This article first appeared on GuruFocus .
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Revenue:Group sales increased 2.3% in the first half, with 1.1% organic growth.
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Operating Result:Recurring operating income rose by EUR 20 million, up 11.6% to EUR 28 million, with the operating margin at 2.8%.
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Net Income:Net profit group share increased by over 12% to EUR 342 million.
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Free Cash Flow:Free cash flow was negative at EUR 75 million, compared to negative EUR 90 million in the first half of 2025.
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Net Debt:Net debt decreased by over EUR 500 million over 12 months to EUR 9.4 billion, after EUR 1 billion in external growth investments.
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Order Book:Order book grew 7% year-over-year to a historic level of EUR 31.5 billion, progressing across all business lines.
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Contracting Revenue:Contracting sales increased 2.8% in the first half, with a stronger 4.8% growth in the second quarter.
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Contracting Margin:Operational margin in contracting improved by 20 basis points.
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Infrastructure Revenue:Road activity declined 4.2%, impacted by lower public orders from local authorities.
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Energy Systems Revenue:Energy systems branch grew 4.8% (2% organic), with a strong second quarter at 4.1% organic growth.
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Energy Systems Margin:Operational margins in energy systems increased by 30 basis points to 5.2%.
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Construction Revenue:Construction activity returned to growth, with revenue up 5% in the second quarter.
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Concessions Traffic:Light vehicle traffic on APRR motorways decreased 2.5% in the first half, while HGV traffic increased 2.4%.
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GetLink Contribution:Profit share from GetLink was EUR 34 million, with EUR 129 million in dividends received in June.
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Acquisitions:External growth investments totaled EUR 204 million in the first half, including acquisitions in Germany and Luxembourg.
Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Order book grew 7% year-over-year to a record 31.5 billion, with growth across all business lines, providing strong medium-term visibility.
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Construction returned to growth with sales up 2.8% in H1 and 4.8% in Q2, and operational margin improved by 20 basis points.
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Energy Systems delivered solid growth of 4.8% (2% organic) with margin expansion of 30 basis points, driven by strong European performance.
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Net profit group share increased by over 12%, and net debt decreased by over 500 million over 12 months despite 1 billion in external growth investments.
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European expansion remains dynamic with over 8% real growth outside France, supported by strong markets in Germany, Spain, and the Netherlands.
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Strategic acquisitions (Hand und Werk, Klaus Heidemann, Bartz Group) strengthen capabilities in data centers, electrical systems, and Luxembourg construction.
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Concessions portfolio is being renewed with increased stake in Getlink (29.4%) and new PPP contracts like the Greater Paris heating network.
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Strong positioning in long-term trends: electrification, new mobilities, and climate adaptation, with major projects like EPR2 and HS2.
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Free cash flow in H1 was stable year-on-year, and the company expects a strong H2 due to seasonality.
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Improved ESG ratings (EcoVadis, MSCI) and a new climate report underscore commitment to sustainability.
Negative Points
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Motorway traffic for light vehicles decreased by 2.5% in H1 due to high fuel prices from Middle East conflicts, impacting concession performance.
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Concession revenues and EBITDA margins are under pressure, with APRR traffic down 3.4% and margins diluted by service area expansion.
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Infrastructure activity declined 5% in road works due to lower public orders from local authorities, not fully offset by private demand.
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Working capital requirements increased in H1, partly due to lower major EPC contracts, though the impact is relatively small.
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The company expects concession sales and operating results to slightly decrease in 2026 due to ongoing traffic weakness.
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Residential real estate market remains weak with a 'wait-and-see' attitude, and no substantial improvement is expected before 2027.
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Data center hyperscale projects are slow to materialize due to long administrative processes and risk management, limiting near-term growth.
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Free cash flow is structurally weak in H1, and the company faces higher interest expenses despite lower net debt.
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The German stimulus package is progressing slower than hoped, though it is already contributing to growth.
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SunAgri, the agrivoltaics concession, is still loss-making and not expected to break even for two years.
Q & A Highlights
Q: What actions has Eiffage taken to offset the decrease in motorway traffic, and what are the expected trends for the rest of the year? A: Benoit de Ruffray (Chairman and CEO) explained that the decrease in light vehicle (LV) traffic is due to the persistence of high fuel prices following the Middle East conflict. To counter this, the company has implemented cost-saving measures across operations and HR, while prioritizing the safety of teams and customers. He noted that HGV traffic remains sustained at around 1% growth. The company is prepared to adjust its measures if traffic picks up, but for now, the trend observed since March is expected to continue through the summer.
