VINCI’s overall performance was of a very high quality in 2023. Revenue and earnings grew strongly and reached new all time highs. Free cash flow was exceptional and significantly exceeded expectations.
Almost all of the Group’s businesses, both in France and abroad, saw very positive momentum throughout the year. The only exception was the property development business, which is dealing with a severe conjunctural downturn in its sector.
In Concessions, traffic levels at VINCI Autoroutes continued to rise, with light vehicles the main growth driver despite fuel prices remaining high. At VINCI Airports, passenger numbers continued to recover and moved back above pre-pandemic levels overall at the end of the year. While some airports have not yet returned to their 2019 levels, others have set new records. Combined with good cost control, these growth trajectories allowed the Concessions business to increase its operating income substantially, offsetting the impact of higher interest rates.
The Energy business was again buoyed by powerful underlying trends – the energy transition and the digital revolution – and saw strong revenue growth. It accounted for almost 40% of the Group’s total revenue and both VINCI Energies and Cobra IS increased their margins. The Energy business also generated record free cash flow despite its investments in green power generation. At the end of 2023, the total capacity of renewable energy projects in operation or under construction was over 2 GW, in line with targets.
VINCI Construction also saw very strong business levels, driven by works on major mobility infrastructure projects, structures intended to provide greater climate resilience, and energy renovation. The business line continued to improve its operating margin and its free cash flow was outstanding.
Order intake for the Energy and Construction businesses remained high, without departing from the selective approach to new business, which has long been in place within the Group. The order book renewal rate was therefore quite satisfactory, offering the Group forward visibility and peace of mind.
In terms of new developments, the main deals completed in 2023 concerned VINCI Energies, which made acquisitions in Europe and North America, VINCI Highways, which added a motorway concession in Brazil to its portfolio, and VINCI Airports, whose network now includes Cabo Verde’s seven airports. In addition, VINCI Airports was rewarded for its good management of six airports in the Dominican Republic over the last eight years with a 30 year extension of its concession, until 2060.
With a solid presence in highly buoyant markets, particularly in the energy sector – in which it operates across the whole value chain through its three major businesses – the Group is moving ahead with confidence and enthusiasm. The environmental transition, energy efficiency, the digital revolution and sustainable mobility are major challenges generating considerable demand, which represent opportunities for the Group’s companies.
In this context, the Group can rely on its efficient, decentralised organisation to continue its development while keeping its focus on all round performance, which encompasses both financial and non financial elements.
Xavier Huillard
Chairman and Chief Executive Officer
