The very strong growth in revenue from one fiscal year to the next is, of course, thanks to the acquisitions of Q_PERIOR and Aspirant Consulting. The former consolidates Wavestone's presence in the German market, while the latter serves as a bridgehead in the United States.
In organic terms, Wavestone, formerly Solucom, posted virtually unchanged revenue, to within a few hundred thousand euros. The operating margin slipped a few points, but the decline was limited. Other indicators—activity rate, daily rate, order book, HR turnover, etc.—were also stable.
The group's portfolio is well diversified across different industries and geographies. Half of its revenue is generated in France, a quarter in Germany, a tenth in the US, and another tenth in Switzerland, with the rest coming mainly from the UK.
In terms of customers, the only area of concern is exposure to Deutsche Bahn, as the German rail group accounts for 7% of Wavestone's revenue, followed by EDF, which accounts for 4%. It should be noted that this concentration is not unusual for a consulting firm of this size.
Wavestone is preparing to join the big leagues—the French company will soon exceed €1bn in revenue—and continues to prepare its new management structure. Pascal Imbert, who will now serve as sole chairman, will be replaced as CEO by Karsten Höppner, a consulting veteran who has led Q_PERIOR since 2011.
Ensuring smooth Franco-German cohabitation will be a key challenge over the next decade. Alongside Höppner, the deputy CEO position will be filled by Benoît Darde, while Wavestone's chief financial officer and guardian of the financial orthodoxy that has long characterized its management, Laurent Stoupy, will remain in his position.
Despite sustained growth—revenue has quadrupled in ten years—Wavestone's market valuation has been stagnant since early 2022. In addition to the current difficult economic climate, one of the reasons for this is the squeeze on margins following a truly exceptional period between 2019 and 2024, which raised legitimate doubts about its sustainability.
Nevertheless, Wavestone is expected to post operating profit of around €125m next year. At 10x this profit, its current market capitalization is hovering around its historical average valuation.
In addition to its elite management, this strong performance is undoubtedly due to its tightly controlled shareholding structure, with 70% of the capital held by management—including 45% by the Imbert-Dancoiscne duo—and employees.
There are many similarities between Wavestone and the two other French consulting champions of comparable size, Neurones and Alten; all three have long been favorites of Zonebourse. More specialized in IT consulting, the first two are weathering the economic downturn better than the third, which specializes in engineering consulting.
