Research Update: French Environmental And Energy Group Veolia Affirmed At 'BBB/A-2' On Solid Plan Execution; Outlook Stable

French environmental and energy group Veolia Environnement S.A. is executing on its 2024-2027 strategic plan in line with our expectations. It delivered solid 2024 operational and financial performance. The group's focus on profitable growth in water, waste, energy, and strong cost efficiency, supported S&P Global Ratings-adjusted EBITDA growth of about 3%, helped mitigate foreign exchange effects, and lowered scope effects. We anticipate the group will generate positive discretionary cash flow (DCF) over 2025-2027, thanks to disciplined investments at about €3.3 billion, further bolt-on acquisitions for about €1 billion partly funded by asset rotation, and an increase in dividends from €1.3 billion in 2025 up to €1.65 in 2027. The share buyback program of up to 2% of the group's shares

...- French environmental and energy group Veolia Environnement S.A. is executing on its 2024-2027 strategic plan in line with our expectations. It delivered solid 2024 operational and financial performance. The group's focus on profitable growth in water, waste, energy, and strong cost efficiency, supported S&P Global Ratings-adjusted EBITDA growth of about 3%, helped mitigate foreign exchange effects, and lowered scope effects. - We anticipate the group will generate positive discretionary cash flow (DCF) over 2025-2027, thanks to disciplined investments at about 3.3 billion, further bolt-on acquisitions for about 1 billion partly funded by asset rotation, and an increase in dividends from 1.3 billion in 2025 up to 1.65 in 2027. The share buyback program of up to 2% of the group's shares over the period should be cash flow neutral and conditioned on the successful employee shareholding capital program. - We have revised our assessment of Veolia's liquidity to adequate from strong to reflect...

Research Update