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

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

• 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.

• EBITDA increased by €117 million year-over-year.

• International revenue grew 18.2% year-over-year, now representing nearly 40% of Contracting revenue.

Outlook and guidance

• 2024 outlook confirmed: further revenue growth and improved Contracting results expected, though organic growth will be less than in 2023.

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

• Strong visibility for the next two years, with a robust order book and major contracts in place.