In This Article:
-
Revenue Growth: 7.3% overall growth; 7.5% in construction, 6.5% in concessions.
-
Operating Profit: Up 3%, would have been 8.2% without motorway tax impact.
-
Net Income: Up 2.8%, 9.2% excluding motorway tax.
-
Order Book: Increased by 11% over the previous year.
-
Cash Flow: Strong cash flow generation, free cash flow at EUR2.6 billion, up EUR360 million.
-
Energy Systems Revenue: Expected to reach close to EUR8 billion with an operating margin up to 6%.
-
Dividend Proposal: EUR4.7 per share, up 15%.
-
Operating Margin in Contracting: 4.3%, up 30 basis points.
-
EBITDA Margin in Concessions: 70.3%, impacted by motorway tax.
-
Net Debt: Reduced by EUR500 million to EUR9.4 billion.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Eiffage SA (EFGSY) reported a strong year in 2024 with a 7.3% revenue growth, driven by both construction and concessions.
-
The company achieved a record order book, boosted by major contracts such as the EPR2 and Greater Paris Express, enhancing visibility in Europe.
-
Eiffage SA (EFGSY) demonstrated strong cash flow generation, supported by a growing order book and efficient working capital management.
-
The Energy Systems division is expected to post revenue close to EUR8 billion with an operating margin of up to 6% in 2025.
-
The company plans to recommend a dividend of EUR4.7 per share, up 15%, with a future payout policy of 45% of net income group share.
Negative Points
-
The company faces challenges in the housing market, with a decline in the property market and uncertainty expected to continue into 2025.
-
Eiffage SA (EFGSY) is impacted by a new motorway tax, which has affected operating profitability and net income growth.
-
There is ongoing debate and criticism over the motorway concession business model, which has led to a new motorway tax.
-
The company anticipates a decline in net income after the exceptional contribution from large companies in France in 2024.
-
Eiffage SA (EFGSY) faces challenges in integrating recent acquisitions, particularly in Germany, which may impact short-term growth.
Q & A Highlights
Q: Could we have the forecast for APR traffic, please? A: Philippe Nourry, Former Chairman of Motorway Concessions, stated that the traffic trend is positive due to favorable base effects, including the farmers' crisis and lack of snow in ski resorts. He forecasts growth at the end of February of plus 5% to plus 5.5%.
Q: There's a major effort on the dividend and payout policy. If in 2025, the net income is down, is there some margin to protect the payout ratio? A: Benoit De Ruffray, CEO, indicated that the Board will consider the situation if net income is down, but the focus is on generating earnings before deciding on distribution. The 45% payout policy is the target.