Bouygues S.A.

Bouygues reported H1 2026 revenue of EUR 26.3 billion, down 2.2% overall and down 1.3% on a constant forex basis, with COPA up EUR 33 million to EUR 829 million. Net income group share was EUR 287 million, up EUR 114 million year on year, despite a French large-company tax surcharge of EUR 35 million to EUR 39 million mentioned on the call. Net financial debt was EUR 6.5 billion at 30 June 2026 versus EUR 8.5 billion at 30 June 2025. By segment, Equans revenue was EUR 8.9 billion, down 3% on a constant forex basis, but COPA rose to EUR 460 million and margin improved to 5.2% from 4.0%; Bouygues Telecom posted EBITDA after leases of EUR 954 million and current operating profit from activities of EUR 274 million; Construction revenue was EUR 12.4 billion, down 2% but stable on a constant scope and forex basis. For 2026, the group guided to stable sales at constant exchange rates and record-high COPA, with Equans expected to remain stable in revenue and around 5.2% margin, Bouygues Telecom sales close to 2025, gross CapEx close to EUR 1.3 billion excluding frequencies, and free cash flow before working capital requirements around EUR 600 million excluding La Poste Telecom and before the tax surcharge (around EUR 500 million including both).

Olivier Roussat emphasized that the first half was “extremely robust” despite a very uncertain geopolitical and macro backdrop. He highlighted Equans’ turnaround, strong order-book momentum, the benefits of geographic expansion through acquisitions in Germany and the U.S., and the group’s diversified portfolio as key supports to resilience. He also repeatedly framed the outlook with prudence, saying the group is confirming guidance rather than upgrading it because the year is not over and volatility remains high.

Stéphane Stoll focused on the quality of the financial profile: net debt improved by EUR 2 billion year on year, net gearing fell to 46% from 62%, and liquidity was almost EUR 16 billion, including EUR 4.2 billion of cash and EUR 11.5 billion of undrawn facilities. He explained that net debt seasonally rose to EUR 6.5 billion in June, driven by acquisitions net of disposals of EUR 133 million, dividends of EUR 924 million, and operations/other of EUR 1.3 billion, while free cash flow before working capital requirements was EUR 360 million versus EUR 440 million last year and CapEx excluding frequencies was about EUR 900 million, down about EUR 100 million. He also noted EUR 173 million of income tax plus a EUR 39 million surcharge in H1, and said Moody’s kept an A3 rating with stable outlook while S&P kept A- with negative credit watch after the SFR MoU.

Analysts pressed on why group guidance was not raised despite strong Equans order intake and improved construction/backlog trends. Management said the group is being prudent because the environment is still uncertain, the order intake in large projects takes time to convert into revenue, and some benefits are more midterm than immediate. On Equans, management said the Q2 5.6% margin included nonrecurring items and the recurring margin was closer to 5.2%, with more growth expected later as projects such as data centers move from backlog into execution. Questions on telecom competition focused on mobile pricing and ABPU; Bouygues Telecom said the market is mature and highly competitive at entry level, so ABPU can keep drifting down even as churn falls and customer additions remain strong.