PARIS - Bouygues, the diversified conglomerate based in France, has announced plans for slight growth in both revenue and operating profit from activities (ROCA) for the year 2025, following solid results for 2024. The company reported its 2024 net profit at 1.06 billion euros, reflecting growth driven by its construction segment and its subsidiary Equans.
Revenue for the year reached 56.75 billion euros, increasing by 1%, which was primarily attributed to strong performance by Bouygues Construction and Equans, its energy services subsidiary. This growth has positioned Bouygues well amid uncertain global market conditions.
The company emphasized the improvement, stating, "Equans aims for continued organic revenue growth and an activity margin close to 4%." This forecast highlights Equans' potential as part of Bouygues' broader strategy to increase profitability across its diversified business segments.
For 2024, Bouygues achieved significant operational results with operating profit reaching 2.54 billion euros, marking an increase of 124 million euros year-on-year. Analysts had expected slightly higher revenues at 56.85 billion euros, indicating Bouygues' results came just shy of these predictions.
The construction order book for Bouygues reached record levels, standing at 32.2 billion euros, which reflects strong future visibility and demand. International operations, now accounting for approximately 68% of the order book, have also shown substantial growth from 63% reported in 2021.
Despite these encouraging numbers, Bouygues Immobilier faced challenges, as revenue fell by 17% to 1.4 billion euros. The company reported difficulties particularly within the commercial real estate sector, noting, "the commercial activity remains at a standstill." The order book for Bouygues Immobilier decreased by 6%, underscoring the challenging environment the sector currently faces.
Investors responded positively to Bouygues' announcement, with the stock price rising significantly. Shares increased by 4.09% on the Paris Bourse, closing at 34.88 euros as investors reacted to the company’s financial report. Trading volume reached 1,868,416 shares, translating to 0.49% of the company's market capitalization. Over the past week, Bouygues' stock has increased by 6.24%, though it remains down 3.51% over the past year.
Morgan Stanley highlighted the overall strength of Bouygues' cash flow, stating, "the strengthening of cash flow should favor the outperformance of the stock today." This reflects confidence among analysts who see buoyant operating performance paving the way for future growth.
Looking forward, Bouygues has outlined its strategy for 2025, targeting continued improvement and adaptability across its segments. The company expects various financial laws to impact net profit by around 100 million euros this year, but it remains optimistic about its strategic direction.
Equans plays a pivotal role moving forward, with projected margins aiming close to 4% by the end of the year. The subsidiary is also working toward reaching margins of 5% by 2027, as indicated by Bouygues. The expected growth strategy focuses on boosting organic revenue and enhancing efficiency across its operations.
Overall, Bouygues’ report offers insight not only about its financial health but also its ability to navigate through market uncertainties. The group’s diverse portfolio, including interests across telecommunications, construction, and media, highlights the resilience of its operations as it sets goals for the upcoming year.
Looking to the future, stakeholders will be closely watching how Bouygues continues to implement its strategies to maintain growth against the backdrop of fluctuative market conditions and regulatory environments.