Latest news with #operating margin
Yahoo
04-08-2025
- Business
- Yahoo
JCDecaux SE (JCDXF) (H1 2025) Earnings Call Highlights: Strong Digital Growth Amid Market Challenges
Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points JCDecaux SE (JCDXF) reported a robust revenue growth of 3.4% year-on-year in H1 2025, driven by a 12.2% increase in digital out-of-home revenue. The company achieved a significant improvement in operating margin, increasing by 17.6% with a 200 basis points improvement as a percentage of revenue. Programmatic digital out-of-home revenue saw an impressive growth of 25.2%, highlighting the company's strong digital strategy. North America was the fastest-growing region with an 11.8% increase, showing strong geographic diversification. JCDecaux SE (JCDXF) continues to lead in ESG performance, receiving high ratings from multiple agencies, which positions it well for future opportunities. Negative Points The UK market experienced a decline of 2.9% due to high comparables, impacting overall growth. China's revenue saw a mid-single-digit decline, affecting the transport segment's performance. Net income decreased compared to H1 2024, largely due to one-off factors, indicating some financial volatility. The company expects low single-digit negative organic growth for Q3 2025, influenced by tough comparables from major sporting events. Working capital requirements negatively impacted free cash flow, with timing differences expected to normalize by year-end. Q & A Highlights Warning! GuruFocus has detected 3 Warning Signs with JCDXF. Q: Can you explain the slowdown in organic sales growth compared to Q2, and do you expect a pickup in Q4? A: The slowdown is mainly due to the UK, our second-largest market, which experienced a high single-digit decline. Additionally, one-off effects from sporting events like the UEFA and Paris Olympic Games impacted growth. We don't see a slowdown in most markets globally. (Jean Charles Lecou, Co-CEO) Q: What is the impact of the digital revenue growth on your operating profit, and how do you see the digital inventory evolving over the next five years? A: Digital revenue, which constitutes 40% of our total revenue, comes from less than 10% of our inventory. In the UK, for example, digital billboards generate 90% of revenues. We expect paper billboards to disappear over the next five years, with transport and rail becoming 100% digital. (Jean Francois Decour, Chairman of the Executive Board and Co-CEO) Q: Can you provide more details on the impact of the contracts won and lost this year on 2026? A: The lost contracts in 2025 had no significant impact on our top line, representing less than 20 million annually. We expect a positive impact on the bottom line, maintaining our targets for 2026 with an operating margin above 20% and free cash flow of $300 million. (David Burg, Chief Financial IT and Operations Officer) Q: How do you view the current M&A landscape, and which regions are you most interested in? A: Our strategy remains focused on bolt-on acquisitions to reinforce our position, with Europe being a key area of interest. We are also looking at opportunities in Latin America and Asia Pacific. Our platform is unique globally, and we complement our strategy with acquisitions when it makes sense. (Jean Charles Lecou, Co-CEO) Q: What are your expectations for digital growth, and do you anticipate double-digit growth beyond 2025? A: Digital out-of-home is expected to remain the fastest-growing segment in the media business, with double-digit growth over the next couple of years. Our growth will depend on digitizing markets like France, which is currently under-penetrated. We are also accelerating digitalization in China, which will help boost growth. (Jean Francois Decour, Chairman of the Executive Board and Co-CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
04-08-2025
- Business
- Yahoo
JCDecaux SE (JCDXF) (H1 2025) Earnings Call Highlights: Strong Digital Growth Amid Market Challenges
Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points JCDecaux SE (JCDXF) reported a robust revenue growth of 3.4% year-on-year in H1 2025, driven by a 12.2% increase in digital out-of-home revenue. The company achieved a significant improvement in operating margin, increasing by 17.6% with a 200 basis points improvement as a percentage of revenue. Programmatic digital out-of-home revenue saw an impressive growth of 25.2%, highlighting the company's strong digital strategy. North America was the fastest-growing region with an 11.8% increase, showing strong geographic diversification. JCDecaux SE (JCDXF) continues to lead in ESG performance, receiving high ratings from multiple agencies, which positions it well for future opportunities. Negative Points The UK market experienced a decline of 2.9% due to high comparables, impacting overall growth. China's revenue saw a mid-single-digit decline, affecting the transport segment's performance. Net income decreased compared to H1 2024, largely due to one-off factors, indicating some financial volatility. The company expects low single-digit negative organic growth