Half Year 2026 Ovh Groupe SA Earnings Call Transcript
Key Points
- OVH Groupe (OVHFF) reported a revenue of $555 million for H1 2026, with an adjusted EBITDA margin of 40.9%, marking a record since their IPO.
- The company has initiated a five-year strategic plan, including the creation of a vertical in the defense market, which aims to capture new customer segments.
- OVH Groupe (OVHFF) has launched an AI lab, starting with the acquisition of Dragon LLM, to address the growing demand for AI solutions.
- The public cloud segment showed strong growth, with a 15.1% increase like-for-like, confirming its position as the primary growth engine.
- The company has a robust financial structure with a leverage ratio of 2.6 times EBITDA and no major debt repayments due before FY 2030.
- OVH Groupe (OVHFF) experienced churn from two corporate clients, impacting the private cloud segment's growth by 1.2 percentage points.
- The company faced a global supply crisis, particularly in memory and disk components, leading to increased CapEx and impacting profitability.
- Recurring CapEx increased to 13% of revenue due to inflationary pressures, affecting overall cost management.
- The telephony and connectivity business continues to weigh on the performance of the web cloud segment.
- Despite the launch of price increases, the impact on revenue growth remains uncertain, and the company has not adjusted its guidance for FY 2026.
Ladies and gentlemen, welcome to OVH Cloud H1 Full Year 2026 Results. Today's speakers will be Oktav Klauba, Chairman and CEO of OVH Cloud, and Stephanie Benya, CFO. I now hand over to OVH Management to begin today's conference.
Thank you.
Good morning, everybody.
I'm Octave Klaba, Chairman and CEO of OVH Cloud.
Thanks for being with us this morning. Let me start with the key highlights of H1-26.
As we announced, we generated $555 million revenue and EVDA 2.27. That means that we generated around the 5.5 like-for-like graph, this H1. Our adjusted EBITDA, it's 40.9%, and that revenue recurrent rate, it's more than 100%. And we had this another red free cash flow, 42.3 million.
As the key initiative, so as I started.
As the CEO six months ago, I make my lot of interviews internally and we already started some strategic initiative in OVH to start this five-year strategic plan that we started with 26 to 30. And inside of that, we
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