Eiffage SA (FGR) Earnings Call Transcript & Summary

As said in February 2006, the group has a strategy, which is affirmed borne by the long-term trends. Sovereignty of energy, development of new mobilities, necessary adaptation to the climate change facing extreme events that go on one after the other and extend on the whole European territory. Those trends will need investments, public as well as private remaining powerful drivers for growth in the medium and long term for our group. Let's move to the highlights of the first half year. It's characterized by results and increasing outcome as expected. In the works, operational performance is solid and visibility remains very good with an order book again growth over year and progressing on all of the branches -- lines of business. In the concessions performance is impacted by the decrease of the motorway traffic of the LVs given the persistence of the oil price, which is high, direct consequence of the Middle East conflict. These results enable us to confirm the perspectives of the increase of activity and results for the group in 2006. The construction line is back to growth. Commercial activity remained dynamic with some very beautiful operations. You can here see the contract attributed by RTE to the team's work and services for the construction of the 5 years of 450 modular buildings industrialized, which are meant to be installed in electrical stations on all of the French territory. It mobilizes 70 agencies all over the French territory. At [ Mont ] [indiscernible], our team secured a new contract in design build for the construction of the [ Jandamarie ] and 58 housing units with an approach allowing environmental performance and quality of use. Eiffage construction supports the transformation of the campus of [indiscernible] Business School Bay with the new contract of energy renovation of a building and the construction of an extension for a modernized learning center with better environmental performances. Corporation led an occupied site within a campus welcoming over 4,500 students. In the infrastructure, Eiffage Civil has a stable activity in France and remains supported by major projects. Eiffage Route sees its activity contracting by 5%, impacted mainly by the decrease of public order from the local authorities, which is not offset by private order, which remains still growing. Neither with the participation in some major projects of the group. Eiffage [ Metal ] France is in strong growth, thanks to the wind farm projects for RTE and directed through the projects of Atlantic. You can see on the screen the contract devoted to Eiffage Civil by SNCF [indiscernible] for the construction of bridges of the line on the Canal North Europe, a bridge of 908 meters and a viaduct of 77 meters span. Eiffage Metal and Eiffage [ Gera ] are also intervening on this project. After a recent collaboration led and success on the [indiscernible] Point C in the U.K., Eiffage Metal signed with [ Arabel ] Solutions subsidiary of EDF, a long-term partnership, 12 years for the manufacturing in its and Lauterbourg components for heat exchangers for nuclear plants in France and Europe. This partnership consolidates the position of Eiffage Metal as a historical player and equipment provider of first line in the nuclear sector. It is on the location of Lauterbourg that has prepared the manufacturer of metallic elements of structure for the [ EPR2 ] in [ Panli ]. The energy system branch has an activity and slight growth in France, thanks to a second queue, more dynamic than the first. The CNES and [ ESA ] devoted to a French consortium, Franco-German under the [ Aegis ] of Eiffage System the implementation of the new wind farm on the spatial Port European, enabling the production of hydrogen, low-carbon hydrogen for [ Ariane ] 6. At the same time, Eiffage Route is revamping ways and roads for the heavy-duty road for the launching pad. Eiffage Energy System has been selected by [ Campus ] AI for the implementation of the electrical substation high voltage infrastructure for its campus [ Fuji ] for an amount of EUR 120 million. [ Eiffage Civil and Eiffage Metal ] are also mobilized. This starts the project in its operational phase. As during the past, the group leverages also its compactness to make a difference mobilizing its different expertise as to win multiline of business contracts. Eiffage Construction has been appointed lead contract -- lead contractor recruitment of a design build with Eiffage Route and Eiffage Energy System for the building of a cultural center and green public spaces at the center of [indiscernible]. And finally, Eiffage Construction has been selected for the implementation of the first stage of the convergence project in, a building of 38,400 square meters. Eiffage Energy System has been awarded a contract for high and low voltage. And the City of Paris, the Bank of the territories and the Group [ Daltia ] Eiffage Solution have signed the articles of incorporation of the single-purpose PPP holder of the heating concession contract for Greater Paris. [ CMOP ] created for the execution of this contract will make sure that the public service will be continued for a duration of 25 years. It will be in charge of the operation, modernization and [ deconization ] of the heating system of Paris. Urban infrastructure, which is a major one at the city level, which is supplying above 1 million people in Paris and in the surrounding municipalities. The first half year has also been highlighted by many deliveries. Eiffage [indiscernible] has delivered a turnkey project on [ Campus de Par ], enabling to offer a second life to the old Architectural School of None, an iconic building of the '70s. Besides the renovation of the building, the project encompassed the building of three new buildings. Our teams also delivered the [indiscernible], a renovation of high technicity of a real estate of 18,000 square meters. The operation carried out by [ Fresh ] Construction was highlighted by a dense urban environment partially occupied. Our facade builder [ Goyer ] Fresh Meta also took part in this project. We also started a new project as the adaptable high service intensity residence of 319 housing units in [ DIP ], a real estate program thought to be evolved after the departure of the workers of the project of [ EPR2 ] to welcome tenants of the housing provided by [indiscernible]. It's one of the three operations supported by Eiffage [indiscernible] to support Eiffage operation in [ EPR2 ] in Tong, enabling to provide 1,300 housing units. Eiffage construction also started the works of Campus University [ Grand Paris Nor ] on over 77,000 square meters of project encompasses four buildings devoted to teaching, research, lecture halls and the convention center. It leverages also the electric works for energy system and Eiffage system for the operation and maintenance for 12 years. On the roads, it's in an urban environment that our teams are leveraging their expertise by implementing a double landscape cycle path of 2.6 kilometers at [ Ulan Pirbenit ]. It's the longest section of this cycle path. Eiffage inaugurated the project of renovation of the site of the plant over [ Omaha ] Beach aimed at improving conditions of welcome of the public and matching the threats of erosion. The works included the welding