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Edenred: Edenred's 2025 Results: Strong Commercial and Operating Performance

Edenred delivered a strong financial performance in 2025, with operating revenue growing 6.2% like-for-like, driven by a 9.1% growth excluding the impact of the Italian regulation. The company's EBITDA grew 11.2% like-for-like, with a 16.5% growth excluding the Italian regulation, resulting in an EBITDA margin of 41.4%, an increase of 280 basis points. The adjusted EPS reached EUR 2.59, a 10% increase versus 2024. The company's total revenue was EUR 2.961 billion, growing 7.6% like-for-like, excluding Italian regulatory changes.

EDEN.PA

EUR 18.005

-4.84%

A-Score: 4.9/10

Publication date: February 24, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Earnings Surpass Guidance: Edenred exceeded 2025 guidance with 11.2% like-for-like EBITDA growth (16.5% ex-Italy) and 34% free cash flow increase.
  • Margin Expansion & Efficiency: EBITDA margin rose 280 bps to 41.4%, driven by 1.3% like-for-like OpEx growth under the "Fit for Growth" program.
  • Shareholder Returns Strengthened: Dividend up 10% to EUR 1.33/share, net debt down 31% to EUR 1.2B, and leverage ratio improved to 0.9x.
  • Strategic Growth Levers: 30% user base expansion in 2025; 60% of future growth from new clients, 30-40% from service enrichment (e.g., 60% revenue growth via RB integration).
  • 2026 Rebased, 2027-2028 Recovery: 2026 guidance at -8% to -12% (due to Brazil/Italy risks), but 8-12% EBITDA growth expected by 2028 with sustained free cash flow conversion to 65%+.

Segmental Performance

Edenred's growth was driven by its Mobility segment, which grew 11.7%, and its Benefits & Engagement segment, which grew 5.9%. The company's Rest of the World segment grew 16.8%, representing 30% of the company's operating revenue. The company's diversified portfolio of solutions, with Benefits & Engagement representing 64% of its total operating revenue, contributed to its strong performance.

Operational Efficiency

Edenred's Fit for Growth program enabled it to achieve quick wins, including more workforce efficiency, renegotiated supplier contracts, and IT internalization, resulting in an OpEx like-for-like growth of 1.3% in 2025. As Bertrand Dumazy stated, "2025 was a good year to work on efficiency, with a 1.3% OpEx growth, mainly driven by payroll, cost of sales, and other charges."

Guidance and Outlook

Edenred's guidance for 2026 is based on a worst-case legal scenario related to the Brazilian presidential decree, which could lead to a decrease of 8-12% in the company's operating revenue. However, the company expects to see renewed sustainable and profitable growth in 2027 and 2028, with an EBITDA like-for-like growth of 8-12%. The company's strong balance sheet, with a leverage ratio of 0.9x, allows it to invest in organic growth, data and AI, and focused M&A opportunities.

Valuation

Edenred's current valuation metrics, including a P/E Ratio of 8.91, EV/EBITDA of 6.96, and Dividend Yield of 6.62%, suggest that the company's strong financial performance and growth prospects are reasonably priced in. However, the company's ROE of -48.99% and Net Debt / EBITDA of 3.26x highlight areas for improvement.

Edenred's A-Score