Veolia Environnement : Consolidated financial statements as of June 30th 2026

‌CONSOLIDATED FINANCIAL STATEMENT AT JUNE 30, 2026

‌Consolidated financial statements -June 30, 2026‌

1. ‌CONSOLIDATED STATEMENT OF FINANCIAL POSITION
   

   Consolidated Statement of Financial Position – Assets

   (€ million) Notes As of December 31, 2025 As of June 30, 2026

   Goodwill	Note 6.1	11,456	13,913
   Concession intangible assets	Note 6.2.1	5,301	5,272
   Other intangible assets	Note 6.2.2	2,645	2,793
   Property, plant and equipment	Note 6.3	18,404	19,263
   Rights of use (net)	Note 6.4	1,806	1,994
   Investments in joint ventures	Note 5.2.1	948	999
   Investments in associates	Note 5.2.1	616	608
   Non-consolidated investments		84	80
   Non-current operating financial assets	Note 5.4	1,012	1,058
   Non-current derivative instruments – Assets	Note 7.2	45	107
   Other non-current financial assets	Note 7.1.3	520	589
   Deferred tax assets	Note 10.1	1,970	1,944
   Non-current assets		44,807	48,621
   Inventories and work-in-progress	Note 5.3	1,465	1,566
   Operating receivables	Note 5.3	13,739	14,337
   Current operating financial assets	Note 5.4	135	126
   Other current financial assets	Note 7.1.3	2,360	2,496
   Current derivative instruments – Assets	Note 7.2	144	207
   Cash and cash equivalents	Note 7.1.4	8,021	7,288
   Assets classified as held for sale	Note 3.2	–	–
   Current assets		25,864	26,021
   TOTAL ASSETS		70,671	74,642

   The accompanying notes are an integral part of these condensed interim consolidated financial statements.

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

   Consolidated Statement of Financial Position – Equity and Liabilities

   (€ million) Notes As of December 31, 2025 As of June 30, 2026

   Share capital	Note 8.1.1	3,709	3,712
   Additional paid-in capital		9,895	9,891
   Deeply-subordinated perpetual securities		3,831	3,744
   Reserves and retained earnings attributable to owners of the Company	5 & Note 8.1	-6,580	-6,473
   Total equity attributable to owners of the Company	Note 8.1	10,855	10,874
   Total equity attributable to non-controlling interests	Note 8.2	2,409	2,624
   Equity		13,264	13,499
   Non-current provisions	Note 9	2,661	2,710
   Non-current financial liabilities	Note 7.1.1	18,978	20,735
   Non-current IFRS 16 lease debt	Note 7.1.2	1,514	1,672
   Non-current derivative instruments – Liabilities	Note 7.2	319	364
   Concession liabilities – non-current	Note 5.5	1,339	1,311
   Deferred tax liabilities	Note 10.1	2,557	2,550
   Non-current liabilities		27,368	29,342
   Operating payables	Note 5.3	19,216	18,924
   Concession liabilities – current	Note 5.5	311	324
   Current provisions	Note 9	1,260	917
   Current financial liabilities	Note 7.1.1	8,341	10,778
   Current IFRS 16 lease debt	Note 7.1.2	469	505
   Current derivative instruments – Liabilities	Note 7.2	226	261
   Bank overdrafts and other cash position items	Note 7.1.4	215	90
   Liabilities directly associated with assets classified as held for sale	Note 3.2	–	–
   Current liabilities		30,039	31,801
   TOTAL EQUITY AND LIABILITIES		70,671	74,642

   The accompanying notes are an integral part of these condensed interim consolidated financial statements.

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

2. ‌CONSOLIDATED INCOME STATEMENT‌
   

   (€ million) Notes Half year ended June 30, 2025 Half year ended June 30, 2026

   Revenue	Note 5.1	22,048	22,193
   Cost of sales	Note 5.2	-18,161	-18,222
   Selling costs	Note 5.2	-491	-488
   General and administrative expenses	Note 5.2	-1,668	-1,651
   Other operating revenue and expenses	Note 5.2	-108	-149
   Operating income before share of net income (loss) of equity-accounted entities	Note 5.2	1,620	1,683
   Share of net income (loss) of equity-accounted entities		47	49
   o/w share of net income (loss) of joint ventures	Note 5.2.1	24	23
   o/w share of net income (loss) of associates	Note 5.2.1	23	26
   Operating income after share of net income (loss) of equity-accounted entities		1,667	1,732
   Cost of net financial debt	Note 7.3.1	-305	-350
   Other financial income and expenses	Note 7.3.2	-163	-147
   Pre-tax net income (loss)		1,199	1,235
   Income tax expense	Note 10.1	-307	-319
   Net income (loss) from continuing operations		892	916
   Net income (loss) from discontinued operations	Note 3.2.1	-6	11
   Net income (loss) for the period		886	927
   Attributable to owners of the Company		657	682
   Attributable to non-controlling interests	Note 8.2	229	245
   NET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY PER SHARE (in euros)	Note 8.5
   Basic		0.81	0.84
   Diluted		0.80	0.84
   NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY PER SHARE (in euros)	Note 8.5
   Basic		0.81	0.83
   Diluted		0.81	0.83
   NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY PER SHARE (in euros)	Note 8.5
   Basic		-0.01	0.01
   Diluted		-0.01	0.01

   The accompanying notes are an integral part of these condensed interim consolidated financial statements.

