An Eiffage 脡nergie Syst猫mes worker on a railway site. (Image: Eiffage)

The company鈥檚 overall revenue reached 鈧�5.2 billion (US$5.6 billion), a 4.9% increase over last year, with international revenue surging up 13.1%.

1) Strong order book and revenue in contracting and concessions

Contracting saw a 4.8% increase in revenue to 鈧�4.3 billion ($4.7 billion), with the 脡nergie Syst猫mes division leading the way with a 15.2% year-over-year increase.

Encompassing construction, infrastructure, and energy systems, contracting reported a 鈧�27.8 billion ($30.2 billion) order book, which is up 40% year-on-year.

The steep rise in orders and growth in revenue was augmented by two major contracts and strategic acquisitions, said Eiffage: Their concessionaire role for the A412 motorway in the UK and the acquisition of German-based EQOS Energie by the Eiffage 脡nergie Syst猫mes division.

Other significant contracts boosting revenues include civil engineering works for the Penly EPR2 reactors in France and the design and construction of a section of the Grand Paris Express.

Revenue from concessions grew by 5.4% to 鈧�880 million ($956 million), supported by increased activity from motorway and airport projects, the firm said.

2) Some mixed results in Eiffage鈥檚 construction revenue

The firm鈥檚 construction revenue dropped 13.6% to 鈧�943 million ($1.02 billion), which Eiffage said was largely due to the European housing market slowdown. The division鈥檚 order book rose 3%.

The company blamed 鈥渁 strict policy of selectivity, both in buildings and property development鈥� for causing the pullback.

Property development revenue was down 23.6% to 鈧�146 million ($159 million). Housing sales slowed, said Eiffage, with the company recording 278 bookings by the end of March 2024 compared to 313 at the end of March 2023.

Infrastructure works, on the other hand, grew revenue by 8.2% to 鈧�1.8 billion ($2 billion), driven by key projects in Germany, the UK, and Norway, said Eiffage. The division鈥檚 order book was reported to be up 64%.

3) International orders increasing, liquidity remains solid

While the firm鈥檚 in-country revenue remained relatively flat (up 1.5% to 鈧�3.5 billion [$3.8 billion]), its international revenue was up to 鈧�1.6 billion ($1.7 billion), a 13.1% climb from last year. The majority of that activity 鈥� 鈧�1.5 billion ($1.6 billion) 鈥� was from other European countries, with revenue outside of Europe reported down 1.3% to 鈧�149 million ($162 million).

Eiffage鈥檚 liquidity, it said, remained strong, with the company reporting 鈧�4.2 billion ($4.6 billion) for Eiffage and 鈧�2.7 billion ($2.9 billion) for APRR, France鈥檚 second largest road network, which Eiffage owns 52% interest in.

Outlook

Eiffage said, in contracting, it expects a further increase in business activity which may be 鈥渓ess sustained in its organic momentum than in 2023, as part of an ongoing selective approach to acquiring business.鈥�

In concessions, the firm is planning for an increase in revenue due to increased airport traffic, the ramp-up of the most recent motorway concessions and the full consolidation of of the Adelac (A41) road project.

鈥淎gainst this backdrop, the group expects current operating income to rise in contracting, driven in particular by further growth in Eiffage 脡nergie Syst猫mes鈥� operating margin,鈥� said Eiffage. 鈥淚n concessions, the new tax on long-distance transport infrastructure will have a significant impact on results.鈥