Bureau Veritas' LEAP | 28 Strategy Delivers Outstanding Results in 2024; Confident 2025 Outlook

NEUILLY-SUR-SEINE, France -- (BUSINESS WIRE) --

Bureau Veritas (BOURSE:BVI):

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2024 key figures1

› Revenue of EUR 6,240.9 million in the full year 2024, up 6.4% year-on-year and up 10.2% organically (including 9.6% in the fourth quarter),
› Adjusted operating profit of EUR 996.2 million, up 7.1% versus EUR 930.2 million in 2023, representing an adjusted operating margin of 16.0%, up 11 basis points year-on-year and up 38 basis points at constant currency,
› Operating profit of EUR 933.4 million, up 13.2% versus EUR 824.4 million in 2023,
› Adjusted net profit of EUR 620.7 million, up 8.0% versus EUR 574.7 million in 2023,
› Attributable net profit of EUR 569.4 million, up 13.0% versus EUR 503.7 million in 2023,
› Adjusted Earnings Per Share (EPS) of EUR 1.38, up 8.7% versus EUR 1.27 in 2023,
› Record Free Cash Flow of EUR 843.3 million, up 27.9% year-on-year and cash conversion of 114%2,
› Adjusted net debt/EBITDA ratio of 1.06x as of December 31, 2024, versus 0.92x last year,
› Proposed dividend of EUR 0.90 per share3, up 8.4% year-on-year, payable in cash.

2024 highlights

› 2024 financial targets of organic growth, margin and cash flow exceeded,
› Tangible achievements and successes delivered in the first year of the new LEAP | 28 strategy,
› Strong growth recorded in the Americas, the Middle East, Africa, Asia-Pacific and Europe,
› Sustained growth momentum in sustainability services across the full portfolio,
› In line with the LEAP I 28 focused portfolio strategy and through active portfolio management, in 2024 the company completed: i) the acquisition of 10 bolt-on companies for a total annualized revenue of c. EUR 180 million; ii) the divestment of its Food testing business and of a technical supervision business on construction projects in China (c. EUR 165 million in annualized combined revenue),
› Double-digit shareholder returns based on EPS growth of c. 9%, a dividend yield of c. 3% and enhanced by a EUR 200 million share buyback program announced in March 2024,
› First A3 long-term credit rating by Moody’s,
› EUR 1 billion bond issuances to refinance four US Private Placements in advance with a nominal amount of USD 755 million as well as the bond debt of EUR 500 million maturing in January 2025,
› Good progress towards achieving the 2028 CSR ambitions with multiple recognitions by several non-financial rating agencies,
› Inclusion of Bureau Veritas in the CAC 40 Paris stock index in December 2024.

2025 outlook

Building on a strong 2024 momentum, a robust opportunities pipeline, a solid backlog, and strong underlying market growth, and in line with the LEAP | 28 financial ambitions, Bureau Veritas expects to deliver for the full year 2025:

› Mid-to-high single-digit organic revenue growth,
› Improvement in adjusted operating margin at constant exchange rates,
› Strong cash flow, with a cash conversion2 above 90%.

Hinda Gharbi, Chief Executive Officer, commented:

“2024 was an excellent year with the launch of our LEAP | 28 strategy in Q1-2024 and the delivery of record results on most fronts. I take this opportunity to thank all our colleagues around the world for their contributions and for their commitment.

This transformative strategic plan is built around three pillars: a focused portfolio, a performance-led execution, and an evolved people model. In its first year, we delivered tangible results in line with our commitment to make a step change in growth and returns. We recorded an organic growth of 10.2%, solid margin improvements of 38 basis points and adjusted EPS growth of 17.0% at constant currency. We also successfully completed our EUR 200 million share buyback initiative. Additionally, we significantly accelerated our M&A program with ten acquisitions and two important divestments.

Looking ahead, our focus remains on executing our growth and margin accretion plans and further accelerating our M&A program. Building on this strong momentum, we start 2025 with confidence that Bureau Veritas is well positioned for continued progress and for superior value creation.”

