• Group Sales: EUR56.8 billion, approximately 1% growth year-on-year.
• Current Operating Profit from Activities (COPA): EUR2.53 billion, a 5% increase year-on-year.
• Net Profit Attributable to the Group: EUR1.058 billion, up slightly over the period.
• Net Debt: EUR6.06 billion at year-end 2024, down from EUR6.25 billion the previous year.
• Free Cash Flow Before Working Capital Requirements: Increased by 8% year-on-year.
• Equans Margin from Activities: 3.5% with a cash conversion rate of 98%.
• Backlog: Record high at EUR32.2 billion, a 13% increase over 2023.
• Dividend Proposal: EUR2 per share, a 5.3% increase from the previous year.
• Construction Sales: EUR27.5 billion, up 1% year-on-year.
• Colas Sales: EUR15.9 billion, almost stable year-on-year.
• Equans Sales: EUR19.2 billion, up 2% year-on-year.
• Bouygues Telecom Sales to Customers: Up 5% year-on-year.
• Bouygues Telecom EBITDA: EUR2.037 billion.
• TF1 Revenue: EUR2.4 billion, up 3% year-on-year.
• TF1 Margin: 12.6%, up 0.1 percentage point from 2023.

• Warning! GuruFocus has detected 9 Warning Signs with BOUYF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bouygues (BOUYF) posted robust results for 2024, achieving its targets with a slight increase in sales and a 5% rise in current operating profit from activities.
• The company reported an 8% year-on-year increase in free cash flow before working capital requirements.
• Equans, a subsidiary of Bouygues, performed well with a 3.5% margin from activities and a net cash position of over EUR1.5 billion.
• The construction backlog reached a record high of EUR32.2 billion, providing good visibility for future activities.
• The Board of Directors proposed a 5.3% increase in the dividend to EUR2 per share, reflecting confidence in the company's financial health.

Negative Points

• Bouygues Immobilier faced challenges with a negative COPA of EUR51 million due to a difficult year in commercial buildings and a downturn in interest rates.
• The company's net debt was EUR6.06 billion at year-end 2024, despite significant acquisitions totaling over EUR1.1 billion.
• Bouygues Telecom's mobile ABPU decreased to EUR19.1 due to a highly competitive market with low acquisition prices.
• The residential property market remains uncertain, with interest rates and buyer confidence affecting sales.
• Bouygues faces potential challenges from increased tariffs on imported equipment from the US, which could impact costs.

Q & A Highlights

Q: Can you provide insights into Bouygues' investment opportunities in Europe, particularly in the UK and Switzerland, and discuss any risks related to tariffs and telecom joint ventures? A: Olivier Roussat, CEO, mentioned that Ukraine poses ethical challenges, making it a difficult market. In the UK, revenue exceeded expectations due to investments in solar energy and decarbonization projects. Switzerland's market remains stable, driven by manufacturing. Regarding tariffs, Bouygues doesn't manufacture products for export, and any increased costs due to tariffs would be passed on to customers. For telecom joint ventures, Bouygues plans to maintain similar capital contributions as last year, with a decrease expected in the coming years.

Q: What are Bouygues Telecom's targets for 2026, and how does La Poste Telecom fit into these plans? A: Olivier Roussat, CEO, confirmed that Bouygues Telecom's free cash flow before working capital requirements is expected to be around EUR600 million in 2026, excluding La Poste Telecom. The integration of La Poste Telecom will involve migration costs and financial debt, with full benefits expected by 2028.

Q: What are the next steps for Equans to achieve its 2027 margin target of 5%? A: Jerome Stubler, President of Equans, stated that Equans will continue focusing on improving financial performance through management changes, procurement strategies, and pricing adjustments. The company is confident in reaching its 5% margin target by 2027.

Q: How is Bouygues addressing the challenges in the residential property market? A: Emmanuel Desmaizieres, CEO of Bouygues Immobilier, highlighted that confidence and interest rates are key factors affecting the residential market. Bouygues Immobilier has implemented restructuring measures, saving EUR50 million, and aims to break even by the end of the year.

Q: What is Bouygues' strategy regarding potential consolidation in the telecom market? A: Olivier Roussat, CEO, explained that consolidation from four to three operators would require agreement among all players and compliance with antitrust laws. The current competition framework makes such consolidation challenging, and Bouygues is not actively pursuing it.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.