- Construction Division Restructuring Creation of a unified Construction division combining Colas, Bouygues Construction, and Bouygues Immobilier under Pascal Minault, aiming to boost sales and profitability through EUR 27.8 billion revenue in 2025.
- Financial Performance Group COPA rose to EUR 2.655 billion (+EUR 120 million) despite a EUR 580 million currency headwind; Construction division COPA increased to EUR 982 million (+EUR 155 million), with free cash flow at historic highs.
- Order Book Stability Construction division maintains EUR 32 billion order book, with Colas up 4% (EUR 13.7 billion), while Equans sustains EUR 25.4 billion order book and achieves 4.4% margin (COPA EUR 820 million), exceeding expectations.
- Debt Reduction & Dividend Growth Net debt fell to EUR 4.2 billion (-EUR 1.9 billion YoY), and the proposed EUR 2.10/share dividend reflects a 5% increase, supported by improved cash flow and a 28% debt-to-EBITDA gearing ratio.
- Strategic Focus on AI & Data Centers Bouygues Telecom and Equans prioritize AI integration for client services and internal processes, with EUR 1.48 billion CapEx and 5% COPA margin target for Equans in 2026, aligning with growth in cloud/AI infrastructure.
Segmental Performance
Bouygues Telecom reached its targets, with billings to clients up, EBITDA after lease obligations close to 2024, and gross operating CapEx at EUR 1.48 billion. The company gained 510,000 new clients over the year, bringing the total number of clients to 4.7 million with fiber to the home, which is 86% of the national population. Equans' revenue was EUR 18.7 billion, down 2% year-on-year, but COPA was significantly up to EUR 820 million, with a margin from activities of 4.4%, ahead of expectations.
Outlook and Guidance
The guidance for Equans is stable revenue compared to 2025 on a constant exchange rate basis, with a margin for activities of 5% and a cash conversion rate of 80% to 100% from COPA to free cash flow before WCR. Bouygues Telecom's outlook for 2026 is for billing to clients and EBITDA after lease obligations close to the level achieved in 2025. Analysts estimate next year's revenue growth at 2.4%.
Valuation Metrics
The company's current valuation metrics are as follows: P/E Ratio at 16.21, P/B Ratio at 1.5, P/S Ratio at 0.34, EV/EBITDA at 11.29, Dividend Yield at 3.93%, Free Cash Flow Yield at 14.32%, ROIC at 5.33%, ROE at 9.64%, and Net Debt/EBITDA at 3.95. These metrics indicate that the company's stock is fairly valued, with a reasonable dividend yield and a decent return on equity.
Management's Strategy
Olivier Roussat mentioned that the company's aspirational profit margin for Equans is 5%, and they are ahead of schedule, with a potential for further improvement. The company is focused on managing working capital requirements tightly, resulting in a EUR 3 billion inflow over the past few years. A Capital Markets Day is planned for the end of 2026 to discuss projections and expectations.