Half Year 2026 Bouygues SA Earnings Call Transcript
Key Points
- Bouygues (BOUYY) reported a robust first half with COPA up EUR33 million to EUR829 million, driven by a significant improvement at Equans.
- Equans' profitability improved to 5.2% in H1, up 1.2 percentage points year-on-year, and the company raised its annual margin guidance to 5.2%.
- Equans' order book reached a record high of EUR27.6 billion, up EUR1.7 billion year-on-year, with strong momentum in data centers and solar/storage.
- Bouygues (BOUYY) reduced net financial debt by EUR2 billion year-on-year to EUR6.5 billion, improving net gearing to 46%.
- Bouygues Telecom added 116,000 new fixed-line customers and 173,000 mobile plan customers in H1, with fixed ABPU up EUR0.20 to EUR33.20.
- The group made strategic acquisitions to expand its footprint, including Frauenrath in Germany and Vannoy Construction in the US, enhancing growth prospects.
- TF1+ continued to grow, with monthly streamers up 20% year-on-year, and a new partnership with Netflix has driven record viewership.
- Bouygues (BOUYY) confirmed its 2026 outlook for stable sales and record COPA, despite a challenging environment.
- The group's liquidity remains strong at nearly EUR16 billion, with a well-spread debt maturity schedule and a stable A3 rating from Moody's.
- Bouygues Construction's order book grew 4% year-on-year, supported by strong performance in international and French building segments.
- Group revenue declined 1.3% on a constant ForEx basis, with Bouygues Telecom and TF1 experiencing expected declines in COPA.
- Bouygues Telecom's mobile ABPU fell EUR0.60 year-on-year to EUR16.70 due to intense price competition and dilution from new low-ARPU customers.
- TF1's revenue fell 6% on a like-for-like basis, with linear advertising revenue down 9% due to macroeconomic uncertainties.
- Bouygues Immobilier's revenue dropped 19% year-on-year, and its order book declined 11%, reflecting ongoing challenges in the residential market.
- The proposed acquisition of SFR is now expected to close no earlier than late 2027 or early 2028, creating uncertainty and incurring significant fees.
- S&P placed Bouygues (BOUYY) on a negative credit watch, reflecting potential risks associated with the SFR acquisition.
- The group's free cash flow before working capital requirements decreased to EUR360 million from EUR440 million in the prior year.
- Colas' road business in France is expected to slow due to municipal elections, with a 3% to 5% decline in activity volumes.
- Equans' revenue declined 3% on a constant ForEx basis in H1, with a slow start in Q1 only partially offset by Q2 recovery.
- The geopolitical environment, including conflicts in the Middle East and Ukraine, remains volatile and could impact future performance.
Good morning, everyone, and welcome to the presentation of the first half 2026 results. Please note that this presentation will be recorded. You will be able to ask questions on the phone after the presentation. (Operator Instructions)
I give the floor to Olivier Roussat, who is the CEO of Bouygues Group.
Thank you. Good morning, everyone. This is a busy day, and so we're doing everything online to give people a chance to attend as many presentations as possible. I'll give you this presentation. Stephane Stoll will come in at some point, and then we'll be able to take questions together with all managers of this group.
We start with page 4. Now, let me remind you that this is a seasonal business and the performance of H1 are not representative of the annual performance, but the geopolitical environment is very uncertain and volatile. In spite of this, the group's performance on H1 has been extremely robust.
Revenue is slightly down 1.3% on a constant ForEx. The COPA is up EUR33
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