Bureau Veritas (BVI) investor relations material

Strategic progress, vision, and transformation

• LEAP | 28 strategy, launched in 2024, is driving a comprehensive transformation focused on portfolio, performance, and people, aiming for mid to high single-digit organic growth and margin expansion by 2028.

• Portfolio rotation has shifted approximately 21% of revenue between 2024–2026, with €1.2 billion in acquisitions/divestments, and a new operating model centered on four divisions and ten product lines.

• Divestments in Oil & Petrochemicals, Coal Testing, and Government Services sharpen focus on higher-growth, higher-margin segments, with revenue mix shifting toward Buildings & Infrastructure, Industrials & Commodities, Business Assurance, and Product Testing & Services by 2026.

• AI is a central accelerator, with ambitions to generate €1 billion in AI-driven revenue by 2030, integrating AI into 30% of operations by 2028 and 60% by 2030.

• Sustainability, defense, AI-driven markets, and mining are prioritized as transversal growth engines, with sustainability targeted to reach 15% of group revenues by 2028.

Financial performance and guidance

• Delivered organic growth above 7% in recent years, with 2025 revenue at €6.5 billion, adjusted operating profit at €1 billion, and free cash flow of €824 million.

• Upgraded total revenue CAGR to double-digit for 2027–2028, with consistent margin improvement and adjusted operating margin expected to rise by up to 180 basis points by 2028.

• Cash conversion above 90% and leverage guidance narrowed to 1.5–2x net debt/EBITDA by 2028.

• Return on invested capital has risen from 16% in 2017 to nearly 25% in 2025, with ambition above 20% through the cycle.

• Dividend payout ratio is 65% of adjusted net income, with CapEx at the low end of 2.5% of revenue and double-digit shareholder returns targeted.

Operational and organizational initiatives

• Performance-led execution programs have delivered significant margin gains through operational leverage, functional scalability, and digital transformation, with up to 180 basis points of improvement targeted by 2028.

• SmartCert and other digital operation systems are standardizing workflows, reducing manual tasks, and enabling AI integration, with 60% deployment to date and full rollout by 2027.

• Shared Service Centers and digital workflows drive productivity, with 43% of functional workforce centralized and 63% of production workforce impacted.

• People strategy centers on building and scaling expertise, with a new operating model, leadership framework, and targeted programs for AI and sustainability skills, supported by a global workforce of 82,000 and over 64,000 technical experts.

• Employee mobility and retention have improved, with programs like the Sustainability Graduate Program and AI Spark initiative expanding critical capabilities.