Vinci (DG) H2 2023 earnings summary

Executive summary

• Revenue rose 12% to €68.8bn, while net income increased 10% to €4.7bn; both reached new highs.

• EBITDA grew 17% to €12.0bn; free cash flow rose 22% to €6.6bn and net financial debt fell €2.4bn to €16.1bn.

• Operating margins improved across the main energy and construction businesses; the order book ended the year 7% higher at €61.4bn.

Financial highlights

• FY 2023 revenue €68,838m, up 12% (+10% like-for-like); EBIT €8,357m, up 22%; EBITDA €11,964m, up 17%.

• Net income attributable to owners €4,702m, up 10%; diluted EPS €8.18, up €0.71 YoY.

• Free cash flow €6,628m, up 22% from €5,433m; operating cash flow was €7,758m.

• International revenue reached €39.2bn, 57% of total, up 16.3% reported and 13.4% like-for-like.

Outlook and guidance

• FY 2024 revenue expected to rise again, with slower growth than 2023; earnings are expected to increase.

• Despite the estimated ~€280m impact of France’s new tax on long-distance transport infrastructure, 2024 net income could be close to FY 2023.

• Traffic is expected to be slightly higher at Autoroutes; Airports passenger numbers slightly above 2019; Energy revenue growth to continue at a slower pace with high operating margin sustained.

• Cobra IS expects further revenue growth and a 7.5% operating margin; renewable capacity in operation or under construction targeted at ~3.5 GW by year-end 2024.

• Construction activity expected to stabilise near 2023 levels, with further operating-margin improvement.