2024 KEY FIGURES

On February 24, 2025, the Board of Directors of Bureau Veritas approved the financial statements for the full year 2024. The main consolidated financial items are:

2024 HIGHLIGHTS

› 2024 financial targets exceeded on all metrics

› Double-digit organic revenue growth in the full year

Group revenue in 2024 increased by 10.2% organically compared to 2023, including 9.6% in the fourth quarter, benefiting from robust market underlying trends across businesses and geographies.

› Improvement in adjusted operating margin at constant exchange rates

The Group delivered an adjusted operating margin of 16.0%, up 38 basis points at constant currency and up 11 basis points on a reported basis compared to 2023.

› Strong cash flow, with a cash conversion4 above 90%

The Group achieved a strong cash flow with a cash conversion of 114% in 2024.

› Achievements delivered in the first year of the new LEAP | 28 strategy

In March 2024, Bureau Veritas launched its new strategy LEAP I 28 to deliver a step change in growth and performance, with sustainability at its core and built around three pillars: a focused portfolio, a performance-led execution and an evolved people model. In 2024, the Group achieved the following :

› Focused portfolio

In the full year 2024, the Group entered into agreements for:

› The acquisition of ten companies, representing annualized cumulated revenue of c. EUR 180 million,
› The divestment of two companies, representing annualized cumulated revenue of c. EUR 165 million.

In line with the LEAP | 28 strategy of active portfolio management, Bureau Veritas has activated an M&A program to:

› Expand leadership:

• The Group aims to expand leadership for businesses in existing strongholds with established leadership positions, through a combination of rapid organic scaling and inorganic expansion.
• The execution started with a focus on Buildings & Infrastructure (Capex & Opex). In the fourth quarter of 2024, the Group signed agreements for the acquisition of two companies (IDP Group in Spain and APP Group in Australia), strengthening its leadership in the B&I division. The acquired companies generated a combined revenue of c. EUR 117 million in 2023.
• Additionally, in January 2025 Bureau Veritas announced that an agreement was signed to acquire Contec AQS, an Italy-based company that provides services in construction, infrastructure and Health, Safety & Environment (HSE) domains for public authorities, infrastructure operators, and private manufacturing companies. The company employs c. 190 highly skilled experts and generated revenue of c. EUR 30 million in 2024.

› Create market new strongholds:

• The Group aims to accelerate growth in selected markets to create new long-term strongholds, investing early in fast-growing strategic sectors, where the Group has a clear path to market leadership.
• In Renewables: the Group signed agreements for the acquisition of two players, (for combined annualized revenue amounting to c. EUR 11 million), expanding capabilities in the energy and renewables sector.
• In Sustainability: the Group acquired Aligned Incentives (US-based and EUR 3 million in annualized revenue) focusing on sustainability transition services by augmenting the product circularity services.
• In Cybersecurity: the Group completed the acquisition of Security Innovation, (US-based and EUR 20 million in annualized revenue) specialized in software security services.
• In Consumer Technology Testing: the Group acquired three companies in Asia (combined annualized revenue of c. EUR 20 million) to expand its position in testing and certification services for the Electrical and Electronics segment.

› Optimize value & Impact:

• The Group aims to optimize value and impact from the remainder of the portfolio by managing their performance in a granular and consistent way. Businesses that do not meet stringent financial performance hurdles will be candidates for performance improvement or portfolio high grading.
• On the M&A front, the Group has an opportunistic approach for these businesses. Specifically, in Consumer Product Services: the Group strengthened its positioning in luxury through the LBS Group acquisition in Italy (annualized revenue of c. EUR 9 million). Details of M&A in appendix 7.
• As it actively manages its portfolio the Group:
  • Divested its technical supervision business on construction projects in China (EUR c.30 million in annualized revenue);
  • Signed an agreement in the fourth quarter of 2024 to sell its Food testing business (EUR 133 million of revenue in 2023) to Mérieux NutriSciences for an Enterprise Value of EUR 360 million and net proceeds from disposals of c. EUR 290 million. The divestment of the Canada and US businesses was completed during 2024; the divestment of the Japan, South East Asia and Africa businesses was completed in January 2025. The remaining part (mainly Australia and Latin America) is being executed and is expected to close by the end of the first semester of 2025.

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