Seche Environnement H1FY26 Results: EBITDA up 8.5%, net profit down 23%
- Contributed revenue rose 4.8% YoY to €607.8m, driven by international acquisitions
- EBITDA grew 8.5% to €128.3m, with international segment posting 11.8% organic growth
- Net income fell 23.3% to €12.2m due to €4m in non-recurring acquisition costs
- Free operating cash flow increased 14.1% to €72.1m, maintaining strong conversion
- Full-year 2026 targets confirmed: revenue €1,230-1,260m and EBITDA €260-270m
*this image is generated using AI for illustrative purposes only.
Seche Environnement (Euronext: SCHP) reported a 4.8% rise in contributed revenue to €607.8 million for the first half of 2026, driven by international acquisitions and organic growth abroad.
EBITDA grew 8.5% year-on-year to €128.3 million, reflecting strong performance in Chile and Italy. However, net income attributable to the group fell 23.3% to €12.2 million, impacted by non-recurring charges related to acquisitions and a performance plan.
Financial Performance Overview
The group confirmed its full-year 2026 targets, projecting contributed revenue between €1,230 million and €1,260 million and EBITDA between €260 million and €270 million. Free operating cash flow rose 14.1% to €72.1 million, supporting financial flexibility despite increased leverage from recent deals.
| Metric | H1 2025 (€m) | H1 2026 (€m) | YoY Change |
|---|---|---|---|
| Contributed Revenue | 580.1 | 607.8 | +4.8% |
| EBITDA | 118.2 | 128.3 | +8.5% |
| Operating Income | 49.2 | 45.2 | -8.1% |
| Net Income (Group Share) | 15.9 | 12.2 | -23.3% |
| Free Operating Cash Flow | 63.2 | 72.1 | +14.1% |
Regional Divergence and Acquisition Impact
International operations drove the top-line growth, with international revenue rising to €261.7 million from €201.2 million in the prior year period. This included significant contributions from Hidronor in Chile (€24.8 million) and La Filippa in Italy (€11.0 million), acquired early in the year. At constant scope, international organic growth stood at 11.8%.
In contrast, domestic French revenue declined 8.7% to €346.1 million, weighed down by lower volumes in services activities following exceptional contracts in the first half of 2025 and temporary disruptions in energy recovery units.
What the Numbers Show
The divergence between EBITDA growth and net income decline highlights the impact of integration costs. While EBITDA expanded by €10.1 million, operating income contracted by €4.0 million due to €4.0 million in non-recurring charges linked to business combinations and the performance plan. This suggests that underlying operational profitability improved, but bottom-line results were temporarily suppressed by strategic execution costs.
Balance Sheet and Cash Flow
Net financial debt increased to €757.4 million from €548.8 million at the end of 2025, primarily due to the €224 million impact of the Chile and Italy acquisitions. Consequently, the IFRS financial leverage ratio rose to 2.9x EBITDA from 2.3x. The company maintains a target of keeping leverage below 3.0x EBITDA.
Free cash flow generation remained robust, with the free cash flow to EBITDA ratio reaching 56% compared to 53% in the prior year. This was supported by a €13.7 million reduction in working capital requirement and disciplined industrial capex of €46.9 million.
How does Seche Environnement plan to offset the 8.7% decline in domestic French revenue amidst the loss of exceptional contracts and operational disruptions?
What specific integration milestones must Hidronor and La Filippa achieve to normalize EBITDA margins and reduce non-recurring charges in the second half of 2026?
Given the leverage ratio approaching the 3.0x target, will Seche Environnement prioritize debt repayment over further M&A activity for the remainder of the year?
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