Atos Surpasses 2024 Liquidity Targets with €2.19 Billion Year-End Position, Marking Strong Financial Recovery

French IT giant Atos SE has announced its estimated liquidity position for the end of 2024, significantly exceeding expectations outlined in its Accelerated Safeguard Plan. The company reported a robust liquidity position of €2.191 billion as of December 31, 2024, surpassing the projected cash position by more than one billion euros.

The impressive financial performance includes several key components that contributed to the stronger-than-expected liquidity position. The company received an estimated €319 million in advance payments from customers, primarily from the public sector. Additionally, Atos generated €240 million in net proceeds from the successful sale of its Worldgrid business unit in December 2024. The company also maintains an undrawn Revolving Credit Facility of €440 million.

Even when excluding these three significant items, which were not included in the original business plan approved by the specialized commercial Court of Nanterre in October 2024, Atos’s year-end cash position would still stand at €1.192 billion. This figure represents a €40 million improvement over the €1.152 billion target presented in the Accelerated Safeguard Plan.

This financial achievement comes at a crucial time for Atos, following a challenging period marked by multiple leadership changes and profit warnings since 2021. The company recently completed a comprehensive financial restructuring in December 2024, which has resulted in a more sustainable capital structure with a €2.1 billion gross debt reduction.

The market has responded positively to this news, with Atos shares experiencing a significant 10% surge in early trading on the Paris stock exchange. However, it’s worth noting that the company’s stock has faced considerable pressure over the past year, declining by more than 90%.

The strong liquidity position demonstrates the effectiveness of Atos’s restructuring efforts and its ability to execute its financial strategy. The company now operates with no debt maturities before the end of 2029, providing it with enhanced resources and flexibility to implement its mid-term strategy. This improved financial standing has led to credit rating upgrades, with both S&P and Fitch assigning the company a B- rating with a stable outlook.

This financial milestone represents a significant turnaround for Atos, particularly considering its earlier challenges in 2024. The company had reported an operating loss of €1.7 billion in the first half of 2024, which was substantially higher than the €434 million loss recorded in the same period the previous year.

The positive liquidity report suggests that Atos’s strategic initiatives, including the sale of non-core assets and focus on operational efficiency, are beginning to yield results. The company’s ability to secure advance payments from customers and successfully complete the Worldgrid business unit sale demonstrates continued client confidence and effective portfolio management.