Bureau Veritas (BVI) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 results with revenue of €3,021.7m, up 4.0% year-over-year and 9.2% organically, with strong performance across all business lines and regions, especially in sustainability and energy transition services.

• Adjusted operating profit rose 4.1% to €451.9m, with a 15.0% margin (up 33 bps at constant currency); adjusted net profit up 4.3% to €288.3m, and adjusted EPS up 4.5% to €0.64.

• Free cash flow increased 44% year-on-year to €189.9m, reflecting disciplined capital allocation and working capital management.

• Upgraded full-year 2024 outlook to high single-digit organic revenue growth, with margin improvement at constant currency and strong cash conversion above 90%.

• Four bolt-on acquisitions and a €200m share buyback completed; inaugural €500m A3-rated bond issued.

Financial highlights

• Revenue: €3,021.7m (+4.0% y/y, +9.2% organic); Q2 organic growth 10.4%.

• Adjusted operating profit: €451.9m (+4.1% y/y, +11.7% at constant currency); margin stable at 15.0%.

• Adjusted net profit: €288.3m (+4.3% y/y, +16.1% at constant currency); adjusted EPS: €0.64 (+4.5% y/y, +16.3% at constant currency).

• Free cash flow: €189.9m (+44% y/y, +65% at constant currency).

• Net debt/EBITDA at 1.06x at end of June 2024.

Outlook and guidance

• Upgraded 2024 guidance to high single-digit organic revenue growth (from mid- to high single-digit).

• Adjusted operating margin expected to improve at constant currency; cash conversion above 90%.

• H2 organic revenue growth expected to be broadly similar to H1.