Teleperformance SE

Latest Results (06.01.2026):

Teleperformance SE — Q2 2025 (reported as part of First‑Half 2025 results): Group revenue for H1 2025 was €5,116m (+1.5% like‑for‑like) with Q2 revenue €2,503m (+1.3% LFL). Core Services accelerated in Q2 to +3.5% LFL (Europe, MEA & APAC +5.7% LFL). H1 recurring EBITA was €697m (13.6% reported; 13.9% at constant FX), net profit — group share €249m (diluted EPS €4.19), net free cash flow €259m and net debt €4,482m. Specialized Services was hit by the non‑renewal of a major visa contract (TLScontact); excluding that impact Specialized Services would be +3.0% LFL in H1. Management updated 2025 targets (LFL growth at the lower end of +2%–+4%, recurring EBITA margin 15–15.1% at constant FX, net free cash flow ≈€1bn ex‑NR) and is executing its ‘Future Forward’ AI plan including TP.ai and several AI partnerships and tuck‑ins.

Revenue & growth

H1 2025 revenue €5,116m, +1.5% LFL (reported +0.8%); Q2 2025 €2,503m, +1.3% LFL. Core Services H1 +2.9% LFL with Q2 acceleration to +3.5% LFL; Europe, MEA & Asia‑Pacific the strongest region (+5.7% LFL in Q2). Scope added €89m (ZP); currency headwinds were ~‑€121m, and IAS29 hyperinflation had a small negative effect (-0.2% on LFL).

Profitability

H1 recurring EBITA before non‑recurring items €697m (13.6% of revenue reported; 13.9% excl. FX effects). Core Services EBITA margin improved to 11.1%; Specialized Services margin fell (27.7%) reflecting mix and the TLScontact loss but showed sequential improvement in Q2. EBIT €530m (+5.4% y/y). Net profit — group share fell to €249m from €291m, diluted EPS €4.19.

Cash flow & balance sheet

Net free cash flow H1 €259m (vs €448m in H1 2024) mainly due to higher cash tax (€205m), working capital outflow (€122m), higher investments and AI partnership spend. Net debt rose to €4,482m (from €3,890m at end‑2024). H1 shareholder payouts and programs: €248m dividends paid and ~€30m of the €100m share buyback executed (buyback nearly complete by end‑July).

Segment performance

Core Services: H1 +2.9% LFL, Q2 +3.5% LFL driven by client retention, new business and AI/back‑office ramp ups. Specialized Services: H1 reported -7.0% LFL due to a large visa contract non‑renewal; adjusted excluding that contract Specialized Services would be +3.0% LFL. ZP (acquired Feb 1) contributed scope and grew double‑digit post‑acquisition.

Outlook and guidance update

2025 objectives updated to reflect FX and Specialized Services trends: LFL revenue growth at the lower end of the prior +2%–+4% range; recurring EBITA margin 15.0%–15.1% at constant exchange rates; strong net free cash flow of around €1bn excluding non‑recurring items. Mid‑term (2026–2028) targets include returning to sustained mid‑single digit LFL growth (4–6% in 2028), ~15.5% recurring EBITA margin in 2028 and cumulative net free cash flow of ~€3bn (2026–2028).

Strategy & AI investments

‘Future Forward’ plan is being implemented: rollout of TP.ai platform, an AI partnership program with up to €100m in planned 2025 investments, acquisitions (AgentsOnly, ZP) and 250+ AI projects launched in H1. Training continues (65,000+ AI/EI training completions by June 30, 2025) to blend AI with human expertise.

Main near‑term risks / drivers to watch

Key drivers: currency volatility (significant negative FX impact in Q2), Specialized Services client renewals (TLScontact impact), cash tax timing and working capital. Management cites immediate cost adjustments and synergies (Majorel, ZP) as mitigation and expects stronger cash conversion in H2 2025.