Sopra Steria Group SA (SOP.PA) Bundle
Born from the 2014 fusion of Sopra Group and Steria, Sopra Steria has grown into a European digital heavyweight with €5.8 billion in 2024 revenues, roughly 51,000 employees across nearly 30 countries and a clear sector focus on Public Sector, Financial Services, Defence & Security and Aeronautics & Space; the Group not only boosted net profit from continuing operations to €309.3 million in 2024 (up 68.4%) and strengthened free cash flow to €432.1 million, but also recorded an improved operating margin on business activity of 9.8%-its best since 2007-while proposing a dividend of €4.65 per share, pursuing Net‑Zero targets (54% reduction Scopes 1 & 2 by 2030) and executing strategic buys (Tobania, CS Group, Ordina) alongside the 2024 divestment of most Sopra Banking Software to double down on consulting, digital services and high‑value areas like defence, cybersecurity and AI as it targets annual organic growth of 2-5% and an operating margin of 10-11% for 2026-2028.
Sopra Steria Group SA (SOP.PA): Intro
Sopra Steria Group SA was formed in September 2014 through the merger of Sopra Group SA and Groupe Steria SCA, combining consulting, digital services and software development expertise to become a leading European digital transformation player. The Group has since pursued strategic acquisitions and portfolio refocusing to scale its consulting-led services across Europe and strengthen its position as a trusted European alternative to global operators.- Formation: Merger of Sopra Group SA and Groupe Steria SCA - September 2014.
- 2024 reported revenue: €5.8 billion.
- Workforce: ~51,000 employees across nearly 30 countries.
- Sector focus: Public Sector, Financial Services, Defence & Security, Aeronautics & Space.
- Key 2023 acquisitions: Tobania (Belgium), CS Group (France), Ordina (Netherlands).
- 2024 strategic move: Sale of most of Sopra Banking Software to refocus on consulting and digital services.
| Metric | Value |
|---|---|
| Revenue (2024) | €5.8 billion |
| Employees | ~51,000 |
| Geographical footprint | Nearly 30 countries (primarily Europe) |
| Foundation (current group) | September 2014 (merger) |
| Notable 2023 acquisitions | Tobania, CS Group, Ordina |
| 2024 strategic divestment | Majority of Sopra Banking Software sold |
- Consulting and transformation engagements: advisory, strategy, change management for large organisations in targeted sectors.
- Systems integration and implementation: delivering large-scale IT transformation projects, bespoke software and package implementation.
- Managed services and outsourcing: long-term application management, infrastructure hosting, cloud migration and operation contracts.
- Product and software revenue: industry-specific software suites and licences (notably reduced after the sale of most Sopra Banking Software in 2024).
- Project-driven professional services: time-and-materials and fixed-price contracts for digital engineering, cybersecurity, data & AI and user-experience design.
- European focus - emphasis on public sector and regulated industries to leverage local compliance, security and sovereignty requirements.
- Scale and delivery network - large nearshore/offshore delivery centres across Europe enabling competitive pricing and talent pooling.
- Acquisition-led capability build - 2023 buys (Tobania, CS Group, Ordina) broadened domain expertise and local market share.
- Portfolio refocus - disposal of most Sopra Banking Software in 2024 concentrates resources on higher-margin consulting and digital services.
- Large multi-year public sector contracts and transformation programmes (stable, recurring revenue).
- Cross-selling consulting into large legacy accounts and upselling managed services post-implementation.
- Demand for digital transformation, cloud, data/AI and cybersecurity in target sectors driving project pipelines.
- Operational efficiency and utilisation rates across billable consultants and delivery teams.
Sopra Steria Group SA (SOP.PA): History
Sopra Steria Group SA (SOP.PA) traces its roots to the merger of Sopra and Steria in 2014, creating a leading European consulting, digital services and software company. Since then the Group has expanded organically and via acquisitions to strengthen its consulting, systems integration, software and managed services capabilities across public sector and enterprise clients.- Listed: Euronext Paris, Compartment A - Ticker: SOP - ISIN: FR0000050809
- Employee shareholding: ~10% of share capital and ~13% of voting rights (second-largest shareholder)
- Major shareholder profile: diversified between institutional investors, retail shareholders and employees
- Board leadership: Chairman Pierre Pasquier; CEO Cyril Malargé; complemented by independent and executive directors overseeing strategy and governance
| Metric | 2024 | 2023 |
|---|---|---|
| Net profit attributable to the Group (continuing operations) | €309.3 million | (2023 figure not shown here) |
| Year-on-year change in net profit | +68.4% | - |
| Free cash flow | €432.1 million | €390.2 million |
| Proposed dividend per share | €4.65 | €4.65 (2023) |
| Employee ownership (approx.) | 10% of share capital / 13% voting rights | - |
- The combination of a diversified ownership base and a significant employee stake aligns incentives between staff and long-term shareholders.
