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 international revenue accounting for 56% of the total.

• EBIT increased 9.1% to €3.9 billion, with margin up 50bps to 11.5%, despite a new non-deductible French transport infrastructure tax impacting net income, which declined 4.5% to €2.0 billion.

• Major acquisitions included controlling stakes in Edinburgh and Budapest airports, Denver's Northwest Parkway, and Helios Nordic Energy, contributing to higher net debt.

• Free cash flow improved to €361 million, and the order book reached a record €67.3 billion (+9% YoY).

• Appointment of Pierre Anjolras as COO as part of CEO succession planning.

Financial highlights

• EBITDA rose 6.9% to €5.7 billion (16.8% margin), with VINCI Airports contributing significantly.

• EBIT margin improved to 11.5% (+50bps YoY); VINCI Airports EBIT surpassed €1 billion, with a margin close to 50%.

• Free cash flow was €361 million, near record H1 levels, despite the new tax.

• Net financial debt increased to €23.4 billion, up from €16.1 billion at year-end 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 in 2024, but at a slower rate than in 2023.

• Net income will be impacted by the new tax (~€280 million full-year), but is expected to approach last year’s level.

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

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

• Renewable energy portfolio targeted at 3.5 GW in operation or under construction by year-end.