of the parking, the security of the cycle path, modification of the welcome building and the redesigning of the visitor circuit with our [ Bioclared ] natural surface. After having dug over 2.5 kilometers, one of the borer was transferred in April to start the digging of over 2 kilometers, a logistic complex impressive thing with the transportation on 3 kilometers of the disc of [indiscernible] cutting disk of over 150 tonnes. And the works of [ Penley ] has moved on this summer with many important steps. The junction with the new embankment has become a reality with over 8,100 blocks of concrete delivered. This link will enable us to finalize the platform's one of the war freeing spaces, which are important for the project to come. We have also implemented 2 million square cubic meters of earthworks and got the first block of factory on its concrete. The teams of Eiffage Rail finalized the works of replacement of the trucks on LGV North in the Avila. This project led for the -- on behalf of SNCF [indiscernible] are an important part, an important stage in the modernization of the network. Eiffage Metal finalized also works on modernization of a pipe circuit as well as dismantling of installation and isolation -- thermal installation of new lines of a food processing plant. Eiffage Energy System and [ Genisivile ] implemented a double link underground link of 320 kilovolts over 40 kilometers in the north of Britain in the framework of a work of interconnection -- electric interconnection between France and Ireland. Eiffage Connection, Eiffage Energy System finalized the construction of a new Court of Justice in [ Lille ], a building of 24,000 square meters, meeting a specification, which is very demanding facades and concrete in color. The delivery and the durations are moving one after the other on the [ Novay ] project for the Ministry of the Army and its planned ambition families. The company is at its operational peak with an average of 150 projects worked on simultaneously. And [ Novay ] delivered over 1,500 housing units. For my part, I took part in the inauguration of the [ Varex ] in Versailles for over 100 renovated housing units. After this vision of this order book and activity in France. Let's move to the European part. As anticipated, the growth of activity is less important than in '25, but it remains very dynamic with over 8% of growth, real growth in Europe outside of France, 4.7% in organic growth. Development of the group, as alluded in February, remains supported by its exposure to great trends of electrification, digitization and sovereignty, but also to its exposure to the trend of our markets in Germany, Spain and the Netherlands. Activity, commercial activity remained very dynamic in our implantation countries. In Poland, Eiffage Mobility will transform the most ancient depot of Trains in [ Poznan ] implemented over 130 years ago. The space will be renovated and requalified, including the building of two residential buildings of 230 housing units and the renovation of the main building of the depot as well as the historic buildings. In [ Wroswaf ], we will implement for the past 2 years, one of the major residential projects ever implemented in Poland. We just signed the last stage. It's a real estate program of three buildings erected on a former train site location on the banks of the [ Oura ] offering 500,000 units for rental. In Germany, the local teams of Eiffage Civil will implement for the account of the city of Nuremberg, the replacement of 2 bridges as well as the access roads, a market of EUR 95 million for Eiffage. The new roads, coupled with cycle and pedestrian path are within the relaunching, the restart of the renovations of the German infrastructure. In Germany, our Belgian subsidiary, Smelters won a contract in a joint venture of the contract for the construction of a conversion station of DC to be linked with [ NSC2 ] as of end of 2034. The contract encompasses the design of the system, the delivery of the pieces, the construction, the implementation sea and land as well as its commissioning. Negotiations are underway for a second project of a similar size. In the Netherlands, Eiffage [ Metal ] has been attributed a contract for the construction of two construction in metal construction, an arch one of 260 meters long and a mobile work of 53 meters for the new bridge of [ Merueden ]. [ Lens ] is in charge of engineering, manufacturing, delivery and installation of both structures. In Spain, Eiffage Energy Systems has secured the contract for the construction of the first center of data and data centers in Valencia, implementing mechanical insulation, low and high-voltage systems as well as voice and data. Still in Valencia, Eiffage Energy System has been awarded by the Municipal Company of Transport, the contract for the electrification of the bus depots. 24 points of recharge of charging for the electric buses, a smart system of energy management and adaptation of infrastructures to meet the growth of the fleet. Activity side, as has been saying, with 8% growth in Europe outside of France remains very sustained. In Warsaw, we go on the renovation -- heavy renovation of an iconic building of modernism after war, transformed in a noble hotel, 100 luxury rooms, 80 private residency and cultural spaces close to the historic old city. In Spain, the inauguration of the first -- the future circuit of Formula 1, [ Mading], has taken place in June, 3 months after the first -- I mean, 3 months before the first Grand Prix in mid-September. As you see here, this has been implemented. Our teams also implemented in a record time, the building specific to the sports events all along the booth. In the province of Toledo, Eiffage Energy Systems is finalizing the works of the processing of the station of Loses implemented in joint venture with Eiffage construction. This project will replace an obsolete installation to enable the water renovation of the use for the population of 16,000 inhabitants. In Belgium, the project of the train station of [ Watiniz ] has officially started that will modernize the most frequented train station of [ Wallonia ], which is in-adapted to the needs today. In this framework, Eiffage construction will intervene in the destruction -- total destruction of the station as well as its rebuilding as well as the surroundings. On the motorway A3, the 76 kilometer six ways driven by Eiffage Concession and implemented by our teams of Eiffage Civil have been officially opened to the circular to traffic on August 3 in presence of the cabinet ministers. With a total cost of EUR 2.8 billion for the extension, operation and maintenance over 30 years, the project of PPP is currently the greatest project of this type in Germany. And Monte Carlo Monaco in the framework of the construction of the hospital Princess Grace, Eiffage Energy System was in charge of the five principal phases of the technical part of the Phase 1. commissioned end of June. The turnkey has been made in presence of Prince Albert to in mid-July. First patients will be welcomed in January '27. Beyond the organic growth, we have made also five external growth since January. They take part either in the strengthening of the territorial mesh or to the strengthening of our specialties and expertises. And [indiscernible] specialist in data centers offers a turnkey offer going from the design, building of the technical construction of buildings to the maintenance. 