Vinci (DG) H1 2024 earnings summary

Executive summary

• Revenue grew 4.4% year-over-year to €33.8 billion in H1 2024, with strong performance in concessions, energy, and construction, and a record order book exceeding €67 billion.

• EBIT increased 9.1% to €3.9 billion, with margin up 50bps to 11.5%, while net income declined 4.5% to €2.0 billion due to a new French motorway tax.

• Free cash flow improved to €361 million, and major acquisitions included Edinburgh and Budapest airports, Denver's Northwest Parkway, and Helios Nordic Energy.

• Airports saw passenger traffic up 10% over 2023 and above pre-pandemic levels, with recent acquisitions outperforming expectations.

• Environmental initiatives advanced, with Toulon Airport achieving carbon net zero and further progress planned.

Financial highlights

• H1 revenue grew 4.4% to €33.8 billion, driven by dynamic performance in all core businesses.

• EBIT rose 9.1% to €3.9 billion (11.5% margin), despite a €120 million non-deductible tax on French highways.

• Free cash flow was €361 million, close to record H1 levels, and EBITDA reached €5.7 billion (16.8% margin), up 6.9%.

• Net financial debt increased to €23.4 billion, up €7.2 billion from December 2023, mainly due to acquisitions.

• Interim dividend set at €1.05 per share, unchanged from prior year.

Outlook and guidance

• Revenue and operating earnings are expected to grow further in 2024, though at a slower rate than in 2023.

• Net income is projected to be close to last year's level, despite a €280 million annual impact from the new highway tax.

• VINCI Autoroutes traffic seen stable; VINCI Airports passenger numbers to exceed 2019 levels.

• VINCI Energies and Cobra IS anticipate further revenue growth and higher margins.

• Interim dividend set at €1.05 per share.