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Introduction & Market Context
Veolia Environnement (EPA:VIE) released its nine-month 2025 financial results on November 6, reporting solid performance with revenue reaching €32.3 billion and EBITDA growing 5.4% at constant scope and forex. The environmental services giant's stock closed slightly down 0.65% at €28.87 following the announcement, despite the company confirming its full-year guidance.
CEO Estelle Brachlianoff emphasized the company's resilience through its diversified geographic footprint, with 80% of revenue generated outside France. "We are a multilocal group with very limited international trade," Brachlianoff noted during the earnings call, highlighting how this structure insulates the company from individual market volatility.
As shown in the following comprehensive financial overview, Veolia delivered strong operational performance across key metrics:
Quarterly Performance Highlights
Veolia reported revenue of €32,323 million for the first nine months of 2025, representing a 3.2% increase excluding energy price impacts. EBITDA rose to €5,080 million, up 5.4% at constant scope and forex, resulting in an EBITDA margin improvement of 50 basis points to 15.7%. Current EBIT increased 7.9% to €2,737 million.
The company's operational efficiency program contributed €295 million in the first nine months, putting Veolia on track to exceed its annual target of €350 million. Additionally, synergies from the Suez integration reached €73 million during the period, bringing the cumulative total to €508 million since the merger, approaching the €530 million target set for year-end 2025.
The detailed financial results table below shows strong performance across key metrics compared to the previous year:
The revenue evolution can be better understood through this waterfall chart, which illustrates how various factors contributed to the overall performance:
Similarly, the EBITDA waterfall chart demonstrates the positive impact of pricing, efficiency gains, and synergies, which more than offset negative forex impacts:
Geographic Diversification Strategy
A cornerstone of Veolia's strategy is its geographic diversification, with 80% of revenue generated internationally. This approach has proven effective in delivering resilience and growth, particularly in regions outside Europe.
The company's geographic revenue breakdown shows Europe accounting for 43%, France 20%, Rest of the World 26%, and Water Tech 11%. Notably, regions outside Europe demonstrated accelerated growth in Q3, with North America up 6.2%, Africa Middle-East up 10.5%, Latin America up 9.4%, and Asia up 5.0%.
As illustrated in the following chart, this international presence provides significant protection against national political and economic fluctuations:
CFO Emmanuelle Menning addressed concerns about forex impacts during the earnings call, explaining that the company's multilocal approach minimizes currency risks. The presentation highlighted that Veolia's business model is "largely protected against inflation" with 70% of contracts indexed, and benefits from long-term contracts averaging 11 years.
Strategic Initiatives and Capital Allocation
Veolia's "GreenUp" strategic plan focuses on three pillars: Growth, Performance, and Capital Allocation. The company has allocated approximately €2.3 billion to net M&A activities in 2025, primarily targeting its high-growth "Booster" segments after divesting about €1 billion in non-strategic assets in 2024.
A significant move was the acquisition of CDPQ's 30% minority interest in Water Technologies for €1.5 billion, which is expected to deliver €90 million in cost synergies by 2027. The company also completed six tuck-in acquisitions in the Hazardous Waste sector across the US, Japan, and Brazil for a combined enterprise value of approximately €0.4 billion.
The following slide illustrates the strong performance of Veolia's "Booster" segments, which are delivering higher growth rates than the company average:
Veolia also highlighted several strategic projects, including the first "hybrid" Municipal & Industrial Desalination plant in Chile and partnerships with major energy companies like Saudi Aramco and TotalEnergies for innovative environmental solutions.
The company's net financial debt stood at €19.9 billion as of September 30, 2025, compared to €17.8 billion at the end of 2024. This increase primarily reflects the strategic investments made during the period, as shown in this waterfall chart:
Forward-Looking Statements
Veolia confirmed its 2025 guidance, targeting continued solid organic revenue growth, EBITDA growth of 5-6%, efficiency gains exceeding €350 million, and current net income group share growth of approximately 9% at constant forex. The company expects to maintain its leverage ratio below 3x and plans to grow dividends in line with current EPS.
Looking further ahead, Veolia remains committed to its GreenUp plan targets, which include reaching €8 billion in EBITDA by 2027 and delivering a compound annual growth rate of approximately 10% in current net income from 2023 to 2027.
The company also announced an upcoming thematic event focused on "New Urban Energy: Decarbonising heat, creating value," scheduled for November 25, 2025, in Poland, where it will detail its district heating decarbonization program, which is expected to deliver double-digit internal rates of return.
Brachlianoff expressed "strong confidence to deliver 2025 and GreenUp plan" objectives, emphasizing the company's resilient business model and strategic positioning in growing environmental markets.
Full presentation:
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