Half Year 2025 Capgemini SE Earnings Call Transcript
Key Points
- Capgemini SE (CAPMF) achieved a revenue of EUR11.107 billion in H1 2025, marking a slight year-on-year increase of 0.2% at constant currency.
- The company demonstrated resilience with a stable operating margin of 12.4% of revenues, despite challenging market conditions.
- Bookings totaled EUR11.993 billion, reflecting a year-on-year growth of 2.1%, indicating solid commercial momentum.
- Capgemini SE (CAPMF) secured strategic contracts in cloud and AI, reinforcing its position as a trusted adviser and strategic partner.
- The company announced a new multi-year share buyback program of EUR2 billion, funded by organic free cash flow, indicating strong financial health.
- Net profit group share decreased to EUR724 million, down from EUR835 million in H1 last year, representing a 13% decline.
- The manufacturing sector remained weak, with a 4% year-on-year decline, impacting overall group growth.
- Revenue in France and the rest of Europe declined by 5% and 2.3%, respectively, due to lower activity in manufacturing and consumer goods sectors.
- The effective tax rate decreased due to a non-cash one-off tax item, which will not repeat in H2, potentially impacting future tax expenses.
- Gross margin decreased by 30 basis points year on year, reflecting the impact of a competitive market and pricing pressures.
Good day, and thank you for standing by. Welcome to Capgemini H1 2025 results webcast and conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to end the conference over to your speaker today, Mr. Aiman Ezzat, CEO. Sir, please go ahead.
Thank you. Good morning, and thank you for joining us for this H1 2025 results call. I'll be joined today by our CFO, Nive Bhagat. Our performance continues to improve through the first half of the year and Q2 slightly exceeded expectations. In the volatile economic environment and persistently soft demand, we have demonstrated the strong resilience and adaptability in navigating these challenging conditions.
We see the benefits of the actions announced in Q3 2024. The revenue growth rate gradually improved quarter after quarter, and the group returned to positive constant currency growth to Q2 at plus 0.7% year on year. For H1 2025, revenue reached
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