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

3. ‌CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME‌
   

   (€ million) Half year ended June 30, 2025 Half year ended June 30, 2026

   Net income (loss) for the period	886	927
   Actuarial gains or losses on pension obligations	12	57
   Income tax expense	-3	-10
   Amount net of tax	8	46
   Fair value adjustments on financial instruments at fair value through equity not subsequently released to net income	-1	5
   Income tax expense –		–
   Amount net of tax	-1	5
   Other items of comprehensive income not subsequently released to net income 8		51
   o/w attributable to joint ventures –		–
   o/w attributable to associates –		–
   Fair value adjustments on hedging costs	-6	24
   Income tax expense –		–
   Amount net of tax	-6	24
   Fair value adjustments on financial instruments at fair value through equity subsequently released to net income –		–
   Income tax expense –		–
   Amount net of tax –		–
   Fair value adjustments on cash flow hedge derivatives	-9	71
   Income tax expense	4	-25
   Amount net of tax	-5	46
   Foreign exchange gains and losses:
   	-1,345	495
   Amount net of tax	-1,345	495
   	97	-69
   	1	1
   Amount net of tax	98	-68
   Other items of comprehensive income subsequently released to net income	-1,258	498
   o/w attributable to joint ventures	-94	54
   o/w attributable to associates	-10	9
   Total Other comprehensive income	-1,251	549
   TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-365	1,476
   Attributable to owners of the Company	-473	1,158
   Attributable to non-controlling interests	108	317

   • on the translation of the financial statements of subsidiaries drawn up in a foreign currency

   • on the net financing of foreign operations

   The accompanying notes are an integral part of these condensed interim consolidated financial statements.

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

4. ‌CONSOLIDATED CASH FLOW STATEMENT‌
   

   (€ million) Notes As of June 30, 2025 As of June 30, 2026

   Net income (loss) for the period		886	927
   Net income (loss) from continuing operations		892	916
   Net income (loss) from discontinued operations		-6	11
   Operating depreciation, amortization, provisions and impairment losses		1,430	1,463
   Financial amortization and impairment losses		-14	4
   Gains (losses) on disposal of operating assets		-31	6
   Gains (losses) on disposal of financial assets		16	9
   Share of net income (loss) of joint ventures	Note 5.2.1	-24	-23
   Share of net income (loss) of associates	Note 5.2.1	-23	-26
   Dividends received	Note 7.3.2	-2	-1
   Cost of net financial debt	Note 7.3.1	305	350
   Income tax expense	Note 10	307	319
   Other items		153	142
   Operating cash flow before changes in working capital	Note 4	3,008	3,159
   Change in operating working capital requirements		-1,171	-1,238
   Change in working capital requirements of concessions		-125	-132
   Income taxes paid		-330	-371
   Net cash from operating activities of continuing operations		1,382	1,419
   Net cash from operating activities of discontinued operations 0			-5
   Net cash from operating activities		1,382	1,414
   Industrial investments, net of grants		-1,293	-1,247
   Proceeds on disposal of industrial assets		89	113
   Purchases of investments	Note 3.1	-524	-2,667
   Proceeds on disposal of financial assets	Note 3.1	20	58
   Operating financial assets
   New operating financial assets	Note 5.4	-106	-112
   Principal payments on operating financial assets	Note 5.4	82	84
   Dividends received (including dividends received from joint ventures and associates)		74	74
   New non-current loans granted		-48	-60
   Principal payments on non-current loans		44	26
   Net decrease/increase in current loans		-5	-36
   Net cash used in investing activities of continuing operations		-1,667	-3,765
   Net cash used in investing activities of discontinued operations –			–
   Net cash used in investing activities		-1,667	-3,765

   (€ million) Notes As of June 30, 2025 As of June 30, 2026

   Net increase (decrease) in current financial liabilities	Note 7.1.1	-976	-273
   Repayment of current IFRS 16 lease debt	Note 7.1.2	-258	-269
   Other changes in non-current IFRS 16 lease debt	Note 7.1.2	-30	-40
   New non-current borrowings and other debt	Note 7.1.1	2,207	4,314
   Principal payments on non-current borrowings and other debt	Note 7.1.1	-84	-151
   Change in liquid assets and financing financial assets	Note 7.1.3	5	-91
   Proceeds on issue of shares		1	2
   Share capital reduction –			–
   Transactions with non-controlling interests: partial purchases (1)		-1,562	-1
   Transactions with non-controlling interests: partial sales –			3
   Issue / repayment of deeply subordinated securities		497	–
   Coupons on deeply subordinated securities		-94	-87
   Purchases of/proceeds from treasury shares		9	10
   Dividends paid		-1,173	-1,307
   Interest paid		-313	-343
   Interest on IFRIC 12 operating assets		-40	-38
   Interest on IFRS 16 lease debt (2)	Note 7.3.2	-34	-32
   Net cash from (used in) financing activities of continuing operations		-1,845	1,697
   Net cash from (used in) financing activities of discontinued operations –			–
   Net cash from (used in) financing activities		-1,845	1,697
   Effect of foreign exchange rate changes and other		-99	46
   Increase (decrease) in external net cash of discontinued operations –			–
   NET CASH AT THE BEGINNING OF THE PERIOD		9,404	7,806
   NET CASH AT THE END OF THE PERIOD		7,175	7,198
   Cash and cash equivalents	Note 7.1.4	7,330	7,288
   Bank overdrafts and other cash position items	Note 7.1.4	156	90
   NET CASH AT THE END OF THE PERIOD		7,175	7,198

