The cost base restructuring is starting to bear fruit, resulting in a 15.4% increase in the operating margin to €113 million (2.8% of revenue). Total revenue declined organically by 17.4% to €4.02 billion, a decline Atos said it had anticipated due to contract terminations and slow business activity in 2024.
Commercially, there’s a positive trend. The book-to-bill ratio improved by 10 points to 83%. The company closed 11 large multi-year contracts, a significant increase compared to the 5 contracts in the first half of 2024. The strategic deal pipeline grew by €1.5 billion in the second quarter.
In addition, a significant strategic step has been taken with the signing of a purchase agreement with the French government for the sale of the Advanced Computing activities. According to CEO Philippe Salle, the company is confident it will achieve its objectives.
Philippe Salle, Atos Group Chairman of the Board of Directors and Chief Executive Officer, said, “In a challenging environment, I am very encouraged by the determination of our teams in rolling-out the Genesis transformation plan with no delay. The voluntary optimization of the Group cost base is already starting to show initial benefits as shown through our half-year results: the operating margin is improving by over 15% year-on-year, a positive momentum which we intend to pursue. Our limited cash consumption is reflecting our disciplined approach to cash management, and we notice a sheer increase in enthusiasm among our customers towards the strategic refocusing of the Group.
We also reached a new significant milestone towards the sale of our Advanced Computing activities with the signature of a share purchase agreement with the French State.
We are looking ahead to the rest of the year and beyond with confidence and a single focus: executing on our strategy. We remain strongly committed to our 2025 targets and our long-term financial trajectory.”