200 employees and implemented a sales of EUR 85 million in '25. [ Klaus Heidman Electro Lagen ] 300 employees enjoys a long experience in the design, installation and maintenance of electrical systems for customers from the tertiary, industrial and public sector. This acquisition enables to our Salvia subsidiary to widen its expertise and to strengthen its position on the market in the south of Germany. Finally, entities of work of the [ BAs ] Group, a family company created in 1938 for 170 employees, implementing in '25 a sales to the tune of EUR 150 million. This acquisition enables Eiffage Construction to strengthen and complete its know-how to become a first-line player of the construction and real estate in Luxembourg with a new group of over 750 employees and sales of over EUR 200 million. And in the concessions, we have strengthened our position as first shareholder of Getlink with 29.4% of the capital following the acquisition of 1.74% of the capital in March for an amount of EUR 167 million. It's our fifth acquisition since 2018. Our participation in Getlink is a masterpiece, among others, in the renewal of the portfolio of concessions of the group since Getlink is a concessionaire of the tunnel under the channel until 2086. Group goes on export mode on some projects, mobilizing its specialties. Contribution to this activity is as foreseen weaker than last year, direct outcome of the end of some major projects. Eiffage Energy System is building four solar farms and the linked to the Nor Atlas in Morocco with a total power of 225 megawatts. It will also be in charge of the operation and maintenance for 7 years. We're also in [ Benin ] where we implement the extension of the site of [ Eluoin ] with two no powerhouses of 25 megawatts each. This extension brings this capacity to 75 megawatts that will be one of the major solar farm of the country. In Norway, Eiffage Civil and Eiffage Metal implemented the first part of the motorway E18, including the Viaduct of Greenland that you see on screen, a major step on the strategic access between [ Oslo and Kristiansand ]. And in the U.K., we have crossed a major step on the high-speed line HS2 with the implementation of the last of the more 5,000 concrete segments, making the main structure of the tunnel shipping warden, tunnel of 2.5 kilometers within the trench then recovered by earth, contributing to a better integration of the high-speed line in the landscape as well as the reduction of the nuisance for the inhabitants sound nuance noise. In the airports, the traffic is in a slight growth. The half year has been highlighted by the implementation of the new contract of economic regulation of the airport of Toulouse for the period May '26 December 2030, an important step giving economic visibility over this period of time. And quite recently, we received the confirmation by the opening by United Airlines of a daily line with Washington as of April '27. In the motorway concessions, the traffic of light vehicles is globally decreased given the persistence of high fuel prices. Compared to the first half year '25, traffic has decreased by 2.5% with APRR. Until the beginning of the conflict in the Middle East, traffic was a decrease of 0.8% and of 3.3% between March and June '26. To be noticed, a good traffic HGV increased by 2.4% on the first half year. This summer, our teams inaugurated the A480 Rondo area ensure the widening of the motorway on 7.5 kilometers while maintaining the traffic of over 100,000 cars per day with an investment of EUR 300 million financed by the society, which is a concession. This operation proves the capacity of the concession model to deliver projects of collective interest within the territories, matching the stakes of mobility, quality of life and ecological environmental transition. It's one of the most important projects implemented in the past years on the conceded network. Already pioneered with 100% of service areas with a charging -- quick charge pass. APRR area goes under the development of infrastructure of charging posts on the network. Two partnerships have been signed. The agreement with [ Allego ] is foreseeing the equipment of 31 rest areas and five more service areas as of '27 and in partnership with Milan inauguration this summer of a new charging area for HEVs and [ JevanBertin ] on the A31, aiming at the growth of the users. Fully offers in France and Europe solutions to simplify the moves on the motorways like the batch of [ eTOL ] recharging cars or electric cars and stations at reduced prices. The has been the deployment of fully on four new areas on the PRA and the new area of [ Chandumur ] on the motorway A20. After this 360 of our activities, some highlights of our carbon strategy, improvement of rotation extra financial by the stakeholders, EcoVadis and MSCI, validating the robustness of our action plans on the pillars carbon climate, biodiversity, circular economy, health, security and governance. In terms of environmental strategy, we have published a new release of our climate report. It is putting in value our engagement for the transition of ecology and illustrating our determination to illustrate the climatic change in the evolution of our businesses. Decarbonization is a human challenge that is engaging our 90,000 employees. We implemented a global dynamic of training to the environmental challenges so that our employees will take ownership of the environmental structure of the group and be able to use it on a daily basis. Let's get to the major figures of the semester. Sales increased to the tune of 2.3% and the operational result increasing to EUR 20 million compared to the first half year '25. A solid performance in works construction with sales increasing by 2.8%, 4.8% in the second quarter and an improvement of 20 basis points of the operational margin. Performances of the concessions impacted by the decrease of the traffic of the LVs. Net result, group part is increasing by over 12%. Free cash flow, which was structurally weak in the first half year is at the same level as in '25. Net debt decreases over the 12 months by over EUR 500 million after EUR 1 billion investments of external growth. Finally, visibility of the group is comforted by an order book growing by 7% on the year to up to EUR 31.5 billion, progressing on all of its lines of business. As of the perspectives '26, in the concession, the ongoing conflict in the Middle East triggered a decrease of traffic of the light vehicles that has been noticed during the semester and during the summer. We foresee sales and an operational result slightly decreasing compared to '25. In works, the solid performance recorded in the first half year and noticeably during the second quarter leads us to foresee a figure slightly increasing for infrastructure and construction and a more sustained growth at Eiffage Energy System but at a lesser level than in '25. After this solid first half year, we are confident and we confirm our perspectives -- global perspectives of '26 of the increase of activity of the operational result and of the net result. Thank you for your attention, and I invite Christian Cassayre to give some detailed explanation of our financial elements.

