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Investing.com -- Alten’s third-quarter revenue reached €992 million, representing a 4.5% organic decline, which was slightly better than the expected 5% drop and an improvement from the second quarter’s 5.7% decrease. Shares rose 4.5% today.
The engineering and technology consulting company saw regional performance remain largely consistent with previous quarters, though areas with the strongest declines showed slight improvement. Germany fell 14% while Scandinavia dropped 19%. In contrast, Italy and Spain continued to grow at 6% and 3% respectively. France declined 3.4%, still affected by weakness in the automotive sector.
For the first nine months of 2025, Alten’s sales decreased 5.2% organically, with the automotive segment experiencing a significant 16% contraction.
The company’s headcount decreased slightly by 240 employees during the quarter, though the number of engineers being billed appears to be stabilizing sequentially. The company will monitor projects ending in late 2025 to better assess year-over-year trends for January 2026, with improved visibility expected when Alten reports its full-year sales on January 29.
Alten announced two acquisitions: an embedded software company in India generating €5 million in revenue and a digital transformation firm in Spain with €19 million in revenue. The company is considering approximately 15 additional acquisitions across various regions including India, China, France, Germany, and North America.
Management confirmed its full-year sales guidance of a 5.2% to 5.5% decline, with results likely to reach the higher end of this range as the fourth quarter is expected to see around a 5% decrease. For 2026, the company anticipates relatively flat organic trends, with sales contraction expected in the first quarter.
Alten aims to return to a 10% operating margin once revenues reaccelerate, potentially reaching this target in 2027 if sales recover during 2026.
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