Significant growth in revenue and operating results
Net income (Group share) doubled
Financial flexibility back on target
2025-2026 OUTLOOK INCORPORATING THE GEOPOLITICAL AND MACROECONOMIC SITUATION
CHANGÃ%, France--(BUSINESS WIRE)--September 10, 2025--
Regulatory News:
Séché Environnement (Paris:SCHP):
STRONG SALES MOMENTUM, OPERATIONAL AGILITY AND FINANCIAL DISCIPLINE AMID A TURBULENT MACROECONOMIC AND GEOPOLITICAL ENVIRONMENT PROACTIVE BUSINESS MONITORING: proposed acquisition of Groupe Flamme(1) ------------------------------------------------------------------------------ CONTRIBUTED REVENUE: up 15% to EUR580m EBITDA: up 34% to EUR118m or 20.4% of revenue (vs. 17.5% of revenue in H1 2024) COI: up 66% to EUR49m or 8.5% of revenue (vs. 5.9% of revenue in H1 2024) NET INCOME (GROUP SHARE): up 99% to EUR16m or 2.7% of revenue (vs. 1.6% of revenue in H1 2024) FINANCIAL LEVERAGE: 2.9x (vs. 3.2x at December 31, 2024) ------------------------------------------------------------------------------ 2025-2026 OUTLOOK incorporating external or one-off factors liable to curb short-term operating margin growth New targets for 2025(2) Contributed revenue: c. EUR1,180m (unchanged(3) ) EBITDA: between EUR250m and EUR260m (vs. EUR265-275m(3) ) COI: between EUR115m and EUR125m (vs. EUR130-140m(3) ) Financial leverage below 3x (unchanged(3) ) New targets for 2026(2) Contributed revenue: c. EUR1,240m (unchanged(3) ) EBITDA: between EUR275m and EUR285m (vs. EUR290-300m(3) ) COI: between EUR145m and EUR155m (vs. EUR160-170m(3) ) Financial leverage below 3x (unchanged(3) ) ------------------------------------------------------------------------------
At the Board of Directors meeting held on September 9, 2025 under the chairmanship of Joël Séché to approve the financial statements for the six months ended June 30, 2025, Maxime Séché, Chief Executive Officer, stated:
Despite this challenging macroeconomic and geopolitical environment, our Group demonstrated strong sales momentum, operational agility, and strict financial discipline to drive growth, boost margins, and enhance its financial flexibility.
Séché Environnement therefore posted a strong business performance. Operating results improved significantly, while net income (Group share) doubled compared to the same period last year.
Our Group generates strong free cash flow and continues to reduce debt and financial leverage in line with targets.
The resounding success of the first green bond issue has strengthened our ability to accelerate our development strategy in France and worldwide.
Quick to seize strategic opportunities, Séché Environnement has announced its intention to acquire Groupe Flamme, a long-standing, family-owned group specializing in environmental services, and the last independent operator in the French hazardous waste management market. Subject to approval by the French Competition Authority, this transaction will strengthen our Group's industrial and commercial positions in northern France and accelerate the implementation of intra-Group synergies on a European scale, thanks to our proven ability to successfully integrate acquisitions.
Our commercial, operational, and financial performance in the first half of 2025 confirms the merits of our strategy of profitable and sustainable growth worldwide.
However, the new macroeconomic and geopolitical environment has prompted Séché Environnement to take a cautious view of the second half of 2025, making allowance for external or one-off factors that could limit the expected increase in operating margins over the short term.
The low selling price of our green energy will continue to curb the profitability of our recovery businesses in France and Europe over the coming months, while upheavals in international trade are prompting reticence among some customers in France and worldwide.
However, these short-term uncertainties have not shaken my confidence in the continued growth of our activities and operating profitability over the coming years, thanks to our strong positioning and R&D efforts.
New markets are opening up -- or are poised to open up -- in France, Europe, and around the world due to public opinion and regulations that aim to limit the environmental impact of industrial activities, including those that generate "forever pollutants".
As a specialist in hazardous waste management, Séché Environnement is ready to address these significant new markets with its high value-added environmental solutions.
Driven by the commitment of more than 7,300 employees worldwide, our specialized range of environmental solutions 69% aligned with the European Green Taxonomy, and our advanced industrial capabilities, our Group will continue to sustainably combine environmental and shareholder value creation, providing increasingly effective solutions to our customers' ecological transition and sustainable development challenges."