   1. Mainly related to the acquisition of the 30% minority interests in Water Technologies and Solutions in 2025.

   2. Interest on IFRS 16 lease debt is not included in the Cost of net financial debt, but in Other financial income and expenses (see Note 7.3.2).

   The accompanying notes are an integral part of these condensed interim consolidated financial statements.

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

5. ‌STATEMENT OF CHANGES IN EQUITY‌
   

   (€ million)

   Number of

   shares outstanding

   Share capital

   Additional paid-in capital

   Deeply subordinated securities and OCEANE

   Treasury shares

   Consolidated reserves and

   retained earnings

   Foreign exchange translation reserves

   Fair value reserves

   Equity attributable to owners

   of the Company

   Non-controlling interests

   Total equity

   Amount as of December 31, 2024	740,652,608	3,703	9,902	3,337	-383	-3,722	-260	337	12,915	2,391	15,306
   Issues of share capital of the parent company	142,200	1	-1	–	–	–	–	–	–	–	–
   Proceeds on issue of deeply subordinated securities / Repayments of deeply subordinated securities	–	–	–	515	–	-18	–	–	497	–	497
   Coupons on deeply subordinated securities	–	–	–	-94	–	–	–	–	-94	–	-94
   Parent company dividend distribution	–	–	–	–	–	-1,023	–	–	-1,023	–	-1,023
   Movements in treasury shares	–	–	–	–	9	–	–	–	9	–	9
   Share-based payments	–	–	–	–	–	21	–	–	21	–	21
   Third-party share in share capital increases of subsidiaries	–	–	–	–	–	–	–	–	–	1	1
   Third-party share in dividend distributions of subsidiaries	–	–	–	–	–	–	–	–	–	-150	-150
   Transactions with non-controlling interests	–	–	–	–	–	-1,374	–	–	-1,374	-120	-1,494
   Total	142,200	1	-1	421	9	-2,394	–	–	-1,964	-269	-2,233
   Other comprehensive income	–	–	–	–	–	6	-1,132	-4	-1,130	-121	-1,251
   Net income (loss) for the period	–	–	–	–	–	657	–	–	657	229	886
   Total comprehensive income for the period	–	–	–	–	–	663	-1,132	-4	-473	108	-365
   Other movements	–	–	–	–	–	8	–	–	8	4	12
   Amount as of June 30, 2025	740,794,808	3,704	9,901	3,759	-374	-5,445	-1,392	333	10,486	2,234	12,720

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

   ‌(€ million)

   Number of

   shares outstanding

   Share capital

   Additional paid-in capital

   Deeply subordinated securities

   Treasury shares

   Consolidated reserves and

   retained earnings

   Foreign exchange translation reserves

   Fair value reserves

   Equity attributable to owners

   of the Company

   Non-controlling interests

   Total equity

   Amount as of December 31, 2025	741,723,437	3,709	9,895	3,831	-438	-5,045	-1,402	305	10,855	2,409	13,264
   Issues of share capital of the parent company	773,213	4	-4	–	–	–	–	–	–	–	–
   Proceeds on issue of deeply subordinated securities / Repayments of deeply subordinated securities	–	–	–	–	–	–	–	–	–	–	–
   Coupons on deeply subordinated securities	–	–	–	-87	–	–	–	–	-87	–	-87
   Parent company dividend distribution		–	–	–	–	-1,099	–	–	-1,099	–	-1,099
   Movements in treasury shares	–	–	–	–	10	–	–	–	10	–	10
   Share-based payments	–	–	–	–	–	25	–	–	25	–	25
   Third-party share in share capital increases of subsidiaries	–	–	–	–	–	–	–	–	–	2	2
   Third-party share in dividend distributions of subsidiaries	–	–	–	–	–	–	–	–	–	-208	-208
   Transactions with non-controlling interests	–	–	–	–	–	1	–	–	1	4	5
   Total	773,213	4	-4	-87	10	-1,073	–	–	-1,150	-202	-1,352
   Other comprehensive income	–	–	–	–	–	43	380	53	476	72	549
   Net income (loss) for the period	–	–	–	–	–	682	–	–	682	245	927
   Total comprehensive income for the period	–	–	–	–	–	725	380	53	1,158	317	1,475
   Other movements	–	–	–	–	–	11	–	–	11	100	111
   Amount as of June 30, 2026	742,496,650	3,712	9,891	3,744	-428	-5,381	-1,022	358	10,874	2,624	13,499

   Amounts are in millions of euros rounded to the nearest whole number, unless stated otherwise in the notes. Accordingly, the sum of rounded amounts may present non-material differences with total figures.

