Orange targets 5.2 billion euros free cash flow by

By Leo Marchandon and Gianluca Lo Nostro

Feb 19 (Reuters) – French telecoms operator Orange’s new financial targets were cheered by investors on Thursday as the group expects European consolidation and cyberdefence to drive returns.

Shares in Orange jumped around 5% to their highest level since April 2010, leading gains on France’s CAC 40 benchmark index, with analysts pointing to a stronger than expected guidance for capital spending and cash flow.

The company said it targeted organic cash flow of around 5.2 billion euros ($6.1 billion) in 2028 and lifted its dividend floor to 0.85 euros per share for 2028 from 0.79 euros this year.

Orange expects organic cash flow to grow at a 12% compound annual growth rate between 2025 and 2028, up from around 4 billion euros in 2026. 

The upbeat outlook came after Orange beat profit estimates for October-December 2025, in results released after Wednesday’s market close, driven by a strong performance in Africa and the Middle East.

Orange recently agreed a 4.25 billion euro deal to take full control of its Spanish joint venture MasOrange, creating Spain’s largest mobile operator. It expects to achieve over 500 million euros in synergies by 2026, building on the 350 million euros synergies realised in 2025.

In France, where Orange remains the market leader, the company is part of a consortium with Bouygues Telecom and Iliad-owned Free that is in talks to acquire a large portion of rival SFR’s operations. It said in-market consolidation, especially in France, remains its M&A priority.

The French group is targeting consolidation in Europe’s fragmented telecoms market as the European Commission aims to ease conditions for cross-border deals.

Orange aims to generate 1 billion euros in additional revenue by 2028 through services such as cybersecurity and cloud solutions, with cyberdefence set to bring 2 billion euros in revenue by 2030.

Berenberg analysts said the 2028 targets “appear strong and above consensus”, while JP Morgan noted the presentation confirmed that Orange would deliver double-digit growth in free cash flow and earnings per share through 2028. The dividend floor for 2028 also exceeded forecasts.

The company said it aims to double value generated from artificial intelligence by 2028, reaching 600 million euros.

($1 = 0.8477 euros)

(Reporting by Leo Marchandon in Gdansk and Gianluca Lo Nostro in Paris; editing by Matt Scuffham and Susan Fenton)