Eiffage (FGR) H1 2024 earnings summary

Executive summary

• Revenue rose 6.3% year-over-year to €11.1 billion in H1 2024, with strong growth in Contracting (+6.5%) and Concessions (+5.6%), despite a challenging property development market and the impact of a new tax on transport infrastructure.

• Net profit group share was €382 million, down 2.6% from H1 2023, mainly due to the new tax.

• Contracting order book surged 43% year-over-year to €28.4 billion, providing strong medium- and long-term visibility.

• International business now represents nearly 40% of Contracting, up from 35% last year, driven by acquisitions and organic growth in Europe.

• Eiffage Énergie Systèmes completed five acquisitions in France, Germany, and the Netherlands; Eqos acquisition closing expected in Q4.

Financial highlights

• Revenue: €11.1 billion (+6.3% year-over-year); Contracting: €9.2 billion (+6.5%); Concessions: €1.9 billion (+5.6%).

• Operating profit on ordinary activities was €997 million, down 1.2% year-over-year, with a margin of 9.0% (vs. 9.7%).

• Net profit group share: €382 million (-2.6% year-over-year).

• Free cash flow was €148 million, down from 2023 due to working capital requirements and the new tax, but positive in H1 for the first time.

• Net financial debt remained stable at €10.6 billion; liquidity at holding and Contracting was €3.8 billion.

Outlook and guidance

• 2024 outlook confirmed: organic growth in Contracting expected to slow versus 2023, but results to improve.

• Concessions results to remain impacted by the new tax; net profit group share expected to be similar to 2023.

• Strong multi-year visibility, especially in building and energy services, with a robust order book and major contracts in place.