   A dividend per share of €1.50 was distributed in 2026, compared with €1.40 in 2025.

   The total dividends paid recorded in the Consolidated Cash Flow Statement for the periods ended June 30, 2026, and June 30, 2025, respectively, breaks down as follows:

   (€ million) June 30, 2025 June 30, 2026

   Parent company dividend distribution	-1,023	-1,099
   Third party share in dividend distributions of subsidiaries	-150	-208
   Scrip dividend	–	–
   TOTAL DIVIDEND PAID	-1,173	-1,307

   
   Table of contents

6. 
   ‌NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   

   Note 1	ACCOUNTING POLICIES AND METHODS	12
   Note 2	USE OF MANAGEMENT ESTIMATES IN THE APPLICATION OF GROUP ACCOUNTING STANDARDS	14
   Note 3	CONSOLIDATION SCOPE	15
   Note 4	REPORTING BY OPERATING SEGMENT	16
   Note 5	OPERATING ACTIVITIES	17
   Note 6	GOODWILL, INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT	22
   Note 7	FINANCING AND FINANCIAL INSTRUMENTS	26

   Note 8	EQUITY AND EARNINGS PER SHARE	32
   Note 9	PROVISIONS	34
   Note 10	INCOME TAX EXPENSE	35
   Note 11	CONTINGENT ASSETS AND LIABILITIES	36
   Note 12	RELATED PARTY TRANSACTIONS	39
   Note 13	SUBSEQUENT EVENTS	39
   Note 14	MAIN COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS	39

‌ACCOUNTING POLICIES AND METHODS‌

The Group’s activities are, by nature, subject to seasonal changes and climatic conditions. As such, in the Energy Services business, the majority of operating income is realized in the first and fourth quarters, corresponding to heating periods in Europe. In the Water business, water consumption for domestic use and wastewater treatment are higher between May and September in the Northern hemisphere, where the Group conducts most of its activity.

Accordingly, the interim results of the Group for the half year ended June 30, 2026 and certain key performance indicators such as working capital reflect the impact of these combined factors and therefore may not be extrapolated over the whole year.

‌USE OF MANAGEMENT ESTIMATES IN THE APPLICATION OF GROUP ACCOUNTING STANDARDS‌

Veolia may be required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosures of contingent assets and liabilities. Future results may be different from these estimates.

The Group’s main judgments and estimates are described in Note 2 to the consolidated financial statements for the year ended December 31, 2025 and remain applicable to the financial statements for the half year ended June 30, 2026. More specifically, when preparing the half-year consolidated financial statements, the Group focused specifically on recognized deferred tax assets and liabilities as well as the income tax expense: pursuant to IAS 34, the income tax expense is calculated by applying the estimated effective annual tax rate to the pre-tax income of the period, adjusted for any one-off items (Note 10).

Finally, Veolia is still committed to fighting pollution and accelerating ecological transition (see 2025 URD). Management therefore includes in its closing process the possible impacts of its action plans, as described in Note 2 to the consolidated financial statements for the year ended December 31, 2025.

‌CONSOLIDATION SCOPE‌

‌REPORTING BY OPERATING SEGMENT‌

The operating segments are components of the Group that engage in activities and whose operating results are reviewed by the Chief Executive Officer (Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance. Information presented to the Chief Operating Decision Maker is taken from the Group internal reporting system.

Financial information by operating segment is prepared in accordance with the same rules used to prepare the Consolidated Financial Statements.

In accordance with the provisions of IFRS 8 on the identification of operating segments and after taking account of regrouping criteria, the operating segments presented are the following:

The EBITDA indicator comprises the sum of all operating income and expenses received and paid (excluding restructuring costs, non-current impairment losses, renewal expenses and share acquisition and disposal costs) and principal payments on operating financial assets.

The main financial indicators by operating segment are as follows:

1ˢᵗ semester 2026
		Americas, Asia		France &
(€ million)	Water Technologies	Pacific, Africa Middle-East	Europe	Hazardous Waste Europe	Other	Total consolidated financial statements

Revenue	2,213	5,747	9,905	4,318	10	22,193
EBITDA	294	991	1,499	676	92	3,552
Operating income after share of net income (loss) of equity-accounted entities	144	492	851	185	60	1,732
Industrial investments net of subsidies	-62	-551	-411	-217	-6	-1,247

1ˢᵗ semester 2025
		Americas, Asia		France &
(€ million)	Water Technologies	Pacific, Africa Middle-East	Europe	Hazardous Waste Europe	Other	Total consolidated financial statements
Revenue	2,409	5,533	9,733	4,371	2	22,048
EBITDA	299	894	1,456	653	65	3,367
Operating income after share of net
income (loss) of equity-accounted entities	160	491	845	188	-17	1,667
Industrial investments net of subsidies	-60	-526	-509	-196	-2	-1,293

The EBITDA indicator reconciles with operating cash flow for the first half years of 2026 and 2025 as follows:

(€ million) 1ˢᵗ semester of 2025 1ˢᵗ semester of 2026

Operating cash flow before changes in working capital	(A)	3,008	3,159
o/w Operating cash flow from financing activities	(B)	-27	-7
o/w Adjusted operating cash flow	(C) = (A) – (B)	3,034	3,166
Less :	(D)
Renewal expenses		157	150
Restructuring costs		40	52
Share acquisition and disposal costs		10	49
Other items		45	51
Plus :	(E)
Principal payments on operating financial assets		82	84
EBITDA	(C) + (D) + (E)	3,367	3,552

‌OPERATING ACTIVITIES‌

These commitments mainly consist of commitments received from our partners in respect of construction contracts. Commitments received total €1,021 million as of June 30, 2026, compared with €1,102 million as of December 31, 2025.

