Bureau Veritas S.A.

The company reported H1 2026 revenue of EUR 3.3 billion and 5% organic growth, with Q2 organic growth at 5.5%. Adjusted operating margin reached 15.5%, up 29 basis points at constant currency and 15 basis points reported, while adjusted EPS increased 9.8% at constant currency. Free cash flow was EUR 158 million, net financial expense was EUR 55.5 million, the adjusted effective tax rate was 29%, and working capital stood at 6.8% of revenue. For 2026, management now expects mid- to high single-digit organic revenue growth on the new scope, with continued margin improvement at constant currency and strong cash generation.

Hinda Gharbi framed the half as evidence that LEAP | 28 is accelerating, saying Bureau Veritas is reshaping its portfolio toward higher-growth, higher-margin and more resilient markets. She highlighted strong momentum in Marine & Offshore and Buildings & Infrastructure, solid geography-wide growth, and double-digit growth in data centers, oil and gas CapEx, and Metals & Minerals. Her tone was confident but pragmatic: she acknowledged weak spots in Certification and some commodities exposure tied to Middle East disruption, while emphasizing that the company is actively fixing those areas and will update investors further at the September Capital Markets Day.

François Chabas focused on the quality of the financial progression: 5% organic growth, 29 bps of constant-currency margin expansion, and 9.8% EPS growth at constant currency. He said the margin improvement came from 2024 restructuring, tight cost discipline, and portfolio mix, partly offset by Middle East impacts, and noted that scope added 22 bps from exiting less profitable activities and acquiring more profitable ones. He also pointed to EUR 158 million of free cash flow, working capital at 6.8% of revenue, net financial expense of EUR 55.5 million, and a broadly stable 29% tax rate, while saying the new reporting perimeter better reflects the company’s growth and profitability profile.

Analysts pressed on why margin guidance was unchanged despite higher growth guidance and the exit of lower-margin businesses; management said the plan already assumes both performance programs and portfolio reshaping, and that it is also investing for modernization, including AI later on. Questions also focused on Certification’s weak performance, where management said the issue is operational and sales-execution related rather than a market slowdown, with reviews and sales efforts underway and an expected H2 recovery. Other questions covered the Government Services exit, which management said will be managed contract by contract with customer continuity in mind, and the compliance provision, which they said reflects their best estimate of the full financial impact.