Atos aims for sales growth, profitability with "Genesis" plan after 2024 reset

Published 14/05/2025, 11:10
© Reuters

Investing.com -- Atos Group (EPA:ATOS) announced a four-year transformation plan on Wednesday to return to sales growth and restore profitability following its financial restructuring in 2024. 

The strategy, named “Genesis,” targets revenue of €9 billion to €10 billion and an operating margin of around 10% by 2028.

The company said it will prioritize debt reduction and selective acquisitions, with no dividends or share buybacks expected before 2028.

For 2025, Atos expects revenue of about €8.5 billion, down from €9.6 billion in 2024 due to portfolio changes and contract reviews. 

Operating margin is projected to improve to 4%, from 2% last year. Net cash change before debt repayment is expected to be negative €350 million.

Atos forecasts a return to organic revenue growth and positive cash generation in 2026. Between 2025 and 2028, revenue is projected to grow at a compound annual rate of 5% to 7%. Strategic acquisitions could bring total revenue closer to €10 billion.

The company will simplify its operations under two main brands: Atos, focused on services, and Eviden, covering product lines.

It plans to exit several non-core markets and concentrate on six regional hubs, including France, Germany, the U.K., and North America.

A cost-cutting program is underway, targeting a leaner structure through increased offshoring, stricter contract management, and reduced general expenses. Atos aims to bring general and administrative costs down to 5% of revenue by 2028.

The company will invest €500 million in research and development and €100 million in technology partnerships over four years. A newly formed Data and AI business unit will expand staffing fivefold by 2028.

On asset sales, discussions continue with the French state for a possible acquisition of Atos’ Advanced Computing business. The non-binding offer values the unit at up to €625 million. Other sale processes are on hold.

Atos reported liquidity of €2 billion as of March 31 and has no debt maturing before 2029.

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