‌GOODWILL, INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT‌

In accordance with the Lease standard (IFRS 16), the Group applies a single recognition method for all lease contracts, except for short-term leases (duration of 12 months or less) and leases of assets with a low value (less than US$5,000).

Right of use breaks down by operating segment as follows:

(€ million)

Net carrying amount as of

December 31, 2025 Gross carrying amount

As of June 30, 2026 Depreciation and

impairment losses Net carrying amount

Water Technologies	159	416	-253	162
Americas, Asia Pacific, Africa Middle-East	448	1,181	-501	681
Europe	642	1,280	-662	618
France & Hazardous Waste Europe	488	1,074	-599	475
Other	69	275	-217	57
RIGHT OF USE	1,806	4,225	-2,232	1,994

Movements in the net carrying amount of the right of use during the first half of 2026 are as follows:

(€ million) As of December 31, 2025 As of June 30, 2026

Right of use	3,938	4,226
Depreciation and impairment losses	-2,132	-2,232
RIGHT OF USE, NET	1,806	1,994

Additions of €253 million mainly concern the Europe segment (€82 million), the France and Hazardous Waste Europe segment (€77 million), and the Americas, Asia Pacific, Africa Middle-East segment (€63 million).

Depreciation totals -€272 million in the first half of 2026 and mainly breaks down as follow:

• land: -€23 million;

• buildings: -€120 million;

• technical installations, plant and equipment: -€23 million;

• rolling stock: -€89 million.

They mainly concern the Europe segment (-€87 million), the France and Hazardous Waste Europe segment (-€77 million), and the Americas, Asia Pacific, Africa Middle-East segment (-€68 million).

The €221 million in changes in consolidation scope are mainly linked to the acquisition of Clean Earth in the United States for €226 million.

Sub-lease revenue associated with right-of-use assets is not material.

‌FINANCING AND FINANCIAL INSTRUMENTS‌

As of June 30, 2026, the Group has given €408 million of collateral guarantees in support of financial liabilities, compared with €400 million as of December 31, 2025. They mainly relate to long-term refinancing by Chinese entities with Minsheng and CMB banks against asset backing of

€370 million.

‌EQUITY AND EARNINGS PER SHARE‌

Veolia Environnement manages its share capital within the framework of a prudent and rigorous financial policy that seeks to ensure easy access to French and international capital markets, to enable investments in projects that create value and provide shareholders with a satisfactory remuneration, while maintaining an “Investment Grade” credit rating.

On May 28, 2019, Veolia Environnement entered into a liquidity contract, in accordance with the applicable legal provisions, with Kepler Cheuvreux, effective June 1, 2019, for an initial period expiring on December 31, 2019, tacitly renewable thereafter for periods of one year.

Half-year liquidity contract statement of this liquidity contract is available on the company’s website(1).

(1) veolia.com/en/veolia-group/finance/financial-information/press-releases/pr-half-year-liquidity-contract-statement

‌PROVISIONS‌

Movements in non-current and current provisions in the first six months of 2026 are as follows:

(€ million) As of December 31, 2025 As of June 30, 2026

Provisions excluding pensions and other employee benefits	3,181	2,900
Provisions for pensions and employee benefits	740	727
TOTAL PROVISIONS	3,921	3,627
NON-CURRENT PROVISIONS	2,661	2,710
CURRENT PROVISIONS	1,260	917

Provisions excluding employee-related commitments primarily comprise, as of June 30, 2026, provisions for closure costs and post-closure costs (site rehabilitation, dismantling) of €1,290 million, principally accounted for in the Americas, Asia Pacific, Africa Middle-East segment for €472 million, in the France and Hazardous Waste Europe segment for €461 million and in the Europe segment for €328 million.

‌INCOME TAX EXPENSE‌

The 2024 Finance Act (Article 33 of Law no. 2023-1322 of December 29, 2023) enacted the Pillar 2 Directive (Council Directive (EU) 2022/2523 of December 14, 2022) which aims to introduce a global minimum tax. Due to the amount of its revenue, the Group falls within the scope of this new legislation.

The Group has determined that, for the interim financial statements as of June 30, 2026, the financial impact of this tax, which has been recognized in the tax expense, is not material.

In accordance with the temporary exemption introduced by the amendment to IAS 12 in May 2023, no deferred tax has been recognized in this regard.

‌CONTINGENT ASSETS AND LIABILITIES‌

Management has exercised its judgment with regard to the assessment of risks related to judicial, administrative, or arbitration proceedings concerning the Group. In light of the uncertain nature of the outcome of these proceedings, and in accordance with the criteria of IAS 37, these risks may have resulted in the recognition of a provision or, as applicable, a receivable as of June 30, 2026.