Good evening, everyone. So I'll continue the presentation here with the figures more in detail. The group's activity, you can see has grown by 2.3% in the first half, so 1.1% being organic growth in the contracting. Remember, the first quarter was a bit flat and the second was much more sustained at 4.8% growth. So second quarter, 2.8% total over the half year then. So in Concessions, we see the opposite dynamic with net drop in auto traffic as of March due to the conflict in the Middle East. And so we see a slowing down in organic growth by 0.5% negative 0.4% following the disposal of [ Novay ]. So we'll see in a few minutes the figures per branch. So if we look at geographic zones here from the right over the past 5 years, you can see a strong dynamic. Our European markets outside of France, plus 8%, limited -- more limited growth, yet still positive in France at plus 2.2%. So in total, our target European market, France and outside of France, you can see in the gray column, we have 4.5% growth. Outside of Europe, we can see a bit of a slowdown, and that was at the end of many -- the ending of many infrastructure projects of the large size and an increase in external growth. So note that the figures for 2025 here, they are -- they've been retreated, readjusted with [ Goyer ] coming out of that. [ Sade ] company that was previously in infrastructure is now part of the construction -- the off-site construction section. All the history that you have over the past 5 years has been readjusted. Now as regards to results, aside from the allocation of [ Goyer ] being in the correct branch data for the first half, take into account revisions of provisions of IFRS 12, 31st of December 2025, you have the details in the annexes but a small impact. You have the note there on the bottom of the slide. The operating results, recurring operating, we have EUR 28 million, plus 11.6% at 2.8% with the consequence there being an increase of 20 basis points in margins for contracting. As regards to concessions, the drop is mainly due to the increase in amortization costs, which were not offset by traffic dynamic. Globally, operating results increasing by EUR 20 million. If we look at this per branch and Eiffage Construction, you can see return of activity of 5% first quarter, second quarter, mostly contracting plus 3.1% and real estate or property 11.7%. You can see in blue, the comparison basis is favorable looking at the activity for 2024 and 2025, and that was particularly true in real estate. In contracting, growth is carried by the ratcheting up of our Norway contract, which then is lessening then towards the end of the half of this year. So renovation, residential and tertiary and energy efficiency in buildings, some major operations are also increasing their pace. Operational margins are stable at 3.5% real estate contributing to EUR 11 million in the results in 2025 with a slight drop in margin at 4.4% because activity has grown and that's imputable to sales of block sales at 60% in the first half. So that's less profitable than the model, but more secure. And good news is that the erosion of the margin has been offset by increasing margins in contracting. So you can see we're renewing our order book by plus 6% over 1 year and 2% compared to December 2025. This year, I wanted to illustrate my talk here by the buildings in adapting to climate change, which is a very positive, a very buoyant market for us and quite topical. Here, we have in our end in Belgium. This is affordable housing, 156 housing units with a drain area and a spill-off area, and it's also contributing to local biodiversity, the Flora and Fauna and Birds nest. So the infrastructure branch has stabilized after 4 years of strong growth. In roadworks, in road in general, revenues are down by 4.2% with inertia related to municipal dropping in municipal contracts. In Spain, the road group has increased by 10% compared to traditional markets due to the project that was presented regarding the Formula 1 project. So in civil engineering in France, activity is stable. Major projects mentioned by Benoit are in full production. That's also the case for the HS2 project in the U.K. In Germany, we see a decrease -- an increase of 10% in the activity to -- which is offsetting the end of the construction of the A3 motorway, giving us a stable consolidated revenues and metal smolders is increasing at over EUR 500 million on the increase of the HSM integration as of the 1st of June 2025. through the first half of this year. Let me remind you that you know this, the structural margin is negative in the first half due to civil engineering and road, but that's the consolidated figure that gives us 0.3% that's stable over the semester, but not representative for the entire year. That's due to the performance at the end of the year of these business lines. So the order book is at plus 6%, particularly in the plus 18 months with this project with stability expected in the short term. So here, we have Eiffage [indiscernible], resizing spillway here in the [ Rusta ] reservoir to meet regulatory requirements and to guarantee safety the dam during any floods and the evacuation capacity moving from 10 cubic meters per second to 56 cubic meters per second. First step is to increase the walls to 45 meters. And second stage is to build a new evacuator at 155 meters. So Eiffage Energy Systems had solid growth at 4.8%, 2% organically with an acceleration -- quite substantial acceleration in second quarter at 4.1% organic growth. Stable activity in France compared to 2025 and a strong growth in Europe outside of France at plus 10.8%, including 6.2% organic growth. What stands out here is compared to the -- like in the past, organic growth is an essential driver to our European growth. So this half saw a lot of development in Germany, 15% and Netherlands, plus 15%, Spain, plus 10% overall growth then at 11% and including the acquisitions from summer of 2025. So organic -- organic growth there is at 4% in Spain. Operational margins continue to grow by 30 basis points at 5.2%. So visibility is very good with an order book at plus 7% in the beginning of the year, plus 9% over the year. We have a framework agreement here, and we have this market where we've been providing emergency support with NEDs. Here you can see the map. We had our folks mobilized 24/7 to repair, replace any cables and intervene wherever necessary, dealing with the heat waves. In the concessions here, you can see this slide. Main interest is to give you the details of the PPP concessions consolidated with overall integration indicating their end date to show you that beyond 2035, 2036, our assets outside of APRR. So then I'll just make two comments on the bottom part of the graph. In the motorway concessions other than APRR, we can see that the revenues are on the downturn in 3 of the 4. And so in the gray part of the graph there, that's -- you see the revenues in -- no 2025 consolidated by the equity method. If we focus on APRR area networks, there we see the light vehicle traffic is down by 3.4% overall limited 2.5%, though it's maintained due to the HGVs. So we can see that it's -- we've got an increase in tariffs and tolls at the beginning of the year, but not enough to offset. So A79, A79 is continuing to ramp up, with a lesser growth in the current context. So we have -- we've taken over four service areas directly with our brand fully generating revenues of EUR 10 million. The commercial margin is low in this type of business. It does dilute the margin, the EBITDA margin by 50 basis points. So this means that the EBITDA of this area would have a slight increase at 72.2%. That's due to the reactivity, the responsiveness of our APRR teams to contain their expenditures as soon as traffic started dropping. Sticking with -- dealing with climate change at the entry of the tunnel in [ Dulin ], 43 in [ Sava ], we had to carry out some maintenance and monitoring operations because with the heat and the weather and freezing thing, these networks need to be secured. So all of this, of course, is part of our business plan. Now outside the APRR network, you can see that the EBITDA margin for our main assets is already high and our motorway concessions are in the young ones were at 80%. So [ Avi ] here as well, where we manage the service areas at EUR 6 million with the EUR 28 million you can see up here. And on the right, you have just FYI, the amount here for constructions carried out by Eiffage and the concessions of PPP and greenfield currently under construction. In [ Sun Agri ], the specialist in concessions for energy production. You can see the operations here, and this is to deal with climate change. We call this dynamic agrovoltaism because we can change the orientation of these panels. So Getlink, we have the update of the increase in capital here. You can see the share part with using the equity method. So that's a profit share. So the profit, EUR 34 million for components here, we can have the results for the half of Getlink is EUR 18 million, as you can see on the right there gives us EUR 34 million in QS, an adjustment of the 2025 result gives us EUR 8.8 million minus the amortization of goodwill gives us 9.3%. So we also have EUR 129 million in dividends in June '26, much higher than 2025, the EUR 62 million that were taken into account in 2025. So now looking at our income statement after going over operations, we can see we're more or less stable, EUR 161 million. Increase in interest rates have been offset by the drop in the net debt. Other financial expenses include the capital gains of the disposal of [ Voltaire ]. Corporate tax is stable and the net profit group share comes out at EUR 342 million. So that's an increase of 12%. If we look at the changes in the net debt, we need to compare this to 2025. You can have that in the bottom of the page. EBITDA is on the upswing as the dividends coming in from the company's -- the associates using the equity method, you can see there's a greater -- change in working capital requirements due as compared to contracting and most in middle, we saw that the expenses, interest and tax have been also impacted with cash flow, but this brings us to free cash flow at EUR 420 million. The investments -- net investments are under control, EUR 495 million, EUR 47 million and including EUR 35 million in contracting. So following these investments, free cash flow negative at EUR 75 million, and we were negative last year in June 2025 at minus EUR 90 million. It's not representative of our annual cash flow that's generated in the second half due to the seasonality of our business lines. So then in blue here, you have the acquisitions of EUR 204 million, including the most recent capital injection to Getlink and the acquisitions mentioned by [ Benoit ] in Germany and France, subtracting the disposal costs of [ Voltaire ]. And then the dividends that were given out by APRR and those by Eiffage to the shareholders of EUR 468 million, movements on the share prices. So the debt, EUR 9.4 billion total in June, we have invested a lot, nearly EUR 1 billion over the past 12 months, reinforcing our participation in Getlink by some 9%. So the EUR 9.4 billion are to be broken out into -- there's a nonrecourse debt and about EUR 600 million and then EUR 500 million of treasury and cash flow in the holding in the contracting division gross cash EUR 2.4 billion, and this enables us to continue to be financially agile. Final slide here, this is our order book at a historic level of over EUR 31.5 billion. We can see it's on the upswing in all of the branches. The essential growth here is you can see in green. And that's an increase of 14%, a growth of 3% compared to the short term. So the group's visibility is very good, very positive. We benefit from our ability to be positioned in our operations that are multiyear and multi-business line. So that's it for me with the figures. I now suggest we move on to question and answers.

