Veolia: Small improvement in FY26 guidance (1H26 First Take)

Research evidence excerpt

Veolia: Small improvement in FY26 guidance (1H26 First Take)

J P M O R G A N Europe Equity Research

30 July 2026

Veolia Neutral

VIE.PA, VIE FP

Small improvement in FY26 guidance (1H26 First Take) Price (29 Jul 26):€35.15

Price Target (Dec-27):€37.90

Our Take: We expect shares to be up slightly today on net positive results with a European Utilities & Clean Energy

AC~1% beat at the net income level and a small improvement in the FY guidance for Javier Garrido

the current net income, although partially offset by a less favorable working capital (34-91) 516-1557

evolution y/y. We note that the strong net income is mainly driven by the javier.x.garrido@jpmorgan.com

improvement in financial costs y/y. As expected, there was a small positive impact J.P. Morgan Securities plc

(+€4m) from forex in Q2 and a 1.8% negative impact from commodity prices in Pavan Mahbubani, CFA

H1, which we expect to ease through the year. We expect the conference call to (44-20) 7134-3056

pavan.mahbubani@jpmorgan.com

focus on the earnings momentum in H2, updates on Clean Earth consolidation and J.P. Morgan Securities plc

the disposal program.

Alejandra Botbol

• Noteworthy Areas: Veolia reported 1H26 results with Revenues of €22,193m, (44-20)alejandra.botbol@jpmorgan.com3493-8711

+0.8% yoy on a lfl basis, +1.5% yoy excluding energy prices, EBITDA J.P. Morgan Securities plc

of €3,552m, +5% yoy on an organic basis (broadly in-line with consensus), Samanvitha Theegela

current EBIT of €1,956m, +6.4% yoy (+1.1% vs consensus), and a current net (91-22) 6157-5846

income of €837m, +10.4% yoy at constant forex (+1.1% vs consensus). At the samanvitha.theegela@jpmchase.com

EBITDA level, the positive impact from forex in Q2 amounted to €4m (vs - J.P. Morgan India Private Limited

€33m in the previous quarter).