Bouygues (EN) Q2 2024 earnings summary

Executive summary

• Group sales rose 1% year-over-year to €26.5bn in H1 2024, mainly driven by Equans and Bouygues Construction, with COPA up 3% to €747m and net profit attributable to the Group at €186m, down €39m year-on-year.

• Net debt improved significantly to €8.7bn at end-June 2024, a year-over-year improvement of €1.9bn, with net gearing down 13 points to 65%.

• Construction backlog remains at a very high level, providing strong visibility for future business.

• The group maintains a solid financial structure and high liquidity, with €13.6bn available at the end of June.

• 2024 outlook confirmed: sales and COPA expected to be slightly up on 2023, despite challenging environments in some segments.

Financial highlights

• Group sales for H1 2024 reached €26.5bn, up 1% year-over-year; COPA increased by €20m to €747m (+3% yoy); net profit attributable to the Group was €186m, down €39m from H1 2023.

• EBITDA after leases was €1,528m (down €44m year-on-year); operating profit €596m (down €5m year-on-year).

• Net debt at end-June 2024 was €8.7bn, improved from €10.6bn at end-June 2023.

• Free cash flow before working capital requirements improved to €205m from €11m in H1 2023; free cash flow (excl. frequencies) was €211m.

• Net income group share was €186m, down €39m from H1 2023.

Outlook and guidance

• 2024 guidance confirmed: sales and COPA expected to be slightly up on 2023, maintaining a robust financial structure.

• Equans targets a COPA margin close to 4% in 2025 and 5% in 2027, with organic revenue growth acceleration expected from 2025.

• Bouygues Telecom aims for growth in sales billed to customers, EBITDA after leases above €2bn, and gross capex around €1.5bn for 2024.

• TF1 expects to maintain a COPA level close to 2023, stable margins, and continued digital growth, supporting a growing dividend policy.

• Bouygues Immobilier to remain challenged, with adaptation measures expected to show results from late 2024.