French IT group Atos issued an annual revenue guidance on Wednesday, after it had suspended financial forecasts last year due to its restructuring, and said it targeted revenue of up to 10 billion euros ($11 billion) in 2028.
Once seen as a European tech champion with a market value of more than 10 billion euros at its highest, Atos emerged from financial troubles in 2024 thanks to a restructuring agreement with its creditors.
It had piled up 4.8 billion euros of debt in recent years, owing to a botched split project and a string of costly acquisitions.
Atos expects to generate 8.5 billion euros in revenue this year, an 11 per cent drop from 2024, citing voluntary contract reviews and low business traction prior to the completion of its rescue plan.
It also expects its operating margin to rise to 4 per cent in 2025, with a target of 10 per cent set for 2028.
Philippe Salle, Atos’ seventh CEO since 2021, is due to outline his four-year plan at a Capital Markets Day event in Paris later on Wednesday.
Under the new strategy, Atos will simplify its governance, exit several international markets and complete its asset disposals while creating a new business line for data and artificial intelligence.
It also plans to reduce general and administrative costs to about 5 per cent of revenues by 2028 through job cuts.
The group said it would invest 500 million euros in research and development and 100 million euros in start-ups.
Atos builds and owns the supercomputers used for virtual nuclear tests in France.
Negotiations with the French state for a potential acquisition of Atos’ advanced computing activities – crucial for national security – are ongoing, the company said.
The sale process for its mission critical systems and cybersecurity products businesses has instead been put on hold.
($1 = 0.8939 euros)
