France's Elis Q3 revenue up 6.1% on contract rollouts and acquisitions

Overview

• France-based circular services provider's Q3 2026 revenue rose 6.1% yr/yr, with 3.5% organic growth

• Company confirmed its 2026 financial objectives, including margin and free cash flow growth

• Q3 growth driven by contract rollouts and acquisitions; France impacted by wildfires, Mexico by healthcare volume shifts

Outlook

• Elis expects 2026 organic revenue growth to be slightly below 2025's 3.8%

• Company expects adjusted EBITDA and EBIT margins to improve slightly in 2026

• Free cash flow expected to grow at a mid-single-digit rate in 2026

Result Drivers

• SALES FORCE INVESTMENTS - Co said increased sales force headcount and improved sales tools drove strong commercial momentum

• CONTRACT ROLLOUTS - Gradual rollout of major contracts signed earlier in the yr contributed to improved organic growth

• ACQUISITIONS - Recent acquisitions contributed 1.5 percentage points to Q3 revenue growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Elis SA is €30.00, about 35.3% above its October 27 closing price of €22.18

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 28 - Higher prices lift Danone third-quarter sales

• Oct 27 - UK's Reckitt Q3 like-for-like revenue rises 3.2% on Emerging Markets growth

• Oct 27 - Finland's Vaisala Q3 revenue rises, lifts 2026 outlook on strong industrial demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)