• Revenue: EUR6.2 billion, up 6.4% reported and 10.2% organically.
• Adjusted Operating Profit: EUR996 million, margin of 16%, up 11 basis points year-on-year.
• Adjusted EPS: EUR1.38, up 8.7% and 17% at constant currency.
• Free Cash Flow: EUR843 million, representing 13.5% of revenue, up 27.9% year-on-year.
• Cash Dividend: Proposed EUR0.90 per share, up 8.4% year-on-year.
• Organic Growth: 10.2% for the full year, with 9.6% in Q4.
• Marine & Offshore Organic Growth: 13.7% for the year.
• Industry Organic Growth: 19.9% for the year.
• Certification Organic Growth: 15% for the year.
• Consumer Products Organic Growth: 8.1% for the year.
• Net Financial Debt: EUR1.2 billion at year-end.
• CapEx: 2.2% of group revenue.
• Leverage: 1.06 times.

• Warning! GuruFocus has detected 6 Warning Signs with IIPZF.

Release Date: February 25, 2025

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

Positive Points

• Bureau Veritas SA (BVRDF) reported a revenue of EUR6.2 billion for 2024, marking a 6.4% increase on a reported basis and 10.2% organically.
• The company achieved a record high free cash flow of EUR843 million, representing 13.5% of revenue and a 27.9% year-on-year growth.
• Adjusted operating profit increased by 7.1% to EUR996 million, with a margin of 16%, showing a year-on-year improvement.
• Bureau Veritas SA (BVRDF) improved its nonfinancial ratings and was included in the Carbon Disclosure Project A-List.
• The company demonstrated strong growth in sustainability, energy, decarbonization, and cyber sectors, with over 50% of the portfolio delivering high single-digit or double-digit organic growth.

Negative Points

• The company faced foreign exchange headwinds, which negatively impacted total growth by 4.3% on a reported basis.
• Agri-Food & Commodities segment experienced a margin decline of 91 basis points due to a negative mix effect from metals and minerals.
• The Building & Infrastructure business in China contracted following government spending reductions.
• The Technology segment within Consumer Products contracted slightly in 2024, facing decreased demand for wireless and mobility products.
• Bureau Veritas SA (BVRDF) acknowledged the need for acceleration in M&A to build capabilities and footprint, indicating potential challenges in achieving growth targets without acquisitions.

Q & A Highlights

Q: Could you quantify the benefits from restocking within consumer products and provide growth and margin expectations for 2025? A: Hinda Gharbi, CEO: The consumer business has shown solid growth due to securing key contracts and diversifying services and geographies. This growth is not a one-off and provides a strong baseline for 2025. Francois Chabas, CFO: We do not expect the margin of Consumer Products to be lower in 2025 than in 2024, thanks to a reshaped business and cost base.

Q: What are your expectations for interest costs in 2025? A: Francois Chabas, CFO: The financial cost will remain similar, with a slight increase possible if more M&A is pursued. The effective tax rate is expected to be between 30% and 31%, leaning towards the lower end.

Q: How do you view the potential for larger M&A transactions, and what criteria would you use to evaluate them? A: Hinda Gharbi, CEO: We are open to larger transactions to transform our portfolio, focusing on strategic fit and shareholder returns. Francois Chabas, CFO: For larger targets, we prioritize strategic alignment with the LEAP I 28 program and ensuring double-digit shareholder returns.

Q: Are there any risks to growth in the US due to changes in administration and stance on sustainability? A: Hinda Gharbi, CEO: Despite political rhetoric, customers prioritize risk management, brand protection, and competitiveness, which sustains demand for sustainability services. The renewable energy sector is supported by private enterprise needs, despite potential regulatory changes.

Q: What is the outlook for the Marine & Offshore segment, considering potential capacity constraints at shipyards? A: Hinda Gharbi, CEO: While shipyard capacity is filling up, we are focusing on growing our core in-service business, which has shown strong growth. We expect the segment to perform well, with careful monitoring of shipyard capacity.

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