Sopra Steria Group (SOP) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenue was €1,315.8 million, down 2.9% organically year-over-year, with negative currency impact and a small positive scope effect from the Aurexia acquisition.

• France revenue stabilized, with improvement in aeronautics and defense sectors.

• UK revenue declined 9.5% organically due to a delayed defense program ramp-up, but growth is expected to rebound in Q4.

• Europe saw a 3.4% organic revenue decline, with growth in Italy, Spain, and Switzerland, but contractions in Scandinavia, Germany, and Benelux.

• Solutions unit posted a slight 0.4% organic decline, with positive growth in HR and specialized lending solutions.

Financial highlights

• 9M 2025 revenue was €4,159.5 million, down 3.5% organically from 9M 2024.

• France contributed €574.9 million in Q3 2025, nearly flat year-over-year.

• UK revenue was €211.5 million in Q3 2025, down from €233.7 million in Q3 2024.

• Solutions unit revenue was €77.4 million in Q3 2025, down slightly from €77.7 million.

• Group headcount increased sequentially, mainly in France and India, reflecting ramp-up for new contracts, with annual contraction slowing.

Outlook and guidance

• Q4 expected to show low single-digit positive growth at group level, driven by recovery in France and the UK, with continued improvement in aeronautics, financial services, and public sector.

• 2025 annual targets confirmed: organic revenue growth between -2.5% and +0.5%, operating margin on business activity between 9.3% and 9.8%, and free cash flow between 5% and 7% of revenue, likely at the lower end of the range.

• No significant impact from the political situation in France expected for Q4; potential delays in public sector contracts in 2026 if budget approval is late.