Veolia Environnement (VIE) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 results show strong growth and operational performance, with revenue up 5.1% to €32.5 billion and EBITDA up 5.6% to €4,936 million, supported by the GreenUp plan and robust booster activities.

• Water Technologies and Hazardous Waste segments led growth, with Water Technologies revenue up 13.5% and hazardous waste up 6.2%.

• Operational efficiency and synergy targets exceeded, with €296 million in efficiency gains and cumulative synergies raised to over €430 million for 2024.

• Net financial debt is €18.9 billion, with leverage ratio expected below 3x at year-end.

• Over €1 billion in non-strategic asset divestments and €700 million in targeted acquisitions year-to-date.

Financial highlights

• Revenue reached €32,543 million, up 5.1% year-over-year at constant scope and forex, excluding energy prices.

• EBITDA was €4,936 million, up 5.6% year-over-year, with margin up 72 bps to 15.2%.

• Current EBIT grew 6.4% to €2,601 million.

• Net income for 2024 expected above €1.5 billion, a double-digit increase year-over-year.

• Net free cash flow before investments/dividends at -€147 million, impacted by higher capex and working capital changes, but strong full-year free cash flow expected.

Outlook and guidance

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

• GreenUp plan targets 10% average annual net income growth through 2027 and over €8 billion EBITDA in 2027.

• Efficiency gains expected to exceed €350 million and cumulated synergies target raised to over €430 million.

• Water technologies expected to grow revenue 6–10% per year, with EBITDA margin expansion.