The main contingent assets and liabilities relating to legal, administrative or arbitration proceedings are presented below:

North America

United States – Water – Flint

In February 2015, the city of Flint (Michigan, USA, hereafter “Flint”) hired a U.S. subsidiary of the Company, Veolia Water North America Operating Services (“VWNAOS”), to conduct a study on the residual effects of the chlorination process on the color of its drinking water, its taste and its odor. This one-time review, invoiced at USD 40,000, was completed in approximately four weeks.

On February 18, 2015, VWNAOS issued an interim report based, among other things, on tests performed exclusively by Flint, which showed compliance with the Lead & Copper Rule. The same day, during a meeting organized by the Flint City Council Public Works Committee, VWNAOS employees communicated to the public the results of their interim report.

On March 12, 2015, VWNAOS’ final report was delivered to Flint, which was subsequently made available to the public. In its report, VWNAOS issued a certain number of recommendations including, notably, the development of a corrosion control plan. Flint ignored most of these recommendations until late 2015, when the State ordered the implementation of certain measures, in response to the revelation of the existence of lead in distributed water.

Legal Proceedings

Since February 2016, numerous individual actions and putative class actions were filed in state and federal courts in Michigan by Flint residents against a number of defendants, including the State of Michigan, the Michigan Department of Environmental Quality, Flint, LAN (another engineering firm acting as the city’s principal consultant at the time) and three American subsidiaries of the Company: Veolia North America Inc., VWNAOS and Veolia North America LLC (hereafter “VNA”).

Although the Company has been named in several individual or class actions, it has not been served and is not a defendant in any of these actions; only the three U.S. subsidiaries are.

In February 2022, the first trial for four plaintiffs began in federal court. On August 11, 2022, the judge declared a mistrial, on account of the jury’s failure to reach a unanimous verdict.

Over the course of 2024 and 2025, VNA and the Company signed several settlement agreements with different plaintiff groups and the Michigan Attorney General, resulting in payments totalling approximately USD 79 million. As a result, virtually all actions brought before the state and federal courts in Michigan have been dismissed with prejudice and the plaintiffs have fully waived all rights to bring actions against VNA and the Company in relation to the case. Only a remainder of about 350 individual plaintiffs is not covered by these settlements. To date, none of these plaintiffs have come forward to request the scheduling of a new trial and no timetable has been set to move forward with any of these cases.

Insurance

These lawsuits were declared to the insurers. Some of the insurers, relying on an exclusion clause contained in their policies, made it known that they did not intend on covering any damages caused by lead.

The Group strongly contests this position, contending that this exclusion is inapplicable to the current situation and, in any event, the clause is void as it is contrary to both the mandatory rule of Article L. 113-1 of the French Insurance Code – which requires that an exclusion clause shall be “formal and limited” – and to relevant case law.

In June 2023, the Company and VNA filed a request for arbitration in order to resolve their dispute with one of their insurers. In October 2025, an agreement bringing the arbitration to a full and final settlement was reached.

In November 2025, the Company and VNA initiated proceedings against another of their insurers before the Paris Commercial Court (Tribunal des activités économiques de Paris). These proceedings are currently pending.

Central and Eastern Europe

Lithuania – Energy

Between 2000 and 2003, the Lithuanian subsidiaries of the Group, UAB Vilniaus Energija (“UVE”) and UAB Litesko (“Litesko”), signed a number of contracts with Lithuanian cities, of which the most significant was with the city of Vilnius (“Vilnius”) in 2002 to rent, operate and modernize the heating and electricity production and distribution infrastructure. The Group made significant investments over the years for which it expects the cost incurred to be taken into account and a return on its investment.

Since 2009, the government of Lithuania publicly, and on numerous occasions, accused the Group of being responsible for high heating prices by waging a sustained campaign against it. Several steps were thus taken by the public authorities against the Lithuanian subsidiaries of the Group, among others:

• a EUR 19 million fine imposed on UVE by the Competition Council;

• the transfer of ownership without compensation of the individual heat exchange sub-stations invested by UVE;

• the unilateral reduction of the heating prices to capture the savings realized with the help of a smoke condenser invested by UVE;

• the retroactive annulment of the heating prices applied by UVE for the period 2011-2015;

• the annulment of the amendments extending the duration of the contract concluded between Litesko and the city of Alytus and the transfer to Alytus of the assets invested by Litesko.

All the harmful decisions taken against the Lithuanian subsidiaries of the Group are subject to pending challenges or appeals before the local courts.

In this context, the Company and its subsidiaries also had to initiate the arbitral proceedings described below.

The first arbitration, initiated under the auspices of the Stockholm Chamber of Commerce (“SCC”), resulted in a ruling issued on November 30, 2023, which is now final.

