France's Orange lifts outlook for 2026 as quarterly results top estimates (updated)
23/04/2026 07:06
Updates with CEO and CFO comments on energy security and divestments, paragraphs 6-9
Q1 EBITDAaL rises 6.6% to 2.60 billion euros, beating analyst forecast
2026 EBITDAaL growth forecast bumped to more than 3% from around 3%
Orange fully hedged on European energy costs for 2026, over 90% for 2027
Africa & Middle East shielded by use of solar power, CFO Martinez says
By Leo Marchandon
April 23 (Reuters) - French telecom group Orange ORAN.PA raised its 2026 earnings forecast on Thursday after first-quarter results beat market expectations, with its Africa and Middle East region recording double-digit growth for a 12th straight quarter.
Orange expects earnings before interest, taxes, depreciation and amortization after leases (EBITDAaL), a key earnings metric used by telcos, to grow by more than 3% this year, having previously guided for around 3% growth.
First-quarter EBITDAaL rose 6.6% to 2.60 billion euros, ahead of analysts' consensus of 2.58 billion euros. Revenue climbed 3.5% to 10.1 billion euros ($11.8 billion), topping a forecast of 10 billion euros.
Africa and the Middle East led the way with a 12.7% revenue jump, powered by 19.4% growth in mobile data. France, Orange's largest market, grew 2.3% to 4.4 billion euros, adding 54,000 fixed broadband and 40,000 mobile customers. Cybersecurity unit Orange Cyberdefense saw 9.2% growth.
Capital expenditures were in line with the company's targets at 15.3% of revenue.
Orange is largely insulated from energy market volatility, as it is fully hedged on European energy costs through 2026 and more than 90% covered for 2027, finance chief Laurent Martinez said during a webcast.
In Africa and the Middle East, this exposure is naturally limited by the widespread use of solar power on network sites, supplemented by fuel subsidies, he added.
On the portfolio front, CEO Christel Heydemann confirmed that the planned sale of satellite services unit Globecast was expected to close later in 2026.
She said the disposal was part of routine portfolio management rather than a response to balance sheet pressure, adding Orange had the capacity to fund its pending acquisitions through its own cash flow.
In France, the company has begun decommissioning its 2G network, while the phaseout of its legacy copper infrastructure is accelerating, with 900,000 households disconnected in January.
($1 = 0.8548 euros)
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
((leo.marchandon@thomsonreuters.com))