Veolia (VIE) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 results show strong operational and financial performance, with revenue up 5.1% organically excluding energy prices to €32,543 million and EBITDA up 5.6% to €4,936 million, reflecting the success of the GreenUp strategic plan and robust growth in Water Technologies and Hazardous Waste.

• Booster activities rose 6.9%, led by water technologies (up 13.5%) and hazardous waste, while strongholds grew 4.4%.

• Operational efficiency and synergy targets exceeded, with €296 million in efficiency gains and cumulative synergies from Suez integration reaching €411 million, target raised to above €430 million for 2024.

• Over €1 billion in non-strategic asset divestments closed year-to-date, with €700 million in targeted acquisitions and dynamic capital allocation.

• Strategic focus on decarbonization, innovation, and digital transformation, with major investments in R&D and efficiency programs.

Financial highlights

• Revenue reached €32,543 million, up 5.1% year-over-year at constant scope and forex excluding energy prices, with Q3 growth accelerating to 6.7%.

• 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 financial debt stood at €18,892 million, stable year-over-year, with leverage ratio expected below 3x at year-end.

• Net free cash flow before investments/dividends was -€147 million, reflecting higher capex and working capital changes.

Outlook and guidance

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

• Efficiency gains expected to exceed €350 million, with cumulative synergies from Suez integration now targeted above €430 million by year-end.

• GreenUp 2024-2027 targets reaffirmed: over €8 billion EBITDA in 2027, ~10% annual net income growth, €4 billion growth investments, and ambitious decarbonization, regeneration, and depollution goals.