In the second arbitration, the Company, Veolia Energie International (successor in law to Veolia Baltics and Eastern Europe), UVE and Litesko (collectively “the Companies”) filed a request for arbitration against Lithuania before the International Center for Settlement of Investment Disputes (“ICSID”) in January 2016. The Companies’ claim amounts to circa EUR 76 million (not including interest). For its part, Lithuania withdrew its EUR 150 million counterclaim, following the judgment rendered by the Court of Justice of the European Union on 6 March 2018 in the Achmea case, which held that arbitration clauses contained in intra-EU bilateral investment treaties are incompatible with European Union law.

In July 2020, Lithuania initiated a legal action against the Companies and other respondents before the Vilnius regional court, by which it seeks compensation for damages worth over EUR 240 million. Lithuania has indicated that this action is a transfer of the counterclaims it previously withdrew from the ICSID arbitration. The Companies vigorously contest Lithuania’s claims. Following several divergent rulings by the Lithuanian courts, Lithuania’s claim was finally declared admissible in October 2023. After several months of suspension, the proceedings on the merits resumed early 2025 before the Vilnius Regional Court.

In mid-July 2025, the Companies and Lithuania signed a settlement agreement aiming at amicably resolving both the ICSID arbitration and the pending proceedings before the Vilnius Regional Court. Under the terms of the agreement, the Companies undertake to pay Lithuania a lump sum of EUR 35 million, subject to certain conditions. This settlement does not constitute any admission of liability on the part of the Companies.

In September 2025, Lithuania received the EUR 35 million; pursuant to the above-mentioned settlement, the parties withdrew from the ICSID arbitration in October 2025 and the Vilnius Court of Appeal acknowledged the withdrawal of the Companies as defendants in the proceedings, as well as the reduction of Lithuania’s claims to EUR 51.7 million. This decision is final. However, the Vilnius court granted the co-defendants’ request to include the Companies as third parties in the proceedings, which remain pending.

Italy – Africa Middle East

Veolia Propreté vs. Republic of Italy

In October 2007, Veolia Propreté made very significant investments in Italy through long-term concession contracts for the construction and management of waste recovery and power generation facilities in the regions of Calabria and Tuscany. The Italian subsidiaries of Veolia Propreté were unable to execute the concession contracts due to the serious failures of the Italian authorities. In 2014, these actions caused the subsidiaries’ bankruptcy and the loss of Veolia Propreté’s investment.

In June 2018, Veolia Propreté commenced an arbitration against the Republic of Italy before the International Centre for Settlement of Investment Disputes (“ICSID”) alleging breaches of the Energy Charter Treaty. The arbitral tribunal was constituted in January 2019. Veolia Propreté claimed an amount of approximately EUR 400 million plus interests. On 26 September 2025, the tribunal issued an award ordering Italy to pay Veolia Propreté approximately EUR 86 million, plus pre-award and post-award interests, together with half the costs of proceeding.

In November 2025, Veolia Propreté filed a request with ICSID for a supplementary decision, arguing that the tribunal failed to address interest on historical losses for the period 2007-2011, amounting to approximately EUR 12 million. By decision of 11 May 2026, the ICSID tribunal granted the supplementary decision request, increasing the award from EUR 86 million to EUR 95.1 million, plus interest.

In September 2021, the Court of Justice of the European Union in the Komstroy case ruled that the investor-state dispute settlement mechanism provided for in the Energy Charter Treaty is incompatible with EU Law and does not apply to intra-EU disputes. This development may affect the enforcement of the award.

Water technologies

VWT v. K+S Potash

On December 1, 2012, Veolia Water Technologies, Inc. (“VWT”) signed a CAD 324.5 million contract with K + S Potash Canada GP (“KSPC”) for the design, supply and commissioning of an evaporation and crystallization system, which includes 14 large evaporators and crystallizers (the “Tanks”), for a potash mine then under construction by KSPC in the province of Saskatchewan, Canada. In this framework, a letter of guarantee at first request was issued by VWT to the benefit of KSPC in the amount of USD 14.6 million.

On July 17, 2016, during the process of commissioning the Tanks, one tank collapsed (the “Incident”). A new replacement tank had to be manufactured and installed. The Incident also damaged other Tanks and plant equipment, which had to be removed and replaced. VWT cooperated with KSPC to determine the cause of the incident. The first investigations, conducted by KSPC, identified a defect in the design of the metal structure supporting the Tanks, for which VWT and one of its subcontractors were responsible. Subsequently, additional expert assessments conducted by VWT, however, found a defect in the production of the concrete bases to which the metal structure supporting the Tanks was affixed. These concrete bases were in turn built by a subcontractor of KSPC. VWT has repaired the damaged Tanks. These repairs resulted in significant contractual changes and additional costs. Mid-June, 2017, a second letter of guarantee at first request was issued by VWT to KSPC in the amount of USD 15 million.

Several procedures are currently in progress.

ADRIC Arbitration Procedure (ADR Institute of Canada)

On August 18, 2017, VWT filed a complaint with the ADRIC seeking KSPC’s reimbursement of the costs incurred by the contractual modifications made to carry out repairs linked to the Incident, i.e. USD 19 million. On January 18, 2019, the arbitral tribunal accepted jurisdiction over only some claims (approximately USD 13.6 million). This procedure is stayed due to proceedings initiated by KSCP before the Court of King’s Bench for Saskatchewan (see below).

