Elior shares plunge after caterer cuts 2026 outlook

Elior SA

21/05/2026 08:35

** Shares in Elior ELIOR.PA fall 23% to the bottom of France's SBF 120 index .SBF120 after the catering company cut its revenue and margin forecasts for 2026 on Wednesday

** Elior's majority shareholder Derichebourg DBG.PA also falls more than 6% after the results

** Elior lowers 2026 organic revenue growth guidance to 1-2% from 3-4% and adjusted core profit margin target to 3%, having previously forecast a range of 3.5% to 3.7%

** It booked a €25 million ($29 million) provision tied to a pricing dispute with an Italian rail operator, which weighed on H1 results

** "Elior's H1 reset changes the story from smooth turnaround to delayed recovery in our view," Kepler Chevreux says in a note

** Short-term operating headwinds and weaker margins weigh on the outlook, the broker adds

** The shares are on track for their worst day since November 2024 if the losses hold

($1 = 0.8608 euros)

(Reporting by Ronan Corcoran in Gdansk)

((Ronan.Corcoran@thomsonreuters.com))