Elis SA

Elis S.A. will proceed with the early redemption on 13 October 2026 of all of its €380,000,000 2.25% bonds convertible into new shares and/or exchangeable for existing shares due 2029, known as OCEANEs, ISIN FR001400AFJ9. Unless bondholders exercise their conversion or exchange right by the applicable deadline, the company will redeem each outstanding bond in cash at an early redemption price of EUR 100,129.45, equal to the EUR 100,000 par value plus EUR 129.45 in accrued interest from 22 September 2026 to the redemption date. The company said the calculation agent Conv-Ex Advisors Limited verified that the arithmetic mean over 20 consecutive trading days from 11 August 2026 to 7 September 2026 of the volume-weighted average price of the shares multiplied by the conversion ratio exceeded 130% of each bond's par value. Bondholders may exercise their conversion or exchange right provided the relevant request date falls no later than 2 October 2026, the seventh business day before the early redemption date, with Uptevia acting as centralising agent. As of the notice date, 3,800 bonds remain outstanding out of 3,800 initially issued, and with a conversion ratio of 6,256.8564 shares per bond, a maximum of 23,776,054 Elis shares could be delivered, representing approximately 10.21% of the company's current share capital. Elis said it intends to use existing shares held following the completion of its share buyback program on 9 July 2026, limiting the number of newly issued shares that may be required.

Elis has acquired a Mexican flat linen rental and maintenance operator with 2025 revenues of approximately 5.5 million euros. The acquired company runs two laundries in Aguascalientes, employs 180 people, and its management team will remain in place. The acquisition will be consolidated in Elis's financial statements as of August 1, 2026, further strengthening its existing network in Mexico.

Elis posted first-half 2026 revenue of 2,457.1 million euros, up 4.9% with organic growth of 3.2%, and confirmed all its 2026 financial objectives. Adjusted EBITDA rose 4.9% to 853.8 million euros, keeping the margin stable at 34.7%, while adjusted EBIT increased 4.6% to 370.0 million euros with a stable margin of 15.1%. Net income grew 7.3% to 163.6 million euros, and current net income per diluted share rose 5.1% to 0.89 euro. Free cash flow was negative 30.1 million euros due to normal seasonal working-capital effects, and the 500-million-euro share buyback program was completed on July 9, 2026. The financial leverage ratio stood at 2.09x as of June 30, 2026.

Elis stock appears undervalued based on both discounted cash flow and earnings multiples. A Discounted Cash Flow model estimates an intrinsic value of around €37.95 per share, implying roughly 31.7% upside from recent levels, supported by projected free cash flows starting from about €598.4 million. On a price-to-earnings basis, Elis trades at about 15.3 times earnings, below the Commercial Services industry average of roughly 16.9 times and a modelled fair multiple of about 17.9 times. The ServBrasil acquisition, which expands the company's Brazilian network, underpins expectations for future cash generation, though integration risks remain a key consideration for investors.

Elis repurchased 853,342 of its own shares between June 29 and July 3, 2026, at a daily weighted average price of €27.4496 per share. The transactions were executed across multiple platforms, with the largest daily volumes on XPAR, including 90,426 shares on June 29 at €27.4244 and 92,798 shares on July 3 at €28.0403. The buybacks are part of a program authorized by the General Shareholders' Meeting on May 21, 2026, and the shares are intended to cover performance share plans, the Elis for All 2026 employee shareholding plan, potential obligations under OCEANEs due September 22, 2029, and cancellation under the 28th resolution.

Elis has acquired 100% of ServBrasil Soluções Em Lavanderia Ltda, a Brazilian provider of flat linen rental and maintenance services for the healthcare sector. ServBrazil generated revenues of approximately 5.0 million euros in 2025 and operates several in situ laundries in central and northeastern Brazil, including the states of Goiás, Paraíba and Piauí. The acquisition will strengthen Elis' existing network in the country and will be consolidated in the company's financial statements as of July 1, 2026.

Elis annonce avoir obtenu la médaille de Platine EcoVadis avec un score de 92 sur 100, en forte progression par rapport aux 80 sur 100 de 2025. Cette distinction place le Groupe dans le top 1 % des 150 000 entreprises évaluées au niveau mondial par EcoVadis, confirmant la maturité et la crédibilité de sa démarche RSE. La performance illustre la capacité du Groupe à progresser durablement dans un contexte de renforcement des exigences et d'évolution des méthodologies d'évaluation. EcoVadis évalue la performance RSE sur quatre piliers : environnement, social et droits humains, éthique et achats responsables, via un processus rigoureux combinant questionnaires et analyse de preuves par une tierce partie. Cette reconnaissance reflète la cohérence du modèle d'Elis, fondé sur les principes de l'économie circulaire visant à allonger la durée de vie des produits textiles, optimiser leur utilisation et limiter leur impact environnemental.

Elis SA disclosed the purchase of 934,121 of its own shares between June 15 and June 19, 2026, at a daily weighted average price of 26.7806 euros. The transactions were executed across the AQEU, CCXE, TQEX, and XPAR platforms under the buyback program authorized by the General Shareholders' Meeting of May 21, 2026. The shares are intended to cover maturing performance share plans, the Elis for All 2026 international employee shareholding plan, potential delivery obligations under OCEANEs due September 22, 2029, and the remainder for cancellation.