(AOF) – Down during two previous sessions, Spie fell 5.75% to 32.80 euros after a disappointing quarterly publication. The specialist in multi-technical services in the fields of energy and communications recorded, for the period from July to September 2024, growth of 1.7% year-on-year in organic data of its production, at 2.43 billion euros. It peaked at 5.4% in the second quarter and 6.2% in the first quarter while the market was targeting 2.9%.
“Growth faced a very challenging base of comparison, but slowed more than expected across all divisions, in part due to project phasing, falling inflation and normalizing trends of activity,” explains Jefferies.
The group indicated that it expects continued organic growth in its production for the current financial year, but at a lower rate than in 2023.
Spie also raised its Ebita forecast for 2024. This indicator is now expected to be “at least 7.1%” this year, while managers previously anticipated it to be “at least 7%”.
AOF – LEARN MORE
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Key Points
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– First European provider of multi-technical services for energy and communication, created in 1900;
– Turnover of €8.7 billion achieved in Germany and Central Europe (37%), France (35%), and North-West Europe (21% in the Netherlands ahead of Scandinavia) then oil, gas and nuclear activities;
– Ambition based on 3 pillars: dynamic and rapidly accretive external growth, recurrence of revenues provided by monitoring the cycle of customer installations, complementarity of solutions focused on the energy and digital transition and deployed in 4 strategic markets – “smart” cities , energy, “efficient” and connected buildings and services to industries;
– Split capital excluding the Peugeot family (5.1%), employees (7.4%), managers (1.8%) and BPIFrance (5.5%), Gauthier Louette being CEO of the board of 11 directors.
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Challenges
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– Agility of the business model:
– resistance to economic cycles via:
– recurring share of maintenance activities in revenue (75%),
– diversity of clients: 36% in smart cities, 25% in energy, 22% in real estate and 17% in industrial services,
– ability to impose prices and selectivity in the choice of contracts,
– know-how in the integration of acquisitions, focused on Germany at the beginning of 2024,
– innovation: focused on data processing for buildings, augmented reality applications (MAINTiv for equipment), hypervision platforms, etc., and generating around €4 billion in revenue;
– Environmental strategy 2025:
– 25% reduction in the carbon footprint of activities (vs 2019) and 67% in that of suppliers,
– increase to 70% of the share of products sold contributing to the mitigation of climate disorders and to 50% that of products eligible for the taxonomy (46% in 2022),
– 67% of purchases from suppliers reducing their carbon footprint,
– refinancing strategy with indexation on 4 ESG criteria;
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Strengthened balance sheet net debt of €2.5 billion giving a leverage effect of 1.2, Free self-financing of €427 million.
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Challenges
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– Activity governed by European regulations and supported by recovery plans favorable to energy and information infrastructures;
– After dynamic activity at the start of the year, 2024 expectations of continued growth in revenues (lower than in 2023, a record year) and operating margin;
– 2022-25 plan: revenue growth of 4% per year and operating margin of 6.7%;
– 2023 dividend of €0.83 and maintenance of a distribution rate of 40% in 2024.