for Q3 2025, influenced by tough comparables from major sporting events. Working capital requirements negatively impacted free cash flow, with timing differences expected to normalize by year-end. Q & A Highlights Warning! GuruFocus has detected 3 Warning Signs with JCDXF. Q: Can you explain the slowdown in organic sales growth compared to Q2, and do you expect a pickup in Q4? A: The slowdown is mainly due to the UK, our second-largest market, which experienced a high single-digit decline. Additionally, one-off effects from sporting events like the UEFA and Paris Olympic Games impacted growth. We don't see a slowdown in most markets globally. (Jean Charles Lecou, Co-CEO) Q: What is the impact of the digital revenue growth on your operating profit, and how do you see the digital inventory evolving over the next five years? A: Digital revenue, which constitutes 40% of our total revenue, comes from less than 10% of our inventory. In the UK, for example, digital billboards generate 90% of revenues. We expect paper billboards to disappear over the next five years, with transport and rail becoming 100% digital. (Jean Francois Decour, Chairman of the Executive Board and Co-CEO) Q: Can you provide more details on the impact of the contracts won and lost this year on 2026? A: The lost contracts in 2025 had no significant impact on our top line, representing less than 20 million annually. We expect a positive impact on the bottom line, maintaining our targets for 2026 with an operating margin above 20% and free cash flow of $300 million. (David Burg, Chief Financial IT and Operations Officer) Q: How do you view the current M&A landscape, and which regions are you most interested in? A: Our strategy remains focused on bolt-on acquisitions to reinforce our position, with Europe being a key area of interest. We are also looking at opportunities in Latin America and Asia Pacific. Our platform is unique globally, and we complement our strategy with acquisitions when it makes sense. (Jean Charles Lecou, Co-CEO) Q: What are your expectations for digital growth, and do you anticipate double-digit growth beyond 2025? A: Digital out-of-home is expected to remain the fastest-growing segment in the media business, with double-digit growth over the next couple of years. Our growth will depend on digitizing markets like France, which is currently under-penetrated. We are also accelerating digitalization in China, which will help boost growth. (Jean Francois Decour, Chairman of the Executive Board and Co-CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
3M Reports Second-Quarter 2025 Results, Increases Full-Year EPS Guidance
GAAP sales of $6.3 billion, up 1.4%; operating margin 18.0%, down (230) bps; EPS of $1.34, down 38%, all YoY Adjusted sales of $6.2 billion with organic growth of 1.5% YoY Adjusted operating margin of 24.5%, up 290 bps YoY Adjusted EPS of $2.16, up 12% YoY Operating cash flow of $(1.0) billion with adjusted free cash flow of $1.3 billion 2025 adjusted EPS guidance increased from $7.60 - $7.90 to $7.75 - $8.00, including the impact of tariffs ST. PAUL, Minn., July 18, 2025 /PRNewswire/ -- 3M (NYSE: MMM) today reported second-quarter 2025 results. "We delivered strong results in the second quarter, posting positive organic sales growth and double-digit EPS growth," said William Brown, 3M Chairman and CEO. "This continues our trend from Q1 with all three business groups growing organically for the third quarter in a row. Our 3M eXcellence operating model is the foundation for delivering on each of our strategic priorities, and it drives the operating rigor and rhythm of our performance culture. With execution improving and solid results in the first half, we have confidence in our increased full-year EPS guidance, which now embeds the expected impact of tariffs." Second-quarter highlights: Q2 2025Q2 2024GAAP EPS from continuing operations (GAAP EPS)$ 1.34$ 2.17Special items:Net costs for significant litigation 0.790.44(Increase) decrease in value of Solventum ownership0.01(2.00)Pension risk transfer charge—1.09Manufactured PFAS products0.02—Divestiture costs—0.23Adjusted EPS from continuing operations (adjusted EPS)$ 2.16$ 1.93Memo:GAAP operating income margin18.0 %20.3 %Adjusted operating income margin24.5 %21.6 %GAAP EPS of $1.34 and operating margin of 18.0%. Adjusted EPS of $2.16, up 12% year-on-year. Adjusted operating income margin of 24.5%, an increase of 2.9 percentage points year-on-year. GAAPAdjusted (non-GAAP)Net sales (billions)$6.3$6.2Sales changeTotal sales 1.4 %2.3 %Components of sales change:Organic sales0.61.5Acquisitions/divestitures——Translation0.80.8Adjusted sales excludes manufactured PFAS of $6.3 billion, up 1.4% year-on-year with organic sales up 0.6% year-on-year. Adjusted sales of $6.2 billion, up 2.3% year-on-year with adjusted organic sales up 1.5% year-on-year. 3M returned $1.3 billion to shareholders via dividends and share repurchases. Cash from operations of $(1.0) billion, driven by $2.2 billion net after tax payments for special item costs of significant litigation, primarily Public Water Systems and Combat Arms Earplugs. Adjusted free cash flow of $1.3 billion. This document includes reference to certain non-GAAP measures. