Aeronautics2026 Half-Year Results
Return to organic growth
Strong increase in earnings and free cash flow
2026 targets revised upwards
Activity at end of June 2026: +1.2%
In the first half, activity growth stood at +1.2%: +4.4% in France and -0.5% outside France.
At constant scope and exchange rates, growth was +1.6% (+3.3% in France and +0.8% outside France).
ALTEN returned to organic growth in the second quarter of 2026, driven by more dynamic activity than anticipated.
Activity improved across all geographies, with most delivering organic growth, including Germany. Only Benelux and the Nordics were still down by more than 5%. Activity growth accelerated in Aerospace, Defence / Security / Naval, Rail, and, to a lesser extent, Energy. The decline slowed in the other sectors.
operating margin on activity: 8.9% of revenue
Operating Profit on Activity amounted to €187.3 million, up 23% compared with June 2025.
The operating margin on activity therefore rose sharply, from 7.3% of revenue in June 2025 to 8.9% in June 2026. It increased both in France and internationally.
Improved margins in several geographies that faced difficulties last year, productivity gains on projects, and the significant reduction in SG&A initiated several half-years ago enabled the Group’s operating margin on activity to increase sharply.
operating profit: 7.5% of revenue
Operating profit amounted to €158.3 million, up 27% compared with the first half of 2025 (€124.7 million). It includes €12.3 million in share-based payments, €6.7 million in amortisation of acquisition-related intangible assets, €12.5 million in non-recurring costs (mainly restructuring costs and acquisition fees), and a €2.6 million disposal gain.
Net income, Group share: 5.4% of revenue
After taking into account the financial result (+€3.2 million), the income tax expense (€47.7 million), and the share of profit or loss of equity-accounted companies (-€0.1 million), net income, Group share, amounted to €113.8 million, representing 5.4% of revenue, up 38% compared with June 2025.
NET CASH: €313M / GEARING: -14%
Cash flow from operations before the cost of net financial debt and tax (excluding IFRS 16) amounted to €180.7 million (8.6% of revenue). Working capital requirements increased by €31.6 million as a result of organic growth and the seasonal increase in DSO.
Taxes paid amounted to €36.8 million, while Capex remained low (€8.1 million, or 0.4% of revenue).
Consequently, free cash flow amounted to €104.3 million, or 4.9% of revenue, a significant increase of 33%. After taking into account net financial investments (€73 million), dividends paid (€51.5 million), the share buyback programme (€65 million), and other financing flows (+€7.9 million), net cash stood at €313 million at end-June 2026.
ALTEN therefore has significant investment capacity (gearing: -14.0%).
external growth:
2 acquisitions
- A company specialising in IT Services in France (90% of revenue) – (revenue: €68 million, 470 consultants).
- A company specialising in automotive engineering (mechanical design & software-defined) in Germany (revenue: €22 million, 230 consultants).
1 disposal
- An international company specialising in Life Sciences – (revenue: €11.5 million, 61 consultants).
2026 outlook:
This half-year confirmed the improvement in activity observed since the final quarter of 2025, particularly in the Aerospace & Defence sectors, which recorded strong growth.
Although the macroeconomic and geopolitical environment remains uncertain, assuming conditions remain unchanged, ALTEN is once again raising its outlook for 2026. Organic growth at constant scope and exchange rates is expected to be between 1.7% and 1.9%.
The operating margin on activity will be higher than in 2025 and is expected to be approximately 9.2% in 2026.
Next publication: 27 October after market close: Q3 2026 activity