I'm from JPMorgan. I've got a couple of questions. I might go one by one. So maybe we could start looking at motorways. Clearly, traffic is down this year, especially in the first half. Margins are down as well. You talked about some dilution of them. You talked about the actions taken to offset the drop in traffic and the impact on your margin. What are those drivers? What are those levers? And what about the rest of the year? What will you do if traffic does continue to go down? And what will be the cost for motorways? And what have been the trends this summer, we saw the increase in petrol and gas prices. Is there something planned for the motorways? Maybe I'll stop there and ask my other questions later. Go ahead.

Thank you. We'll start with traffic as each and every year. I'll start by answering the first question about traffic. During the summer, which is not over yet, the trend on LVs is confirmed by what we noticed since March and the beginning of the conflict in the Middle East. As for LVs for HGVs, we're going having a sustained traffic more to the tune of 1%. And to answer your first question, what we implemented to take into account this decrease in traffic, we had a certain amount of action on the various parts, either operational, current operation or on HR, while keeping in mind that the security of our teams and also our customers remains the first top priority. So I had to make arbitration not to question the security of our teams and our customers. Precision, [ Elodie ], on the decreasing margins, you will see APRR area retreated EBITDA, slight progression and the margin decreased by the charge of amortization going with the end of concession date, which is getting closer. We don't stop on the cap ex cap. We keep the capital expenditure, but the margin of EBITDA transform is a slight progression with an effect which is more marked on the measures taken in the second half year.