SELECTED FINANCIAL INFORMATION
AT JUNE 30, 2025
Scope
June 30 (6 % of Gross effect Forex Organic
months) EURm 2024 % revenue 2025 revenue change $(ECO)$ effect change
----------------- ------- ---------- ------- -------- -------- ------- ------- --------
Contributed
revenue 505.1 100.0% 580.1 100.0% +14.8% 37.1 0.1 +7.5%
EBITDA 88.3 17.5% 118.2 20.4% +33.9% 15.8 0.0 +16.0%
COI 29.6 5.9% 49.1 8.5% +65.9% 11.6 0.0 +26.7%
Operating income 28.2 5.6% 49.2 8.5% +74.5% 11.4 0.0 +34.0%
Net financial
income (loss) (14.4) (2.9)% (20.6) (3.6)% +43.1% (0.4) 0.0 +40.3%
Consolidated net
income 8.7 1.7% 21.6 3.7% +148.3% 10.1 0.0 +32.2%
Net income,
Group share 8.0 1.6% 15.9 2.7% +98.8% 5.4 0.0 +31.3%
----------------- ------- ---------- ------- -------- -------- ------- ------- --------
EPS (EUR per
share) 1.02 - 2.05 - +98.8%
----------------- ------- ---------- ------- -------- --------
Recurring
operating cash
flow 76.1 15.1% 104.1 17.9% +36.8%
Net industrial
CAPEX 47.3 9.4% 49.8 8.6% +5,3%
----------------- ------- ---------- ------- -------- --------
Free operating
cash flow 66.9 13.2% 63.2 10.9% -5.5%
IFRS net debt 849.7 - 813.7 - -4.2%
Financial
leverage 3.2x - 2.9x - -9.4%
----------------- ------- ---------- ------- -------- --------
Financial leverage was calculated in accordance with bank documentation on the basis of average net financial debt of EUR782.8m (excluding non-recourse bank loans) and 12-month adjusted EBITDA of EUR272.1m as of June 30, 2025.
Definitions
Contributed revenue: reported consolidated revenue net of 1/ IFRIC 12 revenue representing investments in concession assets, which are recognized as revenue in accordance with IFRIC 12; 2/ the impact of the general tax on polluting activities (TGAP) paid by the waste producer and collected on behalf of the State by waste treatment operators. Unless stated otherwise, the changes and percentages calculated herein relate to contributed revenue.
Recurring operating cash flow: EBITDA plus dividends received from equity investments and the balance of other cash operating income and expenses (including net foreign exchange gains or losses) less cash rehabilitation and maintenance expenses for waste treatment facilities and concession assets (including MM&R major maintenance and repairs contracts).
Free operating cash flow: recurring operating cash flow less changes in working capital requirement, taxes paid, net bank interest paid (including interest on finance leases) and recurring capital expenditure (maintenance), and before development investments, financial investments, dividends and financing.
COMMENTS ON FIRST HALF 2025 REVENUE,
EARNINGS AND FINANCIAL POSITION
During the first half of 2025, Séché Environnement once again demonstrated the resilience of its growth model.
In a more uncertain macroeconomic and geopolitical environment that fueled reticence among certain industrial customers, the Group maintained buoyant growth in its main markets, driven by brisk business in service activities in France and abroad, particularly in the remediation and environmental emergency business lines.
The Group's operating profit indicators are improving in France, despite rising energy prices, and abroad, mainly due to the accretive contribution from ECO.
Net income (Group share) doubled compared to the same period last year.
Net debt has been reduced due to strong generation of free cash flow, while financial flexibility has improved in line with targets.
The successful placement of the first green bond(4) issued for the purposes of refinancing the ECO acquisition has provided additional financial resources with which to pursue the Group's strategic development.
As such, the Group is pursuing a proactive external growth strategy and has announced its intention to acquire Groupe Flamme(5) , the last independent player operating in the French hazardous waste market.
Continued buoyant organic growth -- Improvement in operating results -- Strengthened financial position
Buoyant organic growth in France and abroad
With international markets facing major geopolitical crises and increasing trade tensions fueling reticence among certain customers, the first half of 2025 confirmed the solidity of Séché Environnement's main markets in France and abroad.
