Elis Shares Slip 5.3% After H1 Results

Elis Shares Slip 5.3% After H1 Results

Elis (EPA:ELIS) saw its share price decline 5.3% on Thursday, 30 July 2026, after publishing its first‑half 2026 results and reiterating its full‑year guidance, which now targets organic sales growth of approximately 3.5% for fiscal 2026, a modest downward revision from earlier expectations.

The company reported first‑half revenue of €2.46 billion, delivering organic sales growth of 3.2%, in line with consensus estimates. EBITDA amounted to €854 million, corresponding to an overall margin of 34.7%, also matching market expectations.

Regionally, Southern Europe posted 5.7% organic sales growth, slightly above the 5.5% consensus, while Latin America achieved 8.0% growth, beating the 7.8% consensus but lagging the 9.5% growth recorded in the first quarter. In Mexico, a reorganisation of the federal healthcare system caused the loss of roughly half the volumes under a public‑healthcare contract, translating to an estimated revenue impact of €14 million, less than 0.3% of the projected fiscal 2026 revenue.

Profitability varied across geographies. In France, the EBITDA margin expanded by 90 basis points to 42.7%, surpassing the consensus of 41.9%. Scandinavia’s margin improved by 10 basis points to 34.5% despite muted revenue growth.

Free cash flow turned negative €30.1 million for the first half, compared with a positive €31 million in the same period of 2025 and below the €25 million consensus forecast. The shortfall was attributed to higher working‑capital outflows and a seasonal inventory build‑up ahead of the summer season, with management expecting cash conversion to improve in the second half.

During the first half, Elis completed its €500 million share‑buyback programme and, as of 28 July, held 18.3 million treasury shares. Net financial leverage stood at 2.09 times. The company also finalized three small acquisitions in Germany, Switzerland and Spain, which together contributed roughly 1.1% to revenue growth.