France's Veolia H1 net income rises 10.4% on efficiency gains
France's Veolia H1 net income rises 10.4% on efficiency gains
Overview
France-based environmental services firm's H1 2026 revenue rose 0.8%, EBITDA margin improved 70bps
Current net income group share grew 10.4% yr/yr, driven by operational efficiency gains
Company completed Clean Earth acquisition, doubling US hazardous waste business
Outlook
Veolia raises 2026 current net income group share growth target to minimum 8% at constant forex
Company expects 2026 organic EBITDA growth of 5% to 6%
Veolia confirms solid organic revenue growth for 2026, excluding energy prices
Result Drivers
OPERATIONAL EFFICIENCY - Margin and net income gains were driven by pricing, productivity, and efficiency improvements, with €195 mln in gross efficiency gains in H1
REGIONAL GROWTH - Strong performances in the Americas, Asia Pacific, and Africa Middle-East, supported by tariff indexations, higher volumes, and commercial momentum
CLEAN EARTH ACQUISITION - Completion of Clean Earth deal in the US doubled hazardous waste revenues and expanded the company's growth platform
Company press release: ID:nBw6pJ524a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Slight Beat* | EUR 22.19 bln | EUR 22.02 bln (1 Analyst) |
H1 Net Income |
| EUR 837 mln |
|
H1 EBIT |
| EUR 1.96 bln |
|
H1 EBITDA |
| EUR 3.55 bln |
|
H1 EBITDA Margin |
| 16.00% |
|
H1 Free Cash Flow |
| -EUR 288 mln |
|
H1 Net Debt |
| EUR 24.55 bln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy"
Wall Street's median 12-month price target for Veolia Environnement SA is €40.15, about 14.2% above its July 29 closing price of €35.15
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
July 29 - Canada's GFL Environmental raises 2026 outlook after Q2 revenue beats estimates
July 28 - Waste Management Q2 revenue rises driven by core price increases
July 29 - Clean Harbors Q2 revenue beats estimates on strong disposal and recycling demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)