France's Atos restores annual guidance after restructuring, sets 2028 targets
The logo of Atos is seen on a company building in Nantes, France, March 11, 2022. REUTERS/Stephane Mahe
Atos unveiled a four-year plan focused on cost cutting and a simpler structure and issued an annual revenue guidance on Wednesday, after the French IT company suspended financial forecasts last year due to its restructuring.
Once seen as a European tech champion with a market value of more than 10 billion euros at its highest, Atos emerged from financial troubles in 2024 thanks to a restructuring agreement with its creditors.
It had piled up 4.8 billion euros of debt in recent years, owing to a botched split project and a string of costly acquisitions.
Atos expects to generate 8.5 billion euros ($9.6 billion) in revenue this year, an 11 per cent drop from 2024, citing voluntary contract reviews and low business traction prior to the completion of its rescue plan.
It also expects its operating margin to rise to 4 per cent in 2025.
The company expects 2028 revenue to come back to pre-restructuring levels of up to 10 billion euros, driven by "disciplined" mergers and acquisitions, with the operating margin improving to 10 per cent.
Atos' shares fell 5.7 per cent to 39.60 euros per share by 0754 GMT, translating to a market value of 747 million euros.
Philippe Salle, Atos' seventh CEO since 2021, is due to outline his plan called "Genesis" at a Capital Markets Day event in Paris later on Wednesday.
Under the new strategy, Atos will simplify its governance, exit several international markets and complete its asset disposals while creating a new business line for data and artificial intelligence.
It also plans to reduce general and administrative costs to about 5 per cent of revenues by 2028 through job cuts,
The group said it would invest 500 million euros in research and development and 100 million euros in start-ups.
Atos builds and owns the supercomputers used for virtual nuclear tests in France.
Negotiations with the French state for a potential acquisition of Atos' advanced computing activities - crucial for national security - are ongoing, the company said.
The sale process for its mission critical systems and cybersecurity products businesses has instead been put on hold.
($1 = 0.8900 euros)
