Orange (ORA) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong financial results, with revenues up 3.5% year-over-year to €10.1 billion and EBITDAAL up 6.6%, reflecting robust operational execution and positive non-recurring wholesale effects in France.

• Growth was led by double-digit expansion in Africa & Middle East (+12.7%), and solid performances in France (+2.3%) and Europe (+2.2%).

• The new strategic plan, Trust the Future, is underway, focusing on customer intimacy, innovative growth, and operational excellence.

• Exclusive negotiations are ongoing for the acquisition of SFR in France, with Orange's share at 27% of a €20.35 billion enterprise value; transaction structure shifted to a share deal for faster execution.

• MasOrange transaction in Spain is set to close in Q2 2026, with antitrust approval received.

Financial highlights

• Group revenues rose 3.5% year-over-year to €10,095 million, driven by retail growth across all geographies and positive wholesale non-recurring items in France.

• EBITDAAL increased by 6.6% to €2,601 million, reflecting retail services growth, efficiency gains, and wholesale non-recurring items; margin improved by 0.8pt to 25.8%.

• Excluding non-recurring items, underlying revenue growth was 2.5% and EBITDAAL growth was 3.5%.

• eCapEx totaled €1,542 million (15.3% of revenues), in line with guidance.

• EBITDAAL-eCapEx reached €1,059 million, up 6.3% year-over-year.

Outlook and guidance

• Upgraded 2026 EBITDAAL growth guidance from around 3% to above 3%.

• eCapEx/revenues ratio targeted at ~15%.

• Organic cash flow expected to reach ~€4 billion.

• Dividend of €0.79 per share proposed for 2026, payable in 2027, with a 2025 dividend of €0.75/share.

• Net debt/EBITDAAL targeted at around 2x in the medium term, with a temporary increase possible upon MasOrange consolidation.