Avolta (AVOL) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 turnover reached CHF 3.05 billion, up 8.2% at constant exchange rates, with organic growth of 5.3% (6.5% excluding leap year effect); April YTD organic growth was 5.7% (6.6% excluding leap year effect).

• CORE EBITDA reached CHF 196 million, up 16.3% year-over-year, with a margin of 6.4% (+37 bps YoY), at the upper end of guidance.

• Leverage improved to 2.18x from 2.55x YoY; quarter-end liquidity stood at CHF 2,017 million.

• Strong performance in EMEA and Latin America, solid in Asia Pacific, and weaker in North America due to flat or negative passenger numbers.

• Diversification across geographies and business lines, along with strategic growth projects and digital transformation, supported resilience and growth.

Financial highlights

• Turnover up 8.2% at current exchange rates in Q1; April YTD growth at 8.5%.

• CORE EBITDA CHF 196 million, margin 6.4% (+37 bps YoY).

• Equity-free cash flow at CHF -104 million in Q1, consistent with seasonal patterns.

• Dividend increased by 43% to CHF 1 per share; CHF 49 million of CHF 200 million share buyback completed in Q1.

• Net debt at CHF 2,820 million; strong liquidity of CHF 2,017 million.

Outlook and guidance

• Full-year organic growth expected between 5–7%, with EBITDA margin expansion of 20–40 bps and equity-free cash flow conversion up 100–150 bps.

• Confidence in meeting 2025 guidance and medium-term targets, even if North America remains flat; upside possible if U.S. recovers.

• Currency translation impact for 2025 expected at 0% to -1%.

• Capital allocation priorities: growth investment, deleveraging, progressive dividend, and share buybacks.