Orange S.A. Lifts Full-Year Guidance Following Strong Q1 Growth

Orange S.A. (ORAN) has reported a positive start to the 2026 fiscal year, posting growth across its primary financial metrics for the first quarter. The company's EBITDAaL, a key measure of operational profitability, rose to 2.60 billion euros, representing a 4.9% increase over the 2.48 billion euros recorded in the same period last year. On a comparable basis, this growth was even more pronounced, with EBITDAaL increasing by 6.6%. This operational strength has led the company to upgrade its fiscal 2026 EBITDAaL guidance. Orange now expects growth to exceed 3%, an improvement over the previous target of approximately 3%. The firm confirmed that its other financial objectives for the 2026 period remain unchanged. Total revenues for the quarter reached 10.10 billion euros, a 1.9% increase from 9.91 billion euros year-over-year. Comparable revenue growth stood at 3.5%, bolstered by double-digit expansion in the Africa and Middle East markets, alongside robust contributions from France and other European territories. Retail services revenues increased by 1.9%, while wholesale services grew by 6.1%. Regarding cash flow, EBITDAaL minus eCAPEX grew to 1.06 billion euros, up 4.1% on a reported basis from 1.02 billion euros. The company also outlined its shareholder return strategy, proposing a dividend of 0.75 euro per share for fiscal 2025. Looking further ahead, Orange has established a dividend floor of 0.79 euro per share for the 2026 fiscal year, payable in 2027.