(BFM Stock Exchange) – The conglomerate present in construction, telecoms, media and technical services published a profitability greater than expectations in the first quarter. Cash consumption has also been clearly reduced.

When Bouygues decides, in 2021, to buy the coveted Equans (Spie and Eiffage were also on the ranks), the market has walled. The conglomerate present in construction, media, telecoms and road work had paid more than 6.1 billion euros to take over this ex-Filiale of Engie specializing in multi-technical services (ventilation, heating, fire protection). The title had unscrewed 6% on the day of the announcement of the promise to buy.

In addition to the high price, analysts pointed out a difficult or even Herculean site for Bouygues: to square the profitability of Equans – around 2%in 2022 for the current operating margin of activity – to bring it closer to the best students in the sector, like Spie (6%-7%).

Four years later, it must be noted that Bouygues gives matter to believe in this recovery. This is still the case in the first quarter of 2025.

Bouygues, from January to March, achieved a global turnover online with expectations, at 12.59 billion euros. The income increased by 2.2% in published data, supported above all by the consolidation of La Poste Telecom, a virtual telecom operator bought last year. Excluding exchange effects and perimeter, turnover increased by 0.9%.

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The highest increase in CAC 40

Profitability has, on the contrary, took speed analysts. Bouygues generated a current operating profit of activities of 69 million euros, compared to 26 million euros a year earlier. According to a consensus put online by Bouygues, analysts were tabling on an amount of 35 million euros. The corresponding margin was 0.5% against 0.2% over the first three months of 2024.

Equans was the engine for improving profitability. The subsidiary has identified a current operating profit increased by 33% over one year to 177 million euros, while the corresponding margin increased from 0.9 percentage points to 3.8%.

“This improvement underlines the progress of Equans and the effective implementation of the Performing Plan (the profitability recovery plan presented in early 2023 by Bouygues, editor’s note) in all operational units,” notes the independent AlphaValue design office.

A good omen for achieving the annual objective of margin of Equans set at 4%, before 5%in 2027. Bouygues has also slightly changed its perspective for this year, believing that the rate could be “possibly slightly higher” to 4%.

Apart from the profitability of Equans, Bouygues has reduced its cash consumption, with a negative cash flow of 79 million euros in the first quarter against a disbursement of 301 million euros a year earlier.

The conglomerate has, at the end of this publication, confirmed all of its objectives for 2025 at the level of the group, namely a slight growth in turnover and the operating profit current activity.

“The title should react well to the publication and especially to the very good free cash flow” and the prospects for Equans, wrote Oddo BHF in a note published before the opening of the market.

Indeed, the Bouygues action climbs by 3.6% around 3 p.m. and quite far from the highest increase in the CAC 40.

In the same sector, Eiffage took 1.7% after publishing its income from the first quarter. The construction and concession company (airports, highways) is progressing on the stock market after having published an activity deemed “solid” by Stifel.