Eiffage, the construction and motorway concessions giant, saw its sales increase by 4.9% in the first quarter of 2024. Despite a significant 13.6% decline in the construction sector, mainly in France and Europe. The fall in construction activity, down to 943 million euros from 1.091 billion the previous year, contrasts with the strong 15.2% increase in the energy sector, which reached 1.6 billion euros. Eiffage’s real estate business also suffered a 23.6% decline, due to a slowdown in new housing reservations, although order bookings in this segment rose slightly by 3% to 5.1 billion euros.
Impact of major contracts and concessions
Concessions activities grew by 5.4%, generating sales of 880 million euros. Infrastructure sales also grew by 8.2% to 1.75 billion euros. The APRR and AREA motorway networks, excluding construction, generated sales of 701 million euros, an increase of 2.3% despite a slight 0.8% drop in traffic. In particular, the Millau Viaduct recorded an impressive 12.7% increase in traffic and a 26.4% rise in sales to 12 million euros.
New developments and forecasts
Eiffage’s overall order book climbed 40% year-on-year, thanks in particular to two major infrastructure contracts won at the end of 2023. These projects include civil engineering work for the first two EPR2 reactors at Penly and the design-build contract for a section of Line 15 East of the Grand Paris Express metro system. In addition, Eiffage recently acquired 100% of Germany’s Eqos, a specialist in energy infrastructure, a transaction that should be finalized by the end of 2024. The Group confirms its financial forecasts for the year, with an increase in net profit and operating margin, despite the potential impact of the new long-distance transport infrastructure tax imposed by the government.
Eiffage continues to diversify its activities by strengthening its commitment to the energy and large infrastructure sectors, thereby offsetting the challenges encountered in construction and real estate. Eiffage’s strategy of concentrating on more profitable and less volatile segments seems to be bearing fruit, positioning the Group solidly for the future.
