€86.790 -1.11 %
Eurovia serves local authorities by developing mobility solutions that cover design, construction and maintenance of transport infrastructure and urban development projects. It continues to nurture its roots in its long-standing domestic market but now generates 43% of its revenue outside France, primarily in Europe and the Americas.
Transport infrastructure and urban development. Eurovia is a global leader in transport infrastructure and urban development. It builds and refurbishes roads, motorways, railways, urban transport lines and hard surfaces for airports and industrial and commercial facilities. It also delivers related works, including demolition, deconstruction, drainage, earthworks, utility networks and urban amenity projects.
Quarries. Eurovia is a European market leader in aggregates. It extracts, processes and markets both natural and recycled materials, and operates a network of more than 350 quarries producing 82 million tonnes of aggregates per year (of which Eurovia’s share is 57 million) and 150 recovery and recycling facilities. Eurovia’s share of reserves (*) amounts to 3.1 billion tonnes, or more than 50 years of output.
Industrial production. Eurovia operates 330 coating plants supplying 20 million tonnes of asphalt mix annually as well as 50 asphalt binder plants. In addition, Eurovia produces road signage and road marking products (signs, gantries and paint).
Services. Eurovia manages and maintains 70,000 km of roads and railway networks under long-term contracts. It also services road signs, markings and safety systems, and maintains related facilities such as road equipment, green spaces and vegetation.
Eurovia invests heavily in research and development to improve the technical features of its products and processes, develop innovative functionalities and protect the environment, with a focus on recycling materials and reducing CO2 emissions.
(*) Reserves controlled through ownership or royalty agreement.
Competitive position of Eurovia
Eurovia is one of the leaders in the road and rail works market with Colas and Eiffage Infrastructures. The market is otherwise shared by a large number of local and regional contractors.
Eurovia is market leader in aggregates, where its competitors include roadworks companies and cement groups such as LafargeHolcim, GSM (HeidelbergCement Group) and Cemex, along with several hundred local producers.
Eurovia GmbH is one of the sector’s main players with Strabag, in a market made up mainly of numerous regional players.
Eurovia UK, through its subsidiary Ringway, is a major player in long-term road maintenance contracts. Its main competitors are Amey (Ferrovial group), Kier and Balfour Beatty. Eurovia UK also operates in conventional roadworks in competition with Balfour Beatty, Carillion and Tarmac (CRH Group), Aggregate Industries (LafargeHolcim), Hanson (Heidelberg) and Conway.
Eurovia CS is among the leaders in road and rail works. Its main