Avolta Defies Currency Headwinds with 6% Organic Growth and 4% EBITDA Boost in Q2 2025

Avolta (SWISS: AVOLz) posted its Q2 2025 numbers on Thursday, showing organic growth held strong despite some tough currency headwinds. The company reported a core turnover of CHF3.562 billion, nudging up just 0.1% compared to the same quarter last year's CHF3.558 billion. Not much on the surface, but there's more beneath.

Digging deeper, organic growth clocked in at 6.0%, matching last year's pace and beating the analyst consensus that had pegged it around 5.1%. This uptick was mainly fueled by steady traffic gains and passengers spending more, suggesting demand remains resilient. That said, unfavorable foreign exchange rates knocked about 6.1% off sales, balancing out some of those gains. Acquisitions added a modest 0.1%, doing little to change the picture.

Profitability also chipped up, with core EBITDA rising to roughly CHF416 million, a 4% improvement over CHF400 million in Q2 2024. The EBITDA margin stretched out to 11.6%, up from 11.2%, slightly beating forecasts pegged at CHF412 million. On the cash flow front, core equity free cash flow grew 9% to CHF320 million, comfortably ahead of estimates of CHF309 million.

Avolta stuck to its mid-term roadmap looking to 2027: aiming for annual organic turnover growth of 5-7%, a steady core EBITDA margin expansion of 20-40 basis points yearly, and improving core free cash flow by 100-150 basis points on a constant currency basis.

The CEO sounded cautiously upbeat about the second half, noting that growth through July has been holding steady with the first half.

Regionally, the story gets interesting. Europe, Middle East, and Africa (EMEA), Asia-Pacific (APAC), and Latin America (LATAM) all posted solid organic growth north of 7.7%. Meanwhile, North America lagged a touch, with the US market dragging down the region's performance by about 0.2%, largely due to softer passenger traffic.

For a company riding currency pressure, maintaining its organic growth pace is notable. But with the US market slipping ever so slightly, it raises a question: can Avolta keep firing on all cylinders across the globe as the FX challenges persist? Time will tell.