Orange Reports Robust Q1 2026 Performance Driven by Strong Growth in Africa & Middle East
Telecom giant Orange S.A. has announced a powerful start to 2026, with first-quarter revenues climbing to €10.1 billion, marking a 3.5% year-on-year increase. The impressive growth was largely fueled by stellar performances in its Africa and Middle East operations, underscoring the strategic importance of these emerging markets.
Regional Powerhouse: Africa and Middle East Lead the Charge
The Africa and Middle East region proved to be Orange’s primary growth engine, experiencing a remarkable 12.7% surge in revenues. This significant contribution highlights the success of Orange’s strategy in these dynamic markets. Alongside this, France saw a steady 2.3% increase, while the rest of Europe contributed with a 2.2% rise in revenues. Retail services maintained strong momentum with a 2.9% increase, complemented by a 6.1% growth in wholesale revenues, boosted by fibre co-financing initiatives in France.
Operational Excellence and Strategic Vision
Operationally, Orange demonstrated robust health, with its EBITDAaL (Earnings Before Interest, Taxes, Depreciation, Amortization, and Lease expenses) growing by 6.6% to €2.6 billion. This growth is attributed to ongoing efficiency enhancements, strong retail sector performance, and positive wholesale activities. Even excluding exceptional items, EBITDAaL growth stood at a healthy 3.5%. Capital expenditure for the quarter was €1.54 billion, aligning with the company’s full-year targets. Orange also reaffirmed its leadership in European fibre infrastructure, boasting nearly 60 million connectable households.
CEO Christel Heydemann lauded the results, attributing them to excellent team execution and the efficacy of the company’s “Trust the Future” strategic plan, launched earlier this year. She emphasized Orange’s resilience amidst global challenges and its limited exposure to geopolitical tensions in the Middle East.
Positive Outlook and Strategic Moves
Looking ahead, Orange has upgraded its full-year 2026 EBITDAaL growth guidance to “above 3%,” an increase from its previous estimate of “around 3%.” Other financial targets remain consistent, including an eCAPEX-to-revenue ratio of approximately 15%, organic cash flow of around €4 billion, and a medium-term net debt-to-EBITDAaL ratio of about 2x. The anticipated full takeover of MasOrange by the end of Q2 is expected to further solidify Orange’s standing in the European telecom market.
In a significant development, Orange confirmed exclusive negotiations with Bouygues Telecom and the Iliad Group for a potential acquisition of SFR from Altice France. This move, if finalized, could substantially reshape the competitive landscape of the French telecom sector, though the company noted that completion is not yet certain.
Shareholder Returns
Orange is committed to shareholder value, proposing a dividend of €0.75 per share for the 2025 fiscal year, with the final payment slated for June 2026. For 2026, the Group has set an ambitious minimum dividend target of €0.79 per share, reflecting strong confidence in its financial trajectory and cash generation capabilities.
