(BFM Stock Exchange) – The consulting firm specializing in business transformation has unveiled online results for its entire financial year 2024/2025. Wavestone’s cash generation over the past year surprises the market favorably, as is the prospects for the year 2025/2026 deemed credible.

Wavestone passes the event of annual results. The consulting firm specializing in business transformation takes 5.7%, Tuesday June 3 around 2:20 p.m. after the publication of its 2024/2025 accounts ended at the end of March.

The copy rendered by Wavestone is online with its objectives as revised in early December 2024, and is in line with market expectations.

For its 2024/2025 offbeat exercise, the group specializing in the Council unveiled a recurrent operating profit up 17% over one year, reaching 119.1 million euros. Wavestone slightly exceeds the expectations of TP ICAP Midcap which anticipated a recurring operating profit of 118 million euros.

A “solid” cash generation

Compared to the turnover of 943.7 million euros, which had already been published in April, the corresponding margin thus appears at 12.6%. It contracts 0.5 percentage points compared to the rate of 13.1% released in 2023 on a comparable perimeter. However, it slightly exceeds the expectations of the company which aimed at a recurrent operating margin at 12.5%.

A little lower in the accounts, Wavestone saw its net profit jump 30% over a year, reaching 75.6 million euros, which is “perfectly online” with the expectations of TP ICAP Midcap. The group will offer a dividend up 21% to 0.46 euros for this offbeat exercise 2024/2025.

This publication conceals a positive element, which concerns the cash generation, which has proven to be “solid” appreciates the design office. The cash flows generated by activity increased by 7% over a year, to 89.3 million euros. TP ICAP Midcap explains this increase by an increase of 31% of the self -financing capacity at 133.4 million euros, which was however partly absorbed by an increase in the tax paid of 38.2 million euros.

The group displays a net cash position of 25.6 million euros which appears greater than the previous indications of the company of 20 million euros.

Wavestone therefore unveiled “results in accordance with expectations” summarizes TP ICAP Midcap. And yet, the group had to deal with a demanding market context, characterized by a weakness of the demand in advice, with customers who remain wait -and -see in the launch of new projects.

A “difficult” market context

Wavestone warns that the request for advice remains at a low level since the start of its 2025/2026 fiscal year. “Bank, industry, retail (trade, editor’s note) and luxury continue to be among the most difficult sectors,” concedes society.

The consulting group thus points out to evolve in a “disturbed environment”, marked by an economic and geopolitical context which generates “volatility and uncertainty”.

“Consequently, investment decisions are more difficult to take, consulting expenses are under pressure, and certain projects are postponed, even canceled,” explains Wavestone which brings in “resilience” of demand for advice in the energy, life sciences (life sciences) or insurance sectors. This request remains “even” supported on offers such as cybersecurity, cloud or artificial intelligence.

From a geographical point of view, the group did not see any sign of recovery at present-in any case in Europe but observes a better dynamic in the United States. But the area represents only about 9% of the estimated turnover of the group, “said TP ICAP Midcap in January.

An expected progression of the recurring operating margin

On the objective side, the group specializing in advice aims to grow positive in comparable data as well as recurring operating margin greater than 13%. These objectives agree at constant exchange rates and excluding new acquisition. The targets announced do not include Wivoo, a consulting company recently acquired by Wavestone, and which has been consolidated in group accounts since June 1.

“If the group confirms the objective of finding a recurrent operating margin of 15%, it repels the horizon on March 31, 2027 or 2028 (against March 31, 2026 initially) given a market situation still complicated. A report without stake on the expectations of the consensus which did not integrate this objective in its forecasts”, Note TP ICAP Midcap.

Wavestone adds to continue its external growth strategy, by granting priority to the United States, without excluding “however tactical operations in other geographic areas”.