Eiffage sees ‘significant growth’ in 2023

An Eiffage Énergie Systèmes worker on a rail job. The group posted its annual financial results in February. (Image: Eiffage)

The results report said it was “another year of significant growth” for the group’s contracting and concession segments.

Eiffage said it increased its recurring operating income by 8.6% while noting debt reduction and cash flow generation at €2.3 billion (US$2.5 billion), which is roughly 22% higher than the same point last year.

In the report notes, the company said European activities were a big driver of 2023’s success.

“In contracting, revenue grew 7.1% (more than 5.8% like for like) to nearly $19.7 billion, driven by the activity of the group’s European entities (more than 16.5% growth in Europe outside France),” said Eiffage.

Construction revenue took a dip, mostly on a slower real estate market, but Eiffage said residential building, civic, and industrial builds in its home country helped offset a sluggish year, overall.

“Revenue was down 2.3% to $4.6 billion,” stated the group. “The decline in new housing in France was partially offset by residential and tertiary renovations, the construction of public facilities, and industrial investment.”

The company reported a $5.5 billion order book for construction activities as of the end of last year.

As for infrastructure, the company reported a revenue increase of nearly 10% (worth approximately $8.7 billion). Eiffage saw a roughly 23% increase in international revenue last year. Reporting on the infrastructure division the comapny said that it, “continues to benefit from strong activity on the HS2 high-speed rail line in the United Kingdom and the E18 motorway in Norway, positive momentum in the transport infrastructure market in Germany, and the boom in offshore wind.”

The order book by the end of last year was $15.6 billion for infrastructure projects while the energy system division reported more than an 11% increase with an order book of $7 billion.

Eiffage’s major contracts and investments

At the end of 2023, Eiffage won three major contracts through subsidiary Eiffage Génie Civil:

• Civil engineering works on the first two Penly EPR2 reactors (France), for more than $4.3 billion.
• The contract for the design and construction of a section of line 15 East of the Grand Paris Express, for a total amount of $2.8 billion.
• Civil engineering works and the laying of tracks covering 230 km of the Latvian section of the Rail Baltica railway project. The contract is estimated at $4.1 billion and will comprise several contracts with multi-year purchase orders. The contract is a three-way consortium including Eiffage, Budimex,  and Rizzani de Eccher. Eiffage said this contract was not included in the order book on December 31, 2023.

In 2023, Eiffage said it increased its stake in Getlink (Paris, France) and the Millau Viaduct (Occitanie Region, France) in concessions. In contracting, Eiffage Énergie Systèmes made 11 acquisitions. Total investments, financed from own cash, amounted to nearly $867 million, of which $585 million was disbursed in 2023 and $260 million in January 2024.

“In concessions, the group increased its stake in Getlink to 20.55% and acquired 49% of the capital of the Millau Viaduct, of which it is the sole shareholder,” said Eiffage. “Eiffage Énergie Systèmes has strengthened its European network, mainly in Germany and the Netherlands. These acquisitions represent a total of nearly $542 million of activity over the full year. Some of them were finalised in early 2024.”

Eiffage shares 2024 outlook

The group expects 2024 to be ‘of the same order’ as 2023.

“In contracting, [we expect] a further increase in activity, less sustained in its organic momentum than in 2023 as part of an ongoing selective approach to order intake,” said Eiffage. “In concessions, also [expect] an increase in revenue, thanks to the robustness of motorway traffic, further growth in airport traffic and the full consolidation of the Adelac motorway (A41).”