Bouygues Earnings: Strong Equans Performance Sends Shares Up; Maintaining EUR 35 Fair Value Estimate

Bouygues reported strong 2023 results with sales up 26% year on year and up 3% on an adjusted basis, led by strong performance in Equans and its construction business. Prices were up 5.5% in early trading on Feb. 27. The Equans backlog, which includes Bouygues energies and services, fell 4% to EUR 24.7 million, but reflects its selective approach, which started in 2023, toward more profitable projects and something we look favorably on. EBIT for 2023 was EUR 545 million, an increase of 31% year on year. The margins also expanded 60 basis points to 2.9%, with the estimated backlog underlying the margin indicating possible future improvements.