- Strong 2024 cash generation (free cash flow €432.1m) and a robust net profit increase underpin the Board's decision to propose a stable dividend of €4.65 per share.
Sopra Steria Group SA (SOP.PA): Ownership Structure
Sopra Steria Group SA is a publicly listed European IT services and consulting company (Euronext: SOP.PA) delivering consulting, systems integration, software development and managed services. The Group is built around a people-first culture and a stated mission to guide customers, partners and employees towards bold choices by leveraging digital technology to build a positive future for all.
- Mission: guide customers, partners and employees towards bold choices by leveraging digital technology to build a positive future for all.
- People-centric approach: collaborative, end-to-end solutions designed to enhance competitiveness for large companies and public organizations.
- Listed status: traded on Euronext Paris under ticker SOP.PA, providing market liquidity and public disclosure.
The Group emphasizes sustainability and social responsibility as core pillars of its strategy. Key targets and progress are shown below.
| Metric | Target by 2030 | Progress reported (2024) |
|---|---|---|
| Net‑Zero commitment | Achieve Net‑Zero (science‑based pathways) | Ongoing: targets aligned with SBTi principles |
| Scope 1 & 2 GHG reduction | 54% reduction vs baseline by 2030 | 52.7% reduction achieved in 2024 |
| Scope 3 GHG reduction | 37.5% reduction vs baseline by 2030 | 23.9% reduction achieved in 2024 |
| Gender diversity - top tiers | Increase share of women in senior roles | 21.4% of the 3% most senior positions held by women; 21.5% of the 10% most senior positions in 2023 (a +1.1 pt increase) |
- Social responsibility initiatives: 'International Volunteer Days' mobilize employees for digital inclusion and education projects worldwide.
- Diversity actions: measurable increases in female representation in senior positions; active programs to widen talent pipelines.
- Operational model: combines consulting, systems integration, software product development and long‑term managed services contracts to deliver full‑lifecycle digital transformation.
How Sopra Steria makes money (revenue drivers):
- Consulting and digital transformation engagements (strategy, design, change management).
- Systems integration and custom software development for large enterprises and public sector clients.
- Managed services and outsourcing (application management, cloud operations, infrastructure).
- Product and platform licensing, plus recurring revenue from long‑term contracts and multi‑year service agreements.
For a full narrative on the Group's background, history, mission and detailed ownership context, see: Sopra Steria Group SA: History, Ownership, Mission, How It Works & Makes Money
Sopra Steria Group SA (SOP.PA): Mission and Values
Sopra Steria Group SA (SOP.PA) positions itself as a European leader in digital transformation, combining sector expertise, engineering skills and innovation to support public and private organizations. The Group's stated mission centers on helping clients transform their services and operations responsibly and sustainably, with core values of commitment, proximity to clients, excellence and responsibility. How It Works Sopra Steria operates through a collaborative approach that blends deep sector knowledge with advanced technologies to deliver end-to-end solutions - from consulting and systems integration to managed services and software products. The Group's model emphasizes long-term client relationships, multi-disciplinary teams and scalable delivery through nearshore/offshore centers.- Consulting & Advisory: strategy, transformation roadmaps and regulatory compliance.
- Systems Integration: large-scale program delivery, legacy modernization and cloud migrations.
- Product & Software: industry-specific platforms, SaaS offerings and IP-based solutions.
- Managed Services & BPO: run operations, cybersecurity operations centers and application management.
- Public Sector - digitalization of government services, citizen platforms and public administration modernization.
- Financial Services - banks, insurance and payments: core banking transformation, compliance and fintech integration.
- Defence & Security - secure systems, mission-critical IT and resilient communications.
- Aeronautics & Space - avionics software, engineering and digital services for aerospace programmes.
- Dedicated sector teams (Public, Financial, Defence & Security, Aeronautics & Space) with domain leaders and product lines.
- Centralized leadership and Group functions for strategy, finance, legal and R&D to ensure alignment and governance.
- Regional delivery hubs and nearshore centers to optimize cost, time-zone coverage and talent access.
- Cloud and AI partners: Microsoft, AWS, Google Cloud for cloud-native transformation and infrastructure.
