Atos, the France-based IT company, has revised its financial outlook amid a challenging period for the firm. The company has downgraded its revenue forecast for this year and future years due to a turbulent business environment and delays in client contracts.
Following a significant restructuring deal with bondholders and banks in June, Atos has been grappling with financial instability. The updated forecast estimates full-year 2024 revenue at €9.7 billion, down €9.8 billion from previous projections. Despite these difficulties, Atos is optimistic about achieving positive, though reduced, cash generation by 2026.
The operating margin of the group is expected to be 2.4% of returns this year, a decrease from the previously targeted 2.9%.
The leverage ratio of the company is now anticipated to fall below a multiple of 2.0 by 2027, later than the previously set deadline of the end of 2026. Atos has also downwardly revised its 2027 revenue and operating margin targets.
A court hearing to approve the accelerated safeguard plan is scheduled for October 15, said Atos.
Atos' restructuring plan is expected to outcome in existing shareholders’ massive dilution, which is poised to be implemented after the court’s approval. Notably, several debt issuance and capital increases are planned to be executed from November 2024 to January 2025.
Last month, the company reported a broader first-half operating loss, quoting lower sales and impairment charges in America and a downturn in public-sector orders in Europe.
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