Veolia (VIE) Q2 2024 earnings summary

Executive summary

• H1 2024 delivered strong results with revenue up 4.4% (excluding energy prices), EBITDA up 5.7%, and current net income up 15.2% year-over-year, reflecting robust operational performance and successful execution of the GreenUp strategic plan.

• Performance fully aligns with the GreenUp 2024-2027 strategic program, confirming guidance and value creation objectives.

• Over €1 billion in non-strategic asset divestitures and targeted acquisitions in priority activities contributed to value creation.

• Veolia became the first company to receive double validation from SBTI and Moody's for its climate commitments.

• Positive trends are expected to continue in H2 2024.

Financial highlights

• Revenue reached €22,141 million, up 4.4% organically (excluding energy prices); like-for-like growth was 0.4%.

• EBITDA was €3,266 million, up 5.7% like-for-like.

• Current EBIT rose 6.6% to €1,730 million.

• Current net income (Group share) increased 15.2% to €731 million; net income Group share up 24.6% to €651 million.

• Net financial debt at €19,891 million, leverage ratio expected below 3x by year-end.

• Free cash flow improved in Q2 by €389 million to -€284 million for H1.

Outlook and guidance

• 2024 guidance fully confirmed: organic revenue growth (ex-energy), EBITDA growth 5–6%, current net income above €1.5 billion, leverage below 3x, and dividend growth in line with EPS.

• Efficiency gains above €350 million and cumulative synergies from Suez integration expected to exceed €400 million by end-2024.

• GreenUp 2024-2027 targets reaffirmed: over €8 billion EBITDA in 2027, ~10% annual net income growth, and ambitious decarbonization, regeneration, and depollution goals.