Q: Can you elaborate on the drivers behind the 30 basis point margin increase in the Energy Systems branch, and is this sustainable? A: Ludovic (via Benoit de Ruffray) stated that the margin increase is driven by a focus on selectiveness of business and operational efficiency in France, where organic growth is less dynamic. In Europe, the strong organic growth (6.2%) is a key contributor. The CEO added that the 30 basis point improvement is seen both in France and Europe, demonstrating the effectiveness of the teams' performance and the long-term strategy of selective deal-making, making them confident in maintaining this margin trajectory.
Q: What is Eiffage's strategy and outlook for the data center market, particularly regarding hyperscale projects? A: Benoit de Ruffray clarified that Eiffage is focused on data center opportunities only in countries where they are already established (France, Germany, Spain, Belgium, Netherlands). They are cautious about hyperscale projects due to high risks and long lead times. The company is finalizing its first hyperscale project in France and aims to secure a second, with a goal of having two teams capable of handling such projects in France and one in Germany. They emphasize a "reasoned appetite" for these projects, prioritizing higher added value by providing both building and equipment, and do not expect a sudden massive order intake but rather steady growth.
Q: What is the company's view on the German stimulus package and its impact on Eiffage's activity? A: Benoit de Ruffray noted that the German plan is starting to show first effects, offsetting the end of the A3 motorway project. There is strong activity from Deutsche Bahn and a move towards more collaborative models. While the speed of implementation is limited by Germany's engineering capacity, Eiffage, as an established player, is a primary beneficiary. The CEO highlighted that the plan is also making the construction sector more attractive for recruiting talent, which is a very positive medium to long-term sign. Growth is also seen in high-voltage networks for the energy transition.
Q: What is Eiffage's stance on the potential retender of the SANEF motorway concession, and what is the company's intention regarding its stake in Getlink? A: Benoit de Ruffray stated that the timeline for the SANEF retender is uncertain, as it depends on the outcome of the French presidential election in spring 2027. Given the three-year process for such a tender, more visibility will come after the election. He confirmed Eiffage's interest in the next motorway concession tender. Regarding Getlink, the CEO reiterated that it is an important long-term asset, and the company is ready to strengthen its position (currently at 29.4%) depending on market conditions, following its fifth acquisition of shares in March.
Q: Can you provide more detail on the increase in working capital requirements (WCR) in the first half? A: Christian Cassayre (CFO) explained that the increase in WCR is not due to changes in client payment behavior or collection policies. It is primarily a consequence of higher activity levels and the timing of major contracts. He noted that the slight erosion is relatively small (100 million on 12 billion of activity) and is linked to a lesser proportion of major EPC contracts in the order book, which can have different milestone payment structures.
Q: What is your outlook for the offshore wind sector, and how is Eiffage positioned? A: The management sees the offshore wind market as well-oriented, with significant investment in offshore substations by distribution companies (e.g., in Belgium and the UK). While there was a slight drop in developer activity due to price adjustments, markets are recovering, as seen in the UK and France with new tender activity. Eiffage is seeing a balance in the market for foundations and substations, and views the sector as positive for future growth.
Q: What is the company's M&A pipeline and strategy for external growth? A: Benoit de Ruffray stated that Eiffage's M&A strategy remains focused on strengthening its presence in countries where it already operates, either to enter new markets or develop new expertise. The Energy Systems branch is the most active in this regard. While there are no immediate plans for Eastern Europe, the company remains opportunistic and is considering opportunities in countries like Poland, where it already has a presence. The recent acquisition of Bartz Group in Luxembourg is an example of scaling up in a specific market.
Q: What are the expectations for the French residential real estate market in 2027? A: Management described the context as deteriorated with a "wait and see" attitude due to the political and budgetary situation. They do not anticipate a substantial improvement before the end of 2026 or into 2027. However, they note that housing needs remain high, and their teams are working on adapting their commercial offer, focusing on cost-controlled acquisitions and industrial solutions to be ready for a rebound in confidence.
Q: Regarding the free cash flow, which was down in the first half, can we expect a similar recovery in the second half as in previous years? A: Christian Cassayre confirmed that the company expects the same trend as in previous years, with the majority of cash flow generated in the second half due to the seasonality of the business. The goal is to have a second half compliant with last year's performance, although motorway free cash flow is expected to be lower. The exact outcome will depend on the ability to contract projects in H2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
