Dassault Systemes confirms 2025 outlook, implies lower margins on FX hit
The logo of Dassault Systemes is seen at the company's booth, at the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
French software maker Dassault Systemes confirmed its 2025 outlook, but implied a lower operating margin for the year as foreign exchange headwinds weighed on its annual forecast.
The group, which sells software to automakers, plane makers and industrial firms across the world, now forecast 2025 operating margin between 32.2 per cent and 32.4 per cent, compared with its previous expectation of 32.3 per cent-36.6 per cent.
The company confirmed its full-year targets but updated its currency assumptions for the second half of the year, chief financial officer Rouven Bergmann told journalists.
The group now expects a rate of $1.17 per euro for the third quarter of 2025, bringing its full-year assumption to an average of $1.13 per euro, based on the actual rates from the first half and the revised forecast for the remainder of the year.
In its first-quarter results in April, Dassault Systemes had assumed an exchange rate of $1.10 per euro for the second quarter and $1.09 per euro for full-year 2025.
Its total revenue climbed to 1.52 billion euros ($1.79 billion) in the second quarter, while analysts polled by LSEG expected 1.55 billion euros.
Hit by a prolonged slowdown in the global auto industry, Dassault Systemes extended the target timeframe of its medium-term forecast by one year and cut its revenue growth outlook for the same period in June.
In April, the company lowered its 2025 operating margin growth forecast, citing market volatility related to U.S. President Donald Trump's tariffs. It had also cut 2024 forecasts twice in the second half of last year.
Software revenue, which includes licence and subscription revenues, rose 6 per cent to 1.37 billion euros in the reported quarter.
Revenue from its flagship software platform 3DEXPERIENCE, which offers 3D modelling, data management and project management tools, jumped to 20 per cent.
($1 = 0.8493 euros)
