France's Bouygues 9M sales stable, net profit drops on TF1 impairment

Overview

• France diversified services group's 9M 2026 sales stable at €41.6 bln

• Current operating profit from activities rose year-on-year, led by Equans

• Net profit fell, hit by €569 mln impairment on TF1 stake

Outlook

• Bouygues expects 2026 sales to be stable at constant exchange rates

• Company now expects 2026 COPA to increase slightly, revising previous guidance of record-high level

• Equans raises 2026 margin from activities target to at least 5.5%

Result Drivers

• EQUANS PERFORMANCE - Group said higher current operating profit was mainly driven by strong performance at Equans, with additional support from Bouygues Construction

• TELECOM DEPRECIATION - Bouygues Telecom's profit declined due to higher depreciation and amortisation following recent investments

• REAL ESTATE WEAKNESS - Bouygues Immobilier results were hurt by a deteriorating residential property market in France, with higher cancellations due to weaker consumer confidence and rising rates

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy."

• Wall Street's median 12-month price target for Bouygues SA is €56.00, about 33.4% above its November 4 closing price of €41.98

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Nov 5 - Bouygues lifts yearly profit forecast after strong nine-month performance

• Nov 4 - Construction firm Tutor Perini's Q3 revenue beats estimates

• Nov 4 - Canada's WSP Global Q3 revenue rises 16.6%, beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)