If the traffic is picking up, should we expect an increase of the costs again? Well, everything is in the assumption you're making. If the traffic picks up, we can't say anything today. There are certain amount of measures we took, which are -- which will go on. A certain amount of things if traffic improves will be reported or delayed. It's in between, right? To add to it, maybe there is -- one of the elements is to -- through the summer, given the traffic, the short-term workers we are hiring, the amounts are much weaker than what we usually have in the summer. On the energy part, you reported to margin increasing by 30 basis points. Can you share with us what are the drivers? Is it an organic driver? Is it -- do we expect this kind of increase all over the year?

Ludovic will answer.

In France, as we have seen, we have an organic growth, which is less dynamic than previously. So to guarantee the level of margin, we work on the selectiveness of our business and also on the operations. This is something we discussed last year. We go on with that. It's a long-term system. We've seen in Europe, we have a growth which is excessively organic. And some total part of the margin comes from this European drive dynamic.

I would say, at the half year, to add to what Ludovic said, the 30 basis points, we have them as much in Europe as well as in France. I think it's very important. It proves the performance of the teams, when you have an organic growth that is decreasing, it's more complex. But the dynamics implemented for a certain amount of years go on producing their fruits and the selectiveness of the deals is key. So we are confident on this capacity to maintain this increase of margin.

So to go on with that about the data centers, can you give us an explanation where do we stand? And is it a subsector which is important for you? Or would something change for Eiffage? Can we expect different margin on this kind of projects?

