SPIE Q1 2025 slides: revenue grows 8.5% as acquisitions drive expansion

Introduction & Market Context

SPIE SA (EPA:SPIE) reported an 8.5% increase in total revenue for the first quarter of 2025, reaching €2.42 billion, according to the company’s quarterly presentation released on April 25, 2025. The growth was primarily driven by acquisitions, which contributed 6.4 percentage points, while organic growth slowed to 2.1% compared to 6.2% in the same period last year.

The technical services provider’s stock declined 2% to €39.28 on the day of the announcement, though it remains near its 52-week high of €42.16, reflecting the market’s generally positive view of the company’s long-term prospects despite the mixed quarterly results.

Quarterly Performance Highlights

SPIE’s performance varied significantly across regions, with Germany continuing to be the standout performer. The company’s Q1 2025 revenue growth breakdown shows the diverse regional dynamics driving overall results.

As shown in the following chart of revenue growth by region:

Germany posted exceptional growth of 27.2%, comprising 7.2% organic growth and 19.9% from acquisitions. This strong performance reinforces Germany’s increasing importance to SPIE, now accounting for 33% of the group’s revenue at €789.7 million.

"Strong contribution from 2024 acquisitions and high organic growth sustained," noted the company regarding its German operations, which continue to benefit from energy transition investments.

Meanwhile, France, which represents 34% of group revenue, experienced a slight decline of 0.8%, with organic growth contracting by 2.1%. This was partially offset by a 1.4% contribution from acquisitions. The company attributed this performance to "a mixed economic environment" and a high comparison basis from Q1 2024.

North-Western Europe delivered robust growth of 8.3%, primarily driven by organic growth of 7.5%, with the Netherlands showing particular strength in high-voltage projects related to energy transition and grid expansion.

Detailed Financial Analysis

SPIE’s total revenue increased from €2,226 million in Q1 2024 to €2,415 million in Q1 2025, representing an 8.5% growth at constant exchange rates. The breakdown of this growth illustrates the company’s increasing reliance on acquisitions to drive expansion.

The following waterfall chart visualizes the components of SPIE’s revenue growth:

Organic growth contributed 2.1 percentage points to the overall increase, while acquisitions added a substantial 6.7 percentage points. Disposals had a minor negative impact of 0.3 percentage points, and foreign exchange effects were neutral.

The company’s organic growth has been on a downward trend over the past five quarters, declining from 6.2% in Q1 2024 to 2.1% in Q1 2025, though it showed a slight improvement compared to the 1.7% recorded in Q3 2024.

Strategic Initiatives

SPIE continues to focus on energy transition projects, which remain a key growth driver across multiple regions. The company highlighted several significant contract wins that underscore its strategic positioning in this sector.

In Germany, SPIE secured new contracts for three substations in Baden-Württemberg as part of the Netze BV grid extension program, supporting the integration of renewable energy sources into the grid.

In the Netherlands, SPIE Global Services Energy was awarded a contract by Van Oord for termination and testing of inter-array cables on the Ecowende wind farm, which will generate 760 MW of green electricity, covering approximately 3% of the Netherlands’ green energy consumption.

The company is also expanding its digital infrastructure capabilities, as evidenced by its project to create a new-generation virtual campus for ICAM engineering school in France, providing 4,500 students with a workplace accessible from any device while reducing environmental impact by 75%.

M&A Strategy

Acquisitions remain a cornerstone of SPIE’s growth strategy, with the company closing two transactions and signing one more during the quarter. The M&A pipeline remains robust, with 15 active projects and approximately 50 identified targets in the short to medium term.

The following image illustrates SPIE’s M&A execution and pipeline:

Recent acquisitions include ELEKTROMONTAŻ, closed at the end of January 2025, and Corporate Software (ETR:SOWGn), closed in early January 2025. The company also signed an agreement to acquire LTEC, which generates approximately €19 million in annual revenue.

"Integration of all 2024 acquisitions progressing well and in line with plan," the company stated, emphasizing its disciplined approach to M&A execution.

Forward-Looking Statements

SPIE confirmed its outlook for 2025, projecting strong total growth that will push group revenue "well above the €10bn mark" through a combination of organic growth and active bolt-on acquisitions.

The company also anticipates continued expansion of its EBITA margin and plans to maintain its dividend policy of distributing approximately 40% of adjusted net income attributable to the group.

This outlook aligns with the company’s performance in 2024, when it reported a 13.7% increase in total revenue to €9.9 billion and a 50 basis point expansion in EBITA margin to 7.2%, as noted in its previous earnings report.

Conclusion

SPIE’s Q1 2025 results demonstrate the company’s ability to maintain growth momentum through strategic acquisitions, even as organic growth faces challenges in certain regions. Germany continues to be the primary growth engine, while France shows resilience in a mixed economic environment.

The company’s focus on energy transition projects positions it well to capitalize on increasing investments in renewable energy infrastructure and grid modernization across Europe. However, the declining rate of organic growth may raise questions about sustainable long-term expansion without continued acquisitions.

As SPIE progresses toward its goal of exceeding €10 billion in revenue for 2025, investors will likely focus on the company’s ability to maintain margin expansion while successfully integrating its growing portfolio of acquisitions.

Full presentation:

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