Legal Proceedings (the Court of King’s Bench for Saskatchewan and Paris Commercial Court)

On April 6, 2018, KSPC brought claims against VWT before the Court of King’s Bench for Saskatchewan in the amount of CAD 200 million -currently quantified at CAD 168.5 million (approximately EUR 103.6 million) – for consequential damages and additional costs of repair in relation to the Incident. In mid-January 2019, VWT made a settlement offer to KSPC who refused the offer.

On May 28, 2018, one of KSPC’s subcontractors, AECON, sued KSPC before the Court of King’s Bench for various claims for damages. On June 28, 2018, KSPC joined VWT as a third party to the proceedings in an attempt to require VWT to indemnify KSPC for a minimum of CAD 467 million – amount currently quantified at CAD 103.1 million (approximately EUR 63.5 million) – as well as reimbursement of sums already paid by KSPC to other subcontractors (the “Delay Claim”).

On March 25, 2020, KSPC brought claims against VWT before the Court of King’s Bench for Saskatchewan for an amount quantified to date at CAD 80 million (approximately EUR 50 million). These new claims include an equipment failure that occurred in November 2018 and alleged corrosion in specific materials of the plant. In June 2020, VWT filed a statement of defense before this court and contested these new claims.

In November 2019 and 2020, respectively, KSPC received payment under the letters of guarantee.

The Group strongly contests the merits of all these legal proceedings.

These lawsuits have been notified to professional liability insurance companies.

VWT v. Antero

In August 2015, Veolia Water Technologies Inc. (“VWT”) and Antero Resources Corporation (“Antero”) entered into a Design Build Agreement (“DBA”) for a revised contract sum of USD 255.8 million for the treatment of water associated with the drilling, production and general development of shale gas at the Clearwater facility located in Pennsboro West Virginia (“Facility”).

VWT achieved the substantial completion of the Facility on March 15, 2019. The Facility was fine-tuned over the following months. The final performance test was scheduled to begin on September 16, 2019 but, by a letter dated September 12, 2019, Antero terminated the DBA. VWT considers this termination to have been made without proper contractual notice or a valid reason.

On March 13, 2020 VWT filed suit against Antero in the State District Court, City and County of Denver, Colorado, in the United States, alleging breach of contract and seeking damages of USD 118 million. On the same day and in front of the same tribunal, Antero filed suit against VWT and claimed that VWT breached its contractual obligations under the DBA. In this lawsuit, Antero asserts claims under theories of fraud and breach of contract. It claims alternatively USD 451 million or USD 367 million in damages based on different valuation methods.

VWT’s claims have been consolidated with Antero’s claims. By a final judgment dated January 27, 2023, the State District Court, City and County of Denver, Colorado ordered VWT to pay to Antero on the grounds of fraud and breach of contract, a principal amount of USD 242 million, plus interests (such interests including USD 67 million of pre-judgment interests) and Antero’s fees and costs. By a revised judgment dated May 3, 2023, reflecting the outcome of a post-trial motion successfully filed by VWT, the principal amount of the judgment was reduced to USD 215 million and the pre-judgment interests were reduced to USD 65 million. The effects of the judgment were stayed.

At the end of May 2023, VWT appealed the decision before the Colorado Court of Appeals. In June 2023, Antero filed a cross appeal. On December 19, 2024, the Court of Appeals upheld the judgment. In March 2025, VWT filed a petition before the Supreme Court of Colorado. In June 2026, the Supreme Court of Colorado affirmed the appellate court’s decision.

This dispute was reported to the insurers, who issued coverage reservations. One of them, after initially accepting to cover the legal expenses in connection with those proceedings, initiated arbitral proceedings in October 2021 to be released from its coverage obligation. On July 10, 2023, the arbitral tribunal dismissed the insurer’s claim and ruled that the insurer’s dispute of its coverage obligation was ill-grounded.

The amount of the judgment, excluding legal fees for appeal, was paid on July 24, 2026, for a total of USD 377.7 million. An initial indemnification request has been sent to the insurers.

‌RELATED PARTY TRANSACTIONS‌

The Group identifies related parties in accordance with the provisions of paragraph 9 of IAS 24 revised, Related Party Disclosures.

To the Company’s knowledge, as of June 30, 2026, except for relations with joint ventures (see Note 5.2.1) and compensation and related benefits of key management (see Note 6.4 to the 2025 consolidated financial statements), there were no other related party transactions.

‌SUBSEQUENT EVENTS‌

No significant event has occurred between the closing date and the date of the approval of the consolidated financial statements by the board of directors.

‌MAIN COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS‌

As of June 30, 2026, Veolia Group consolidated or accounted for a total of 1,927 companies, compared with 1,870 companies as of December 31, 2025.

‌Veolia Environnement

A Public Limited Company (Société Anonyme) with a share capital of 3,712,483,250 euros 403 210 032 RCS Paris

Administrative headquarters:

30, rue Madeleine Vionnet – 93300 Aubervilliers – France

Tel.: +33 (0)1 85 57 70 00

Registered office:

21, rue La Boétie – 75008 Paris – France

https://www.veolia.com

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Veolia Environnement SA published this content on July 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 30, 2026 at 05:39 UTC.