Vinci’s half year financial results driven by ‘powerful megatrends’

Vinci is working on the Grand Paris Express project in France

Vinci has published its financial results for the first half of 2023, revealing that its construction division had revenue of €14.9 billion (US$16.4 billion), up 11% on an actual basis and up 12% on a like-for-like basis compared with the first half of 2022.

The company – one of the world’s largest construction contractors – saw its home market of France make up 46% of the total revenue with sales of €6.8 billion (US$7.5 billion), an increase of 7% from the same period last year.

Business levels remained steady in civil engineering. In the building segment, business was driven by rehabilitation projects and by the construction of public buildings, particularly in the hospital sector.

Outside France (54% of the total), revenue amounted to €8.1 billion (US$8.9 billion), up 15% on an actual basis and up 16% on a like-for-like basis. This is said to reflect progress with several large civil engineering contracts in Europe, North America, Australia and New Zealand, along with solid business levels in speciality networks and proximity networks.

“Vinci Construction, whose new organisation has now been in place for two years, achieved firm business levels both in France and internationally, and improved its operating margin by being even more selective when taking on new projects,” said Xavier Huillard, Vinci’s Chairman and CEO.

“The Energy business, which is being driven by powerful megatrends related to the energy transition, saw business levels rise sharply, with margins up for both Vinci Energies and Cobra IS.”

Huillard added that the company’s order book was at a “record level.”

The Concessions, Energy and Construction firm reported overall sales for its divisions was €32.3 billion (US$35.6 billion), an increase of 13.5% from the first half of 2022.

Vinci added that for the rest of 2023 it is expecting a further increase – although more limited than in 2022 – in revenue and operating income and a net income slightly higher than the level achieved in 2022, despite a substantial increase in financial costs.

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