Orange Earnings: Overdelivers in 2024 and Raises Guidance for 2025; We Praise Cost Efforts

Orange has been overdelivering on its promises over the past 24 months, and the fourth quarter was no exception. EBITDAaL grew 3.2% in the quarter, bringing the full-year increase to 2.7%, in line with the firm’s ambition of achieving low-single-digit growth. For 2025, Orange raised its EBITDAaL guidance from low-single-digit growth to around 3%, which we view favorably. Orange also reported organic free cash flow of EUR 3.4 billion, surpassing its EUR 3.3 billion target, while increasing its 2025 guidance to more than EUR 3.6 billion, up from the previous EUR 3.5 billion. We are maintaining our EUR 13.40 fair value estimate and no-moat rating.