(News Bulletin 247) – After opening up following rather encouraging results, the title of the specialist in professional software has violently tilted in the red after the company’s management indicated to rely on a stable cash flow over the year.

On the stock market, Dassault Systems is clearly in the eye of the cyclone. For several quarters, the market has been pointed at the accounts of the specialist in product life cycles management software (or “computer -assisted design and manufacturing”), not forgiving the slightest gap or the slightest clumsiness.

Investor complaints were multiple: a warning on results emitted last year due to contracts of contracts, the low dynamics of Medidata, its subsidiary specializing in clinical trials monitoring software, or, more broadly, a little just growth in the eyes of some to justify a relatively expensive action.

“The problem is that the company does not have strong enough growth – it no longer really outpens its market – to justify its status of growth value with demanding valuation multiple”, judges a financial intermediary.

Unfortunately for its shareholders, Dassault Systems collapses again on the Paris Stock Exchange, this Thursday, July 24, after the publication of its second quarter accounts.

The title had however opened up, taking up to 3.5% shortly before 10 a.m., which was then the highest increase in CAC 40. Market operators appreciated the results

described as “decent” by ODDO BHF, with income growth of 6%, greater than the figure of 4.6% expected by consensus.

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A cash expected stable in 2025

Everything changed during the conference call with the analysts, held from 10 a.m. During this “call”, the action has completely turned to lose up to 10%. Around 3:30 p.m., the title lost another 8.3% on the Paris Stock Exchange, accusing the second largest drop in CAC 40 behind Stmicroelectronics (-15%) which delivered disappointing margin prospects for the current quarter.

According to several analysts, two elements caused the title tumble. First of all, management has given disappointing indications on its trajectory in terms of cash flow. During the “Call”, the financial director, Rouven Bergmann, said to wait a decline in the third quarter of the company’s operational cash flow up to around 120 million euros.

This drop is due to three elements, he explained. Dassault Systèmes faces an increase in social charges linked to stock remuneration plans (with an impact of 40 million to 50 million euros), negative exchange effects, as well as a negative calendar effect on cash collection. The financial director explained that the company had signed important contracts whose cash collection will start next year. This “timing” will weigh in the third quarter even if a catch-up effect will take place over the first three months of 2026, he detailed.

Then in the fourth quarter of 2025, Rouven Bergmann indicated that Dassault Systems expected to release an operational cash flow in “light” improvement over a year, which will allow you to arrive at a stable cash flow over all of 2025.

Over the first six months of 2025, the operating cash flow increased by 17 million euros to 1.15 billion euros, an increase of 1.5%.

Problem: “The market expected a little better” than a stability in the cash flow this year, regrets a financial intermediary.

An acquisition that casts a doubt

“There is an alert on the cash flow. Admittedly, a set of elements, such as the impact of currencies or social charges, escape them. But this gives grain to grind the ‘bears’ (investors and market operators who bet on a drop in the title, editor’s note) which have argued for several quarters that the generation of cash is not up to what we can see in the result. develops an analyst.

Another element that was able to have the market saint: Rouven Bergmann indicated that a newly acquired company, Ascon Quebe, a German developer of automation systems developed by software, had been integrated into “almost” the entire second quarter. However, the market did not expect it, the announcement of the operation having been reported in July.

What raises questions about growth performance in the second quarter of 2025. Was there a significant impact linked to this acquisition?

“We cannot quantify this impact which must actually be weak since the company has around forty employees. But again that throws the doubt by default and still gives arguments to the ‘Bears'”, regrets the previously quoted analyst.

These elements thus largely eclipse the results of Dassault Systems which, in the second quarter, recorded growth of 6% of its revenues to 1.52 billion euros. The operating margin contracted by 0.7 percentage points to reach 29.3% while profit per share increased from 4% excluding exchange effects to 30 cents.

Regarding its forecasts, Dassault said Table for the third quarter on an increase in its revenues excluding exchange effects located between 5% and 8%, operating margin between 29.7% and 29.9% and profit growth per share between 5% and 9% excluding exchange effects. These perspectives are considered to be “relatively prudent” by Oddo BHF.

Over the age of 2025, the company confirmed its growth target of its income (6% to 8%) and its profit per share (7% to 10%) excluding exchange effects.

But the company had to lower its prospects for margins as well as turnover and net profit by action in absolute value to take into account unfavorable developments on currencies (especially the dollar).

The profit per share is expected between 1.32 euros and 1.35 euros, against 1.36 euros to 1.39 euros previously, the operating margin between 32.2% and 32.4%, against an interval of 32.3% to 32.6% previously, and turnover between 6.41 billion and 6.51 billion euros, against a range of 6.57 billions of euros to 6.67 billion euros before.