Overview of the Growth and Financial Targets
Teleperformance (TP), a global leader in customer experience outsourcing, has announced its ambitious new strategic plan titled "Future Forward," aiming to accelerate transformation and growth through 2026-2028. Central to this strategy is a commitment to return approximately €1.5 billion to shareholders by 2028 via dividends and share buybacks, representing about 50% of the net free cash flow[1][2].
The company targets an annual organic revenue growth between 4% and 6% by 2028, alongside achieving a recurring EBITA margin of around 15.5%, which will account for the costs related to AI transformation[2]. Over the 2026 to 2028 period, TP expects to generate approximately €3 billion in cumulative net free cash flow, which includes investments made towards AI initiatives[1][2].
Capital Allocation Priorities
TP plans a balanced approach to capital allocation with three key priorities:
- Investing around 20% of net free cash flow to accelerate AI-driven transformation, encompassing strategic partnerships and selective acquisitions.
- Fortifying the company's financial position by targeting a net debt leverage ratio of 1.2x EBITDA by 2028.
- Returning about half of the free cash flow to shareholders, totaling approximately €1.5 billion, through a combination of dividends and share buybacks, while maintaining its existing dividend policy.
These measures aim to support sustained growth while ensuring shareholder value and financial flexibility[1][2].
Focus on Artificial Intelligence Integration
A significant focus of the "Future Forward" plan is the infusion of AI technologies into TP’s operations. The company plans to channel substantial investments into AI to enhance business processes and improve service offerings. The 2025 Capital Markets Day event included an AI technology showcase featuring both TP’s proprietary AI solutions and those from partnered AI technology providers[1].
Upcoming Investor Engagements
TP's leadership, including CEO Daniel Julien and Deputy CEO Thomas Mackenbrock, will further elaborate on the strategic priorities and medium-term financial outlook during the Capital Markets Day 2025. This event is accessible virtual to interested stakeholders, fostering transparency and engagement[1].
About Teleperformance
Teleperformance is a global leader in outsourced customer experience management, offering integrated services that enhance business process outsourcing for clients worldwide. With this new strategy, the company is poised to harness technological innovations, especially in AI, to accelerate growth and deliver value to shareholders through disciplined capital management[2].
For more information, visit TP’s official Capital Markets Day 2025 webcast.
