Econocom maintains 2026 outlook despite challenging H1

Econocom has reported lower first-half revenue and profitability as challenging market conditions weighed on its Technology Management & Financing (TMF) business, but the group has reaffirmed its full-year guidance as it continues to execute its strategic transformation programme.

The European digital services and financing specialist generated revenue of €1.40 billion during the first six months of 2026, down 3.7% year-on-year (5.3% organically), reflecting lower activity in its TMF division following an exceptionally strong first half in 2025, when it benefited from several large, high-margin non-IT transactions.

Operating profit fell to €30.9 million, compared with €41.0 million in the same period last year, largely due to the reduced contribution from TMF, while consolidated net income improved slightly to €1.3 million, despite the final losses associated with the disposal of Synertrade, which was completed on 31 March.

Despite the more difficult trading environment, Econocom said it continued to make steady progress with its “One Econocom” transformation strategy, repositioning the business around four strategic growth areas: Audiovisual Solutions, Financing Solutions, Infrastructure and Workplace.

Angel Benguigui, Chief Executive Officer of Econocom Group, said: “During the first half of 2026, marked by supply-chain tensions and the current geopolitical developments, Econocom continued to execute its transformation with discipline and consistency.

“We further progressed on the One Econocom plan, notably by pivoting our organisation toward higher value offers structured around our four strategic domains, while maintaining a strong focus on operational efficiency. Supported by the commitment of our teams, the diversity of our portfolio – across activities, geographies and clientele – continues to underpin the Group’s resilience through a difficult market.”

Mixed performance across business divisions

Technology Management & Financing generated revenue of €464.8 million, a decline of 24.5% compared with the record first half of 2025, as the group adopted a more cautious approach to own-book financing transactions to preserve its balance sheet. Excluding own-book deals, revenue declined by a more modest 8%.

The division’s operating profit fell to €13.4 million, compared with €25.7 million a year earlier.

In contrast, Products & Solutions delivered strong growth, with revenue increasing 15.8% to €665.9 million, supported by robust demand across Europe, customer purchasing ahead of anticipated chip shortages and the contribution from recent acquisitions. Operating profit rose to €9.8 million, up from €5.7 million in the prior year.

Services revenue remained broadly stable at €268.6 million, representing growth of 2.4%, although operating profit declined to €7.7 million as customers delayed higher-margin projects and focused spending on essential contracts.

Transformation and balance sheet remain priorities

Econocom said it is accelerating its transformation by focusing on higher-value offerings while driving cost reductions, improving operational leverage and strengthening cash generation.

Net financial debt stood at €229 million at the end of June, compared with €208 million a year earlier, while free cash flow over the past 12 months totalled €63 million.

During June, the group also completed a €240 million Schuldschein private placement, significantly extending its debt maturities to 2029 and 2031. Originally launched with a target size of €100 million, the financing was heavily oversubscribed, which Econocom said demonstrated investors’ confidence in its business model.

The company also strengthened its presence in Italy through the acquisition of a 51% stake in Bagnetti, a technology solutions provider with annual revenue of around €30 million, enhancing its capabilities in artificial intelligence and cybersecurity solutions for the public sector.

Sustainability recognition and outlook

Econocom also received the EcoVadis Platinum Medal, placing the group among the top 1% of more than 150,000 companies assessed globally for environmental, social and governance (ESG) performance, with a score of 88 out of 100.

Looking ahead, the group reaffirmed its 2026 full-year guidance, forecasting 2-3% revenue growth. While acknowledging the impact of a difficult comparison with the exceptionally strong first half of 2025, management expects activity, particularly within the TMF division, to recover during the second half of the year as the benefits of its ongoing transformation continue to emerge.