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Bouygues (A3/A-): 4Q23

BASIC INDUSTRIES

A strong set of quarterly numbers from Bouygues, outlook a little downbeat. Unlikely to move spreads

  • Q4 revenue beat expectations by +2%, adj. operating income by +4%.
  • FCF was strong at €1.2bn +17% vs consensus. Net debt -22% lower than expected at €6.25bn. Leverage down to 1.4x.
  • FY24 guidance is a little light on detail, “targeting sales and COPA for 2024 that are slightly up on 2023”. Confirms Equans’ (key growth driver) mid-term targets, which may imply a tougher path in 2024. No commentary on M&A.
  • As we flagged in our preview yesterday, benchmark ENFP 4.625 06/32 have outperformed slightly, ~18bp tighter YTD.
  • Webcast 11am CET https://channel.royalcast.com/bouyguesen/#!/bouyguesen/20240227_1

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