Full Year 2024 Spie SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aleksander Peterc - Bernstein Autonomous LLP - Analyst : Yes, good morning, and thank you for taking my question. I have just two on business areas. So in Central Europe, you mentioned that there was some catch up of the mist in the previous quarter in high voltage in Eastern Europe, and so this catch up was partially in Q4. So should we expect a continuation of this catch up into the current quarter and more generally have the high comps now washed out of the base, particularly in Switzerland. That weight on this geography throughout 2024. That's my first one. The second one is in global services energy. We saw the expected normalization of revenue trends after the very strong first half of this area. Now, should we expect in the first half of '25 a noticeable decline given that you had some sizable, more or less one-off contracts in '24, H1? Thank you.

Question: Aleksander Peterc - Bernstein Autonomous LLP - Analyst : That's great, thank you very much.

Question: Remi Grenu - Morgan Stanley - Analyst : Morning. Thank you for taking my question, three if I may. So the first one is probably not going to come as a huge surprise, but just wanted to have your thoughts on the decision by the upcoming German government to increase [infra spend]. How are you thinking about the potential impact on speed, whether it's about securing the pipeline, accelerating it, or incrementally positive. So that's the first one. The second one is on the [TND] activity specifically which seems to have experienced a little bit of an acceleration as expected. I guess what I wanted to ask was about the size of the backlog and whether you're still facing some constraints on the supply chain and the hiring there. So should we see this acceleration, can you further accelerate the organic growth you think this year, or is it about increasing the size of that backlog and the visibility? So that's the question on CMD and then the third one is on. On the guidance for top line, I guess with the M&A embark you're probably already above EUR10 billion, so I understand the guidance is well above EUR10 billion, but can you help us quantify a little bit what you expect for 2025 organic growth? Should we expect it to be stable, below or above 2024, for example? And if you can tell us more about the phasing of that growth in 2025.

Question: Remi Grenu - Morgan Stanley - Analyst : Okay, understood. Thanks very much.

Question: Rorie McKenzie - UBS AG - Analyst : Good morning. It's Rorie here. Two questions on Germany, please. Firstly, the German margins, which were up a good 90 bps in the year. Keen to say how much of that was M&A. And then in terms of the underlying margin in Germany, can you talk about how much comes from mix or like for like improvement. Now, for example, we know that transmission distribution is growing faster than average and has perhaps more like low double digit margins that have those margins in themselves improved over the past year. And then secondly wanted to ask about your German positioning overall with (inaudible) and ICG, it feels like you've really kind of broadened the exposures overall. So could you give us perhaps the latest breakdown by sector or your activities in Germany and what are the plans around, bringing these all together into kind of one platform? Thank you.

Question: Rorie McKenzie - UBS AG - Analyst : That's great, thank you.

Question: Eric Lemarie - CIC Market Solutions - Analyst : Yes, good morning. Thanks for taking my question. I've got three. First, as you mentioned, 2024 has been very dynamic in terms of acquisition, and you mentioned the pipeline is good, but how is the pipeline today compared with the pipeline last year? Do you think it, or do you consider it as healthy as it used to be, and are you still comfortable with the multiple payroll and the multiples asked by the sellers. And maybe you could share with us the average multiple paid in 2024 for acquisition. This is my first question. I've got a second question on the possible impact of the copper supply unbalance, do you think it could be a threat in the future for your business or a long term question, I guess. And the last question on global services and energy division, do you think the double-digit margin is sustainable? Thank you.

Question: Eric Lemarie - CIC Market Solutions - Analyst : Thank you.

Question: Augustin Cendre - Stifel - Analyst : Yeah, thank you for taking my questions. I've got three, if I may. The first one is on your Northwestern Europe performance in Q4. It looked actually quite strong, up 12% organically. I know you talked about 2025 being relatively strong in that division, but I was wondering what happened in that division in Q4 to have such a strong organic growth and is that the level that you're targeting for the growth level that you're targeting for 2025? My second question relates to the corporate tax impact in France. I don't think you've given an estimate of the new law of the new budget for 2025. So could you give us an indication of what you expect it to be in 2025? And finally, on your margin guidance, you guide for an improvement of the margin. Do you -- could you give us maybe more insight into your work and assumption for the current perimeter in 2025? Any indication would be helpful. Thanks.

Question: Augustin Cendre - Stifel - Analyst : Thank you. If I may add just one question, I was wondering if you could give us an update on the ICG integration and the various steps you have to do going forward.

Question: Augustin Cendre - Stifel - Analyst : Thank you very much.