- Industrial & defence partners: collaboration with major industrial players (e.g., Airbus, Thales) on complex systems and programs.
- Academic and research ties: joint labs and co-development projects to adapt AI and advanced engineering to client needs.
- Responsible AI: governance, explainability and privacy-by-design for regulated sectors (public, finance, defence).
- Applied AI: using machine learning, NLP and computer vision to solve business problems (fraud detection, predictive maintenance, citizen services automation).
- Industrialization: packaging AI into repeatable platforms and managed services to scale deployments across clients.
- Professional services and consulting - strategic and transformation engagements billed on time-and-materials or fixed-price contracts.
- Systems integration and project delivery - large contracts for implementation and custom development.
- Managed services and outsourcing - recurring revenue from multi-year contracts for application management, cloud operations and BPO.
- Licensing and product revenues - proprietary software, IP and industry platforms (SaaS and perpetual licenses).
| Metric | 2023 | 2022 |
|---|---|---|
| Group Revenue (€m) | 5,360 | 4,860 |
| Operating Income / EBIT (€m) | 349 | 286 |
| Employees (approx.) | 46,300 | 45,700 |
| Defence & Cybersecurity experts | 4,000+ | 3,800+ |
Sopra Steria Group SA (SOP.PA): How It Works
Sopra Steria generates revenue by combining consulting, systems integration, software development and managed services to deliver end-to-end digital transformation for public and private clients. Its business model mixes high-value advisory work with recurring application management and outsourcing contracts, supplemented by software products and IP.- Primary revenue streams: consulting & transformation, digital services & integration, software development & licensing, and long-term managed services/outsourcing.
- Contract mix: large multi-year public-sector outsourcing deals provide recurring cash flow; bespoke transformation projects and product sales generate higher margins.
- Sector focus drives pricing power: defense, cybersecurity, financial services, telecoms, public sector and AI initiatives.
- €200 million service center contract for SNCF in France (outsourcing/managed services)
- £58 million NHS platform contract in the UK (healthcare digital platform and hosting)
- High-value consulting and software services lift operating margins compared with pure staffing models.
- Long-term outsourcing and managed services create predictable, recurring cash flow and lower revenue volatility.
- Investment in proprietary software and AI capabilities enhances cross-sell and upsell potential to existing clients.
| Metric (2024) | Value | Notes |
|---|---|---|
| Revenues | €5,760 million | Implied from stated FCF share (see FCF row) |
| Operating margin on business activity | 9.8% | Best level since 2007; improved operational performance in 2024 |
| Free cash flow (FCF) | €432 million (7.5% of revenues) | Strengthened cash generation in 2024 |
| Proposed dividend | €4.65 per share | Reflects commitment to shareholder returns |
| Major public contracts cited | €200m (SNCF); £58m (NHS) | Examples of revenue-generating, multi-year deals |
- Targeting defense, cybersecurity and AI to capture higher-margin, mission-critical projects.
- Expanding managed services and cloud transformation to increase recurring revenue share.
- Cross-border delivery footprint and sector specialization enable competitive bidding for large public contracts.
Sopra Steria Group SA (SOP.PA): How It Makes Money
Sopra Steria generates revenue by combining consulting, systems integration, software products and long-term managed services contracts across public sector and regulated industries. Its scale - ~51,000 employees in nearly 30 countries - supports large transformation programs and recurring outsourcing streams that drive cash generation and margin stability. Recent strategic acquisitions (notably in 2023) have expanded capabilities in cloud, cybersecurity and sector-specific software, reinforcing its position as a European alternative to global IT providers and increasing exposure to digital-sovereignty areas such as defense and cybersecurity.- Primary revenue streams: consulting & digital transformation, systems integration, application development & maintenance, managed services (outsourcing), and packaged software/licensing.
- Key end markets: public sector, financial services, defense, transport, energy, and telecoms - sectors with rising demand for secure, sovereign digital solutions.
- Competitive edge: European footprint, regulated-industry expertise, and vertical software assets acquired to boost recurring revenues.
| Metric | Reported / 2023 | Target / 2026-2028 |
|---|---|---|
| Revenue | ≈ €5.4 billion | Organic growth 2%-5% p.a. |
| Operating margin on business activity | ~8-9% (historic range) | 10%-11% |
| Free cash flow | Historic variability; improving | 5%-7% of revenue |
| Employees / Geography | ~51,000; ~30 countries | Maintain pan‑European scale; targeted hires in growth areas |
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