Atos – previously recognized as a top European player in the software and technology industry – has been hovering on the edge of bankruptcy in recent times, despite obtaining an important restructuring agreement with lenders and bondholders in June.
Atos has updated its yearly 2024 group income projections, now expecting revenues of 9.7 billion euros ($10.72 billion), a decrease from the 9.8 billion euros initially predicted. The firm also noted that while it anticipates cash flow remaining positive, it’s expected to be slightly diminished compared to the previous year.
The collective’s profit margin is expected to reach 2.4% of sales this year, a decrease from the previously set target of 2.9%.
The firm’s leverage ratio is anticipated to fall short of a ratio of 2.0 in 2027, being surpassed by the earlier set deadline of the end of 2026. Additionally, Atos has revised its revenue and operating margin goals for 2027.
A legal session to authorize the sped-up protection strategy is scheduled for October 15, Atos has declared.
Atos’ strategy for reorganizing, anticipated to lead to significant share dilution for current owners, will go into effect once the court gives the green light, accompanied by multiple stock buybacks and the issuance of more debt. The firm reported a broader operating loss in the first half of the year due to write-offs and decreased sales in the Americas, along with a reduced pace of government contracts in Europe.
($1 = 0.9048 euros)