Econocom H1 results hit by financing business slowdown

The French VAR expects recovery later in the year as its products division benefits from chip shortage demand

Econocom has reported mixed results for H1 FY26, dragged down by its technology management and financing (TMF) business despite momentum in its products unit.

The France-HQ organisation posted first half revenue of €1.4bn (£1.2bn), down 3.7 per cent year-on-year from €1.45bn, or 5.3 per cent organically.

The group’s TMF unit fell 24.5 per cent to €464.8m following what the firm described as a particularly strong H1 FY25.

Econocom said it adopted a more cautious approach to financing deals to preserve its balance sheet, with the revenue decline narrowing to eight per cent.

On the other hand, products and solutions turnover climbed 15.8 per cent to €665.9m, driven by acquisitions and customers bringing forward purchases ahead of an expected chip shortage.

Services earnings remained broadly flat at €268.6m, up 2.4 per cent.

CEO Angel Benguigui said the business had continued to execute its transformation despite supply chain pressures and geopolitical uncertainty.

“During the first half of 2026, marked by supply-chain tensions and the current geopolitical developments, Econocom continued to execute its transformation with discipline and consistency,” he said.

“We further progressed on the One Econocom plan, notably by pivoting our organisation toward higher value offers structured around our four strategic domains, while maintaining a strong focus on operational efficiency.”

The group said it is continuing to reshape the business around four strategic areas: audiovisual solutions, financing solutions, infrastructure and workplace, while also focusing on cost reduction and improving operational leverage.

Last month, the company also acquired a 51 per cent stake in Italian IT services firm Bagnetti, which generates about €30m in annual revenue and specialises in AI and cybersecurity solutions for the public sector.

Moving forward, Econocom remains confident in its full-year guidance of two to three per cent revenue growth, saying it expects activity in its TMF business to recover during the second half of the year following the difficult comparison with H1 FY25.