Business for the period compares favorably with a sluggish first half 2024, particularly in service activities.
In addition, growth picked up between the first and second quarters, driven by "spot" contracts of exceptional scale in service activities (remediation and environmental emergencies).
First half 2025 contributed revenue(6) amounted to EUR580.1m, up 14.8% from EUR505.1m last year.
The increase includes a EUR37.1m contribution from ECO, a Singapore-based subsidiary acquired in July 2024 (scope effect).
As such, ECO proved its resilience, despite reticence among certain industrial customers and a significant depreciation in the Singapore dollar versus the euro over the period.
Meanwhile, ECO continued to ramp up its new carbon soot incineration plant, aiming for an optimized utilization rate from 2026.
The foreign exchange effect was limited to a EUR0.1m gain.
At constant scope, contributed revenue amounted to EUR543.0m, representing a significant 7.5% increase at constant exchange rates versus H1 2024:
-- In France, contributed revenue amounted to EUR378.9m, up 7.0% from
EUR354.1m last year. Organic growth in France was driven by service
activities, in particular the remediation and environmental emergency
business lines, with performance comparing favorably with the low level
of business recorded during the same period in 2024. Second quarter
performance was boosted by invoices for one-off "spot" contracts of
exceptional scale totaling around EUR20m, which accelerated growth for
the period. Circular economy activities showed a slight decline amid
prevailing reticence on the part of certain customers, which penalized
certain material recovery activities such as solvent regeneration (volume
effect), and low energy sale prices, especially electricity (price
effect). Hazard management activities continue to broadly benefit from
positive commercial effects in terms of volume or price.
-- International contributed revenue amounted to EUR164.1m, representing a
significant 8.7% increase at constant exchange rates from EUR151.0m in
the first half of 2024. In view of the relatively sluggish business
performance in the first half of 2024, particularly in service activities,
this increase reflects favorable market trends in the main geographic
regions except Spain, where the Valls Quimica (solvent regeneration)
recovery business is facing the same issues as in France and Solarca
(chemical cleaning) is experiencing significant contract postponements in
Europe and the rest of the world. International business was driven by
a strong contribution from service activities, particularly the Southern
Africa "spot" activities (environmental emergencies in South Africa) and
in Latin America (Chile, Peru), buoyed by continuing growth momentum
fueled by the implementation of major multi-year contracts signed last
year.
Significant growth in operating results
Operating results for the first half of 2025 compare favorably with last year's sluggish performance and were boosted by the accretive contribution from ECO. Excluding the scope effect, the increase in operating profitability was driven by the France scope.
-- First half 2025 EBITDA amounted to EUR118.2m representing 20.4% of
contributed revenue, up sharply by 33.8% from EUR88.3m (17.5% of
contributed revenue) last year. The EUR15.8m positive scope effect
corresponds to the solid contribution from ECO, which posted a gross
operating margin of 42.6% over revenue. The foreign exchange effect
was non-material. At constant scope, EBITDA rose significantly by
15.9% at constant exchange rates compared to the first half of 2024 to
EUR102.4m or 18.9% of contributed revenue:
-- In France, EBITDA rose 20.4% to EUR85.7m, or 22.6% of contributed
revenue, versus EUR71.2m or 20.1% of contributed revenue in H1 2024. The
segment benefited from broadly positive commercial effects (volume and
price) and the positive impact of the industrial efficiency policy and
cost-cutting plan. These trends offset the lesser contribution from
circular economy activities, particularly energy sales, which were
significantly impacted by the ongoing decline in energy sale prices.
-- International EBITDA totaled EUR16.7m or 10.2% of revenue, virtually
unchanged from the same period last year (EUR16.8m or 11.1% of revenue).
International profitability was curbed by a weaker performance from
Europe, impacted by the slowdown experienced by Spanish subsidiaries
Valls Quimica (solvent regeneration) and Solarca (chemical cleaning).
