3 findings from Bouygues’ first quarter results

The Bouygues Construction logo displayed on the side of a building. (Image: Adobe Stock)

Overall, Bouygues reported €12.3 billion (US$13.2 billion) in sales for the quarter, a 3% increase over last year. The group recorded a loss of €146 million ($157 million).

1) Losses for Bouygues real estate unit

Bouygues Immobilier – the group’s real estate development and coordination wing – saw a 15% decrease in sales from the same period in 2023. Bringing in €281 million ($302 million) in the first quarter, Immobilier was one of only two Bouygues segments to see a decrease on revenue (the other being Bougues Telecom).

In its report, the group said Immobilier was ‘continuing to adapt to a challenging market environment’.

Backlog for real estate activity was reported down 29%.

In early April, the group announced initial steps to layoff as many as 225 employees.

While reservations for Immobilier were ‘stable’, single residential unit sales were down and commercial reservations were at a ‘standstill’.

2) Bouygues construction efforts showing growth

While real estate activities took a dip, the group’s construction unit saw an overall uptick of 6% in the first quarter compared to last year.

In total, the group’s construction sectors reported €5.3 billion in revenue in the first quarter of 2024.

The Equans segment (data centres, ‘smart’ buildings, solar farms, and industrial projects) showed ‘strong order intake’, the company said, mainly driven by activites in Europe and the US.

Sales were reported up 5% with margins showing a 2.6% increase.

The report highlighted two major projects: Rabat hospital in Morocco (€460 million) and the Culcairn solar farm in New South Wales, Australia.

Bouygues also reported a nearly €15.7 billion ($16.9 billion) backlog for its construction segment, up 4% from the first quarter of 2023. The Equans segment backlog was reported at €26 billion ($28 billion).

3) International activity driving growth for Bouygues

Pascal Grangé, group deputy CEO and chief financial officer, said in the first quarter conference call that construction’s 6% year-over-year gain was ‘driven by international building’.

Bouygues Construction segments reported just more than €2 billion ($2.2 billion) in international revenue in the first quarter compared to €813 million ($874 million) in France. Compared to last year, that’s a 33% reduction from €1.2 billion ($1.3 billion) in-country and a 10% increase from €1.9 billion ($2 billion) outside France’s borders.

“International markets are a proportion that is growing gradually each year,” said Grangé, suggesting that French markets may have been negatively impacted by native elections.

According to Bouygues, the group is present in 80 countries worldwide.