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information. Updated full-year guidance 3M updated its full year 2025 guidance given the company's performance in the first half of the year. The updated guidance includes the impact from tariffs. Adjusted total sales growth1 in the range of ~2.5 percent, reflecting adjusted organic sales growth1 of ~2.0 percent. Adjusted EPS1 in the range of $7.75 to $8.00. Adjusted operating cash flow1 of $5.1 to $5.5 billion, contributing to >100 percent adjusted free cash flow conversion1. 1As further discussed at 4 within the "Supplemental Financial Information Non-GAAP Measures" sections, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items. Conference call 3M will conduct an investor teleconference at 9 a.m. ET (8 a.m. CT) today. Investors can access this conference via the following: Live webcast at Webcast replay at Consolidated financial statements and supplemental financial information non-GAAP measures View the Financial Statement Information on 3M's website: Forward-looking statements This document contains forward-looking statements. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast," "future," "outlook," "guidance" and other words and terms of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation; recession; military conflicts; trade restrictions such as sanctions, tariffs, reciprocal and retaliatory tariffs, and other tariff-related measures; regulatory requirements, legal actions, or enforcement; and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilities and the outcome of contingencies related to certain fluorochemicals; known as "PFAS," including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio; (4) risks related to the class-action settlement ("PWS Settlement") to resolve claims by public water suppliers in the United States regarding PFAS, as well as risks related to other settlements related to PFAS; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K (Reports), as well as compliance risks related to legal or regulatory requirements, government contract requirements, policies and practices, or other matters that require or encourage the Company or its customers, suppliers, vendors, or channel partners to conduct business in a certain way; (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product and service offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, tariffs, supply chain interruptions, or natural or other disasters; (9) unanticipated problems or delays when implementing new business systems and solutions, including with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information or operational technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies; (11) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws or regulations; (15) matters relating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized; the risk that the costs or dis-synergies will exceed the anticipated amounts; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment; risks under the agreements and obligations entered into in connection with the spin-off; and (16) matters relating to Combat Arms Earplugs ("CAE") and related products, including those related to, the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates ("Aearo Entities") and/or the Company ("CAE Settlement"). A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). Changes in such assumptions or factors could produce significantly different results. The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments. About 3M3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M posts on the News Center and social media could be deemed to be material information. Therefore, the company encourages investors, the media and others interested in 3M to review the information posted on 3M's News Center and the social media channels such as @3M or @3MNews. Contacts3MInvestor Contacts:Diane Farrow, 612-202-2449orEric Herron, 651-233-0043Media Contact:3MNews@ View original content to download multimedia: SOURCE 3M Company
Yahoo
16-07-2025
- Automotive
- Yahoo
Renault shares tumble 16% after guidance cut, interim CEO appointment
(Reuters) -Shares in Renault were down 16% at 0719 GMT after the French carmaker lowered its 2025 guidance and named finance chief Minto as an interim CEO. It aims to achieve a full-year operating margin of 6.5%, compared with a target of at least 7% previously. It also aims for free cash flow of 1 billion to 1.5 billion euros ($1.16 billion to $1.74 billion), versus more than 2 billion previously. ($1 = 0.8602 euros) Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
India's HCLTech slides on lower operating margin forecast
(Reuters) -Shares of HCLTech dropped about 3% on Tuesday after India's No.3 software services provider lowered its annual operating margin forecast, dampening hopes of a rebound in client spending across the sector. On Monday, HCLTech reduced its annual operating margin forecast to a range of 17% to 18% from a previous projection of 18% to 19% for fiscal year 2026.
