70,000 employees and annual revenue of c. € 10 billion, operating in 67 countries under two brands — Atos for services and Eviden for products. European number one in cybersecurity, cloud and high-performance computing, Atos Group is committed to a secure and decarbonized future and provides tailored AI-powered, end-to-end solutions for all industries. Atos is a SE (Societas Europaea) and listed on Euronext Paris.

The [purpose of Atos](https://atos.net/en/raison-detre) is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

#### **Contact**

Investor relations: investors@atos.net Individual shareholders: +33 8 05 65 00 75 Media relations: globalprteam@atos.net