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%), driven by international expansion and energy systems, 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% year-over-year, mainly due to the new tax.

• Free cash flow was €148 million, positive in H1 for the first time, despite higher working capital requirements and the new tax.

• The 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 revenue, up from 35% last year, driven by acquisitions and organic growth in Europe.

Financial highlights

• Operating profit on ordinary activities was €997 million, down 1.2% year-over-year, mainly due to a €60 million new tax on transport infrastructure.

• Net financial debt remained stable at €10.6 billion; liquidity at holding and Contracting was €3.8 billion, APRR liquidity €3.2 billion.

• Group operating margin was 9.0% (down from 9.7% in H1 2023); Contracting margin 2.2% (up from 2.1%); Energy Systems margin 4.6% (up from 4.3%).

• Concessions EBITDA margin: 72.4% for APRR/AREA; 78.7% for motorway concessions.

• Earnings per share (basic): €4.06 (vs. €4.11 in H1 2023).

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 tax; net profit group share expected to be similar to 2023.

• Strong multi-year visibility, especially in building and energy services, supported by a robust order book.