Data centers, you have several worlds in data centers. You have the world of the current data center we've been doing for years under 20 megawatts, either we're working in a big chunk or minor chunks and which we do maintenance on this activity, we're in regular growth for the past years. Then you have the hyperscales, everybody talking about it. We're talking about billions of works. There we have to be cautious relatively. Those are projects which are excessively long. We don't have one project to do with one order. It's several orders that are logged in. It's over the years. It's projects which are the implementation commercial closing, it's rather long. You have to make sure that you have the tenant before starting the works because it's the tenant that given the nature of the tenant, you have the definition of the design because each user has its own design. It's a long process. You have to make announcement that you have the energy, you have to -- you are ready and you have to have the developers to make sure that they have the right tenant to use the data center. We today, our ambition is to secure a first hyperscale. We're still in the first building in the finalization. We've finished the building. The -- we almost finished -- there were 24 rooms of 1,000 square meters at 74-megawatt IT, we finished the rooms of the first floor, and we are negotiating to finish the rooms of the second floor given the needs of the user. It's a project we started a few years ago. It's still in the phase of finalization. It's going to be EUR 800 million projects, and we're working with them on the building next to ours. We ramp up in a reasonable way and our capacity to do data center. We did it in France. As you have seen, we made an acquisition in Germany, enabling us to position ourselves on data centers. We have also this strength in Spain. It works. Everybody is moving on. And the hyperscale, our ambition is to structure ourselves to be able to do it in France, two in parallel in the global Eiffage offer. We are also as an EPC, i.e., we are doing the energy, but also the building. And what I wish is to position ourselves on projects that will provide a major part of the equipment because today, you have a certain amount of hyperscale. If you're working for Google, for instance, they come with the prefab. They buy everything themselves, and you just do the installation. So it mobilizes a tremendous amount of stuff for a very low added value. So in the universe of the hyperscale, you have different types of hyperscale, diverse types of data centers. What we want to do a way with all the provision of the equipment and the building to have a better added value. So we have a reasonable process. We're working a lot on these things. It's excessively long. We might have some good news to announce at the end of next year. And it was good news, the major projects. Now, look, the impact on the profit, I can't give you the level of margin, but it must be a contribution, right? Non-dilutive. LOD, what's important beyond the general explanation of Ludovic is that, yes, it's relative, but it's very risky in the models, contractual models, current ones on the European market, not on the American markets. We're not in the construction management. We're on risk transfer. Our subcontractor chains cannot have balance sheet. So it's a risk taken totally. Hence, the fact that we have an appetite, but reasoned appetite. We have the first team. It went well. If not, we wouldn't go on that way. We put more people on it with hybrid teams to be able tomorrow to face at least two construction in France and maybe in the future also in Germany. But at the end of the day, the risks are very important. So obviously, we accept to take those risks when we're convinced that we have the human capacities to do it. And we have the human capacity to do when we succeed. Yes, it's relutive clearly, but we have to look on both sides.

Just a last one for the road. Where do we stand on the progress of the project? Will we have a speed up and acceleration on the order books and on the activity?

The German plant, we talk a lot about it. We start to see the first effects, not only in the figures, even as been said by Christian, we were able to offset the end of the A3 by current activity. It's partly linked with the first effects of this plan of jumpstart of Germany, some contractors are working on that. We see there is a trend, there's a drive. There is a strong drive on [ Deutsche Bahn ], a very sustained activity. There's a lot of pressure on the regularity of the trains in Germany. It's a classical topic in Germany. They were on works I mean, things that were done a few years ago. They developed new models, more collaborative models, first element. And second element also on projects of corridor, the network is much more meshed than in France. They are able to reroute trains totally and give complete areas of 30 kilometers of which you have to do all the works. It's a massive impact because you have to mobilize a lot of resources on a very short time to do a lot of work. They are still looking on how to be able to speed up the implementation of their investments. We discussed it already. The traditional German model, the design is done by the government or the lender or state-owned companies and all this process that requires engineering hasn't doubled in Germany. So the capacity to speed up is limited by that. It's less the case on [ Deutsche Bahn ] because it's been a long time to have those projects on shelf. They have budget problems and the restart of the economy in Germany. They have less constraints and they speed up the implementation of the project they had prepared for some years. And what Guillaume was saying, the only way to speed up is to open up cooperative modes where the capacity of design has to be found with the different players, and this is very positive. And it's a very good thing. Let's say it. If it's longer to be implemented, it's -- those who are already on location in Germany are supporting the support. If they were a fantastic gem, you would have seen the influx of foreign operators. So we are the operators in Germany, we're the first beneficiary of the plan. Even if many people hope it would be faster, but it's already active and it's going to go on since the general consensus on its necessity and the obsolescence of many road and train infrastructure make it that there is a consensus for that. It's important for it to go on. It's a very good news. that finally goes not as fast, but on the longer span of time. It's easier and gives us the capacity to better organize ourselves to capture this growth.

Well, since no one else is I'll come back. Well, in extent to what was said, if you look at the German history, there we have some -- we've seen some competitors get it all wrong by subcontracting the design to architect offices. I'm thinking about the APRA construction site in Hamburg, some EUR 600 million losses. So today, the risk for Eiffage and our competitors, we were able to -- we have to be able to implement our engineering capacities whereas in the past, it was not being done. So that's my question. So are you capable?

