• Revenue Growth: Overall growth of 4%, with 3% organic growth.
• International Revenue: Accounts for 58% of total revenue, with a 6% increase internationally.
• EBIT: EUR9 billion, up 8% from the previous year.
• VINCI Airports EBITDA: Reached an all-time high, close to EUR3.3 billion.
• Free Cash Flow: Historic high of EUR6.8 billion.
• VINCI Energy Revenue: Exceeded EUR20 billion, with a 7.2% EBIT margin.
• Cobra EBIT Margin: Increased to 7.8%.
• Construction Revenue: Slightly up to EUR32 billion, with a 4.1% operating margin.
• Net Income: EUR4.4 billion, up 3%.
• CapEx: Increased to EUR5 billion, with significant investments in renewables and EHV lines.
• Debt: Increased by EUR4 billion, with a cost of debt at 4.9%.
• Dividend Proposal: EUR4.75 per share, with EUR1.05 already paid as an interim dividend.

• Warning! GuruFocus has detected 2 Warning Sign with VCISF.

Release Date: February 07, 2025

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

Positive Points

• Vinci SA (VCISF) reported record levels of revenue and earnings for 2024, despite the impact of a new tax on French motorways.
• The company continues to expand internationally, with 58% of its business and over half of its net earnings now coming from outside France.
• Vinci Airports had an excellent year, with passenger numbers up 8.5% and EBITDA reaching an all-time high of EUR3.3 billion.
• Vinci Energy and Cobra reported strong performances, with significant growth in revenue and order intake, and improved EBIT margins.
• The company generated exceptional free cash flow of EUR6.8 billion, with a strong order book and 70% of orders coming from outside France.

Negative Points

• Vinci Autoroutes faced challenges with traffic disruptions and a EUR284 million tax, leading to a decrease in EBITDA, EBIT, and net income.
• Vinci Real Estate is still experiencing a serious crisis, with a decline in revenue and nonrecurring charges impacting financial performance.
• The company faces potential risks from increased taxation in France, which could impact future profitability.
• There is uncertainty regarding the long-term attractiveness of toll road assets due to political and regulatory challenges.
• Vinci Construction experienced volatility in 2024, with challenges in Africa and potential impacts from French local election cycles.

Q & A Highlights

Q: With the current political climate in France, do you think the increase in taxes is temporary, and what are your expectations for the dividend policy in 2025? A: Xavier Huillard, CEO, expressed optimism that the tax increase is temporary, contingent on the government addressing public spending. Regarding dividends, he noted that the payout ratio is currently at 56%, leaving room for maneuver, and emphasized that Vinci has historically maintained its dividend except during COVID.

Q: What is Vinci's strategy for expansion in the US, particularly in the context of potential political changes? A: Xavier Huillard stated that Vinci's strategy in the US is cautious and focused on legacy businesses like energy distribution. He expressed confidence that potential political changes would not significantly impact Vinci's operations, as the company is relatively small in the US market.

Q: How is Vinci addressing the volatility in its Construction segment, particularly in Africa and France? A: Pierre Anjolras, Chairman of Vinci Construction, acknowledged the challenges in Africa due to political instability and in France due to election cycles. He emphasized that Vinci's business model is designed to handle such fluctuations, focusing on operational excellence rather than volume.

Q: What is Vinci's approach to data centers, and why is the company cautious about investing in them? A: Xavier Huillard explained that while Vinci is active in building and providing energy for data centers, the company is cautious about investing directly in them due to the rapidly changing needs of data center users, which Vinci does not fully understand.

Q: Given the recent developments, are toll road assets still attractive to Vinci? A: Nicolas Notebaert, CEO of VINCI Concessions, affirmed that toll roads remain attractive due to their correlation with GDP and the increasing international traffic. He noted that road transport continues to be a vital mode of transportation globally.

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