Vinci: Impressive First-Quarter Revenue Growth Supported by Ongoing Recovery in Airport Passengers

Narrow-moat Vinci reported impressive organic revenue growth of 14% during the first quarter, highlighting the defensive characteristics of the business. Growth was broad-based across operating segments, however, the ongoing recovery in passenger numbers across its airports, albeit still 12% below prepandemic levels, continues to outperform the remainder of the business. Its more cyclical construction segment has remained largely shielded from higher interest rates for the time being, due to its involvement in numerous major infrastructure projects and a healthy order backlog. Management confirmed guidance provided at the end of 2022. Shares are trading at a slight discount to our EUR 116 fair value estimate, which we maintain.