Well, two things are different. There's the building construction market where we're not that active. We just have subsidiary there called [ Alba ] that's not that active. And we have some civil engineering. These are two completely different worlds. And there have been a certain number of players, including Eiffage, where we've already had projects based on that model, and these are PPPs where we were the designers. We were controlling the design with other German designers who helped us out in capacity-wise. But in this area, we have not encountered any difficulty in any place where we saw major difficulties in the past, but we weren't there. That was a very large building projects in Germany with some GCE, for instance, where there were difficulties in the market itself, but we're not involved there. And the stimulus package or the recovery in Germany is just on infrastructure that's rail and roadways. So the stimulus package or the recovery package, if you look at the budget document, you see that it's part of it is a transfer of budgets that are general budgets to the [ Sagen ] zones. Can we say that maybe this year or next year, we'll see a net balance there, a positive balance there in terms of activity? Well, that's what we're seeing statistically. That's what we want to do. There's a lot of discussion and debate in Germany right now because politicians want to show that they are moving forward very fast on the stimulus package on recovery package, but it's not going as fast as the historic budgets though. So -- the debate then is on transfers in Germany. So fundamentally, we have increasing amounts of activity, having 10% growth, normative growth and continued growth, sustained growth with a certain number of operations. Well, we have the visibility there. We have the capacity. We can't -- we couldn't go a whole lot faster because you have to hire, you have to draw on the talent, and that's another point that I've already shared with you. Certain number of crises in other sectors, other industries made our industry increasingly attractive. And I think that's one of the best news coming out of the German stimulus package. We've never had so many people interested. Now we are able to attract interim term, alternating workers, young people coming back into our sector who -- in the past, you couldn't go out and recruit workers from a German automotive factory. So we're attractive now, and you hear about this on a daily basis. This is probably the most positive point for me in the medium to long term in our ability to continue to move forward and contribute to the German stimulus package. Another point that's very important is also the necessity to support the energy transition in Germany. And you see substantial growth for our specialized affiliates there in high-voltage networks. So we see growth that's quite substantial there, entry barriers, we see a lot of growth there. So these areas are very dynamic. There's a lot of momentum here, and it's not just air, there's underground. When you say underground, this is civil engineering teams, and these are teams from the energy systems as well. So there's a real calling there. So behind infrastructure, you have to think that part of the growth is there coming from energy systems and the electrical system, the electrical infrastructure of the company -- sorry, of the country.

Eric, I have a couple of questions. I'm going to throw them all out there on the Mara tunnel in Germany. What is it that compelled you to get interested in that asset there? Could you give us your viewpoint on the residential market in 2027 in France for Eiffage Real Estate? I'm assuming you're not very optimistic there. I'd just like to know what your feelings are. Also, as regards to Germany, were you directly, indirectly impacted by the drought that impacted the Rhine River? Is there anything impacting your business there? And the slowing of traffic on the motorways, what do you think is the sensitivity of the light vehicles regarding price of petrol gas here? If gas does stay high, if fuel does stay high, will people just get used to the new paradigm and drive the cars as much as they did in the past? Final question here is really a detail here on Saner, you came in, in 2022. I was just wondering if Saner was profitable at this stage. And if so, have you started giving out dividends?

The first question was on the [ Warano ] tunnel. We had expressed that in the press release when we first started -- first entered into negotiations. If you read the press release there, we -- of course, we are very familiar with Atlas Arteria, our motorways, APR an area. And so just coming to completion of construction. So with the -- having the concession -- having the [ Warano ] concession, we thought we would have a common structure to manage these two assets. because we wanted to not consolidate A3. So during the discussions, though, Atlas Arteria suggested we could take -- we could acquire [ WNO ] 100%. And so as discussions move forward and as you saw in the press release, we did not reach an agreement on the financial conditions for the 100% purchase of [ WNO ]. So it's a concession that enables us to go faster in where we -- in the area where we want to build the future constant current substation. So we had a cost -- we had -- just as we managed to do that just as the concession came in for the direct current substation there. So we know historically that goes well. We just had to -- there was no technical issue. We just had to reach an agreement on the price, and we did not. So that's where the idea came from.

Thank you for the question. Well, as you know, in residential real estate, the context is deteriorated. And there's a climate of wait and see in terms of confidence and trust and just a general context. So it's hard to anticipate between now and end of 2026 and even into 2027, hard to imagine a substantial improvement in the situation as regards to budget and political situation and general context wise. So however, there are housing needs, and they have never been as high as they are now. And the desire to become a homeowner is still there. So our real estate teams are working really hard in finding the right fit of our commercial offer, impacting -- working on these two levers, two drivers where we think our model has a real impact. On one hand, developing controlled cost acquisitions for working with our developers. We have potential activity of 11,000 housing units we're working on right now. And the second driver we have is the contribution of our Industrial Solutions to our operations to be able to onboard -- produce affordable housing by massifying the cost and then sustainable housing, including all of the usages and reversibility. So to have good visibility, we have to be able to be ready for the rebound effect when the confidence does come back. As regards Germany, the topics related to the drought in the Rhine River, we are not directly impacted because when we work with these industrialist, we're working in technical maintenance and that, but not delivery. There's no real impact on our business there. There was road traffic, sensitivity there, sensibility in road traffic. Well, we'd like to have an idea of what the formula is, but we're seeing that the length of the duration of the crisis that we're experiencing and the really high prices over the long term of, say, diesel costs, which had a major impact on light vehicle. Second effect is that we saw a deferred impact for certain ways of working that are different such as more remote working and less travel that impacts traffic. However, we are optimistic about the sensitivity of traffic to price -- fuel prices, we're seeing increased traffic of electrical vehicles. And so we're seeing also more corporate fleets moving to electric cars. So that should have an impact on the traffic as regards to thermal engines. Christian, regarding Saner.

Production of 140-megawatt hours solar hours. So we are expecting breakeven over 2 years, keeping in mind that a good part of our loss is development costs where we have private equity actors in the same area, those costs go into losses. But in terms of -- the non-capitalization of the development costs, the policy, we're just being prudent there for right now, being cautious for right now. Elodie, do you have another question?

Well, maybe one last one for me from a free cash flow, which is down a bit, was last year as well, but you managed to turn that back around at the end of the year. Can we expect the same trend this year?