Vinci (DG) Q3 2024 TU earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 3.3% year-over-year to €52.3 billion, with strong performance in concessions (+7%) and energy (+5%) segments, and international revenue accounting for 57% of total.

• Major acquisitions included Edinburgh Airport, Fernao (cybersecurity), Denver Northwest Parkway, and new highway concessions in Brazil and India, enhancing international presence.

• Order book reached €66.8 billion, up 6% year-over-year, representing nearly 14 months of activity and 68% international exposure.

• Net financial debt increased to €22.2 billion by September 2024, mainly due to acquisitions.

Financial highlights

• Group EBITDA for H1 2024 was €5.7 billion (16.8% margin), up €364 million from H1 2023.

• H1 2024 net income attributable to owners was €2.0 billion, down 4.5% year-over-year, mainly due to new taxes and higher financial costs.

• Free cash flow in H1 2024 was €361 million, up from €261 million in H1 2023.

• Liquidity remains strong with €10.1 billion in managed net cash and €6.5 billion in unused credit facilities.

• Revenue growth supported by acquisitions in airports, energy, and construction segments.

Outlook and guidance

• 2024 revenue expected to rise, but at a slower pace than 2023, with operating earnings also increasing.

• Net income for 2024 projected close to 2023, but subject to a €280 million impact from a new transport infrastructure tax and a potential €400 million corporate tax surcharge.

• No change to Cobra IS revenue target of €7 billion for 2024 and €7.5 billion for 2025.

• VINCI Energies and Cobra IS anticipate further revenue and margin growth; Construction to maintain or exceed 2023 business levels.

• Cautious outlook for roadworks and building in France, with no acceleration expected before 2026.