French IT company Atos (ATOS.PA) will proceed with a reverse stock split, set to take effect by May 1, in an effort to restore investor confidence. CEO Philippe Salle confirmed the decision on Wednesday, stating that the board will finalize approval in the coming days before initiating the process. The move follows a major financial restructuring last year, which significantly diluted shareholder value.
The reverse split was overwhelmingly approved at a general meeting in January. Atos shares have plummeted to historic lows, now trading at approximately one-third of a cent, after completing a 233-million-euro ($248.49 million) capital increase.
The company reported an annual revenue decline of 5.4% to 9.58 billion euros, missing previous forecasts. Market weakness and contract terminations contributed to the downturn. However, Atos highlighted a recovery in order intake, securing significant contracts such as a 165-million-euro extension with Eurotower and a deal to construct Finland’s latest national supercomputer.
Atos, once valued at 10 billion euros, now has a market capitalization of 600 million euros following governance instability and a failed restructuring attempt. While the company has not issued a 2025 outlook, Salle is set to outline his vision and mid-term strategy at the Capital Markets Day event on May 14.
The French government remains in exclusive negotiations to acquire Atos’ advanced computing segment, deemed critical for national defense. This division includes supercomputers essential for France’s nuclear deterrence and military communications.
Salle, who took over as CEO last month—Atos’ sixth in two years—reaffirmed that no additional asset sales would take place in 2025. “We’re not going to rip the group apart,” he stated, citing a strong cash position of 2.2 billion euros. He also dismissed any plans to raise the asking price for Atos’ mission-critical systems business, despite increasing military expenditures in Europe.