-- Current operating income (COI) amounted to EUR49.1m or 8.5% of
contributed revenue, up sharply by 66.2% from EUR29.6m (5.9% of
contributed revenue) last year. This includes an EUR11.5m positive
scope effect corresponding to the contribution from ECO, which posted a
first half 2025 current operating margin of 31.1% over revenue. The
foreign exchange effect was non-material. At constant scope, COI came
to EUR37.5m or 6.9% of contributed revenue, marking a significant
increase of 27.1% at constant exchange rates versus H1 2024 (EUR29.6m or
5.9% of contributed revenue).
-- France COI totaled EUR35.0m or 9.2% of contributed revenue, up 35.5%
versus H1 2024 (EUR25.8m or 7.3% of contributed revenue). This favorable
trend reflects the increase in France EBITDA for the period, curbed
mainly by the rise in depreciation and amortization charges resulting
from last year's capacity investments.
-- International COI amounted to EUR2.5m or 1.6% of revenue (vs. EUR3.7m
or 2.5% of revenue in H1 2024). The change reflects the lack of movement
in international EBITDA at constant scope and exchange rates and the
impact of the increase in depreciation charges related to capacity
investments incurred for the deployment of hazard management activities
in Latin America and Southern Africa.
-- Operating income rose sharply to EUR49.2m or 8.5% of contributed
revenue, up 74.5% from EUR28.2m (5.6% of revenue) last year.
Net income (Group share) doubled
The Group posted a net financial loss of EUR20.6m, versus a EUR14.4m loss in the first half of 2024. This change essentially reflects the rise in gross debt (up EUR5.3m) due to the increase in average gross financial debt over the period, while the average gross financial debt ratio fell significantly to 3.66% versus 4.17% in the first half of 2024.
After accounting for:
-- an income tax expense of EUR7.6m, versus a EUR4.7m expense last year,
representing a tax rate of 26.6%, versus 33.8% in the first half of
2024;
-- the share of profit of associates, which amounted to a EUR0.7m profit
versus a EUR0.5m loss last year, mainly reflecting the contribution from
the equity investment in ECO-Mastermelt (Singapore);
-- earnings attributable to non-controlling interests, mainly
corresponding to minority interests in Singapore-based ECO along with the
South African subsidiaries, which amounted to a EUR5.7m loss, versus a
EUR0.7m loss last year,
net income (Group share) doubled compared to the same period last year (up 98.8%) to EUR15.9m or 2.7% of contributed revenue, versus EUR8.0m or 1.6% of contributed revenue last year.
As a result, earnings per share amounted to EUR2.05, versus EUR1.02 last year.
Solid cash generation and improved financial flexibility
Over the period, the Group generated free operating cash flow(7) of EUR63.2m (vs. EUR67.5m in H1 2024).
This change mainly reflects:
-- a favorable EUR15.7m reduction in the working capital requirement (WCR),
albeit less significant than the first half 2024 reduction of EUR34.7m.
The change is mainly attributable to the rigorous policy of managing
trade receivables DSO, particularly among certain subsidiaries recently
consolidated under the France scope, and augurs well for the achievement
of the Group's target of zero change in WCR over the 2024-2026 period8;
-- astute management of industrial investments, with net disbursed
investments at 8.6% of contributed revenue, or EUR49.8m (vs. 9.4% or
EUR47.3m in H1 2024).
The free cash flow to EBITDA ratio came to 53%, significantly higher than the Group's targets ("greater than or equal to 35% of EBITDA").
The liquidity position improved considerably to EUR550.6m, versus EUR356.5m at December 31, 2024. The cash balance(9) , which includes the surplus proceeds from the March 2025 green bond placement issued to refinance the ECO acquisition, reached EUR333.9m (vs. EUR169.8m at December 31, 2024).
Net financial debt fell to EUR813.7m from EUR849.7m at December 31, 2024.
Financial leverage stood at 2.9 times EBITDA, an improvement on the previous year (3.0 times EBITDA). This figure compares favorably with leverage of 3.2 times EBITDA at December 31, 2024 under the impact of the ECO acquisition completed during the second half of 2024.
This positive development reflects the success of the Group's strict financial discipline, one of the objectives of which is to return to leverage levels less than or equal to 3 times EBITDA no later than 18 months after an acquisition.
2025-2026 OUTLOOK
ALLOWANCE FOR EXTERNAL OR ONE-OFF FACTORS LIABLE TO CURB SHORT-TERM OPERATING MARGIN GROWTH
Significant recent development: increase in the 2030 green bond tranche(10)
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