Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Bouygues (EPA:BOUY) delivered stronger-than-expected first-quarter core earnings on Wednesday, supported by solid performances across its energy, construction, and telecom operations, and maintained its full-year outlook.
The company’s shares rose nearly 1% in Paris.
The French conglomerate posted current operating profit from activities (COPA) of €69 million ($77 million), nearly double the company-compiled consensus estimate of €35 million. Shares rose 2.7% in early trading following the results.
At Equans, Bouygues’ energy services arm, the COPA margin improved by 0.9 percentage point year-on-year to 3.8%. However, quarterly sales remained flat as the company cited "some short-term wait-and-see stance in a few activities in France and Europe."
“The daily news coming out of the USA brings a level of uncertainty to the economic world that makes people hesitate before investing,” said Bouygues CFO Pascal Grange during a media call. Addressing tariff-related risks on a separate analyst call, he added, “in the U.S. we are quite local,” noting that the group primarily produces within the markets it serves.
Quarterly revenue came in at €12.59 billion, matching consensus expectations and reflecting the first full-quarter contribution from La Poste Telecom (BCBA:TECO2m), which Bouygues acquired in November 2024.
Sales at Colas, the company’s road and rail subsidiary, rose 3%, driven by a 12% increase in the rail division amid strong demand for soft-mobility infrastructure. The construction unit also saw a 3% sales rise, led by a 13% increase in international building activity.
At the end of March, Bouygues reported a record order backlog of €34.2 billion in its construction segment. The group reiterated its full-year guidance despite what it described as “a very uncertain macroeconomic and geopolitical environment.”
"We expect the share price to be up today on the back of these consensus-beating results," Stifel analysts said in a post-earnings note. "Beyond, we continue to believe that the tough Telecoms environment and the structure of the group remain a break on the stock’s long-term performance."