Key Highlights
- Orange shares surged over 3% following better-than-expected first-half financial results on both revenue and EBITDAaL metrics
- Middle East and Africa regions posted exceptional performance, with Q2 revenue climbing 15% compared to the previous year
- Company upgraded annual EBITDAaL growth forecast to exceed 4%; organic cash flow projection increased to approximately €4.3 billion
- First-half net income reached €3.6 billion, supported by a €2.4 billion benefit from MasOrange transaction accounting
- Telecommunications giant entered into preliminary agreement to acquire SFR collaboratively with Bouygues Telecom and Free
Shares of Orange SA advanced more than 3% during Monday trading sessions, reaching an intraday peak of €17.19 on the Paris exchange, following the French telecommunications operator’s release of first-half financial performance that exceeded market expectations and prompted the company to upgrade its annual projections for the second occasion in 2026.
The company reported first-half turnover of €20.95 billion, surpassing the consensus projection of €20.76 billion. EBITDAaL reached €6.13 billion, exceeding the average analyst forecast of €6.11 billion.
The equity momentarily exceeded Morgan Stanley’s €16.50 valuation target. The investment bank retained its “equal-weight” stance, observing that “MEA strength and the guidance raise” were compensating for underperformance in Spanish operations.
The Africa and Middle East segment emerged as the unambiguous performance leader. Regional turnover surged 13.9% during the six-month period, with the second quarter alone registering a 15% year-over-year increase. The territory welcomed 10 million additional mobile data subscribers.
Orange has revised its annual EBITDAaL growth projection upward to above 4%, compared with the previous forecast of above 3%. The organic cash flow target was elevated 7.5% to approximately €4.3 billion — a figure the corporation states exceeds its internal consensus by 4.2%.
Performance Across European Markets
French operations delivered marginally better results than anticipated, with Q2 revenue increasing 0.1% versus Morgan Stanley’s projection of a 1% contraction. The investment bank highlighted that underlying first-half expansion, excluding exceptional wholesale impacts, remained flat and trailed the organization’s annual objective.
Spanish operations represented the challenging area. MasOrange service revenue declined 2% while first-half EBITDAaL contracted 3%. Orange finalized the purchase of Lorca’s 50% interest in MasOrange during June for €4.25 billion, securing complete ownership of the Spanish telecommunications provider. Management anticipates strengthened results during the latter half of the year.
First-half net profit totaled €3.6 billion, representing a €3.7 billion year-over-year surge. This figure was substantially enhanced by a €2.4 billion accounting benefit stemming from the MasOrange consolidation and the unwinding of a previous-year restructuring provision. Adjusted net profit advanced 11.8% to €1.35 billion.
Net financial obligations expanded to €35.7 billion from €22.5 billion at the close of 2025, predominantly reflecting the MasOrange transaction. The net debt-to-EBITDAaL multiple climbed to 2.4x. Orange maintains a medium-term objective of reducing this ratio to approximately 2x.
Strategic SFR Acquisition Initiative
On June 6, Orange disclosed it had executed a preliminary agreement with Bouygues Telecom and Free to purchase SFR from Altice France. Orange’s portion of the aggregate enterprise valuation of €20.35 billion represents approximately 27%, equating to roughly €5.6 billion.
The transaction would contribute around 4 million mobile subscribers and 1 million fixed broadband connections within France. Regulatory clearance remains necessary, with completion anticipated no earlier than the latter half of 2027.
Orange additionally unveiled a partnership with Morrison to establish data center infrastructure in France, aiming for 400 MW of operational capacity, underpinned by a €3 billion capital commitment.
The corporation established a 2026 dividend of €0.79 per share, distributable in 2027, pending shareholder authorization.
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