Edenred soars in Paris after above-expected accounts with record profits

(Il Sole 24 Ore Radiocor) - Edenred rocketed on the Paris Stock Exchange thanks tostrong results for 2025, accompanied by a dividend increase, despite the impact of unfavourable regulatory reforms in Italy and Brazil. In a statement Edenered underlines the record levels of profitability and the achievement of all operational and financial targets. In 2025, attributable net profit reached EUR 521 million, up 2.8% year-on-year. Ebitda increased by 11.2% to EUR 1.36 billion, with a margin of 45.9%, compared to 44.3% in 2024, 'thanks to cost discipline'.

Thetotal group turnover rose 3.7% to 2.96 billion, up 3.7% from 2024, despite the impact of the cap on merchant commissions in Italia, effective 1 September 2025. On an organic level, growth was 5.7%. Free cash flow reached EUR 1.11 billion, up 34% year-on-year, and helped reduce net debt, which fell 31% to EUR 1.24 billion. The results exceeded expectations. According to a consensus compiled by Edenred, analysts on average expected total sales of EUR 2.95 billion, Ebitda of EUR 1.34 billion, net profit of EUR 508 million and free cash flow of EUR 888 million. In light of this performance, Edenred is proposing a dividend of EUR 1.33 per share for the financial year 2025, a 10% increase over the previous year.

Edenred also confirmed its forecast of a drop in Ebitda in 2026 due to the impact of regulatory changes. The group expects an organic Ebitda decline of between 8% and 12% and is also targeting a free cash flow to Ebitda conversion rate of more than 35%. "Although the size and diversity of our solutions portfolio will allow us to mitigate the impact of the regulatory changes taking place in Italia and Brazil, these changes will still affect our performance in 2026," commented Bertrand Dumazy, CEO of Edenred, quoted in a press release. "We are however confident in our ability to quickly resume our profitable and sustainable growth path, counting in particular on the implementation of our Amplify strategic plan," the ceo added.

Analyst reactions were positive. "The free cash flow is significantly higher than expected and allows the group to face a fiscal 2026 'rebasing' year, in line with consensus expectations, with a stronger than expected financial position," Invest Securities commented. An opinion shared by Oddo BHF, which welcomes 'slightly higher than expected 2025 results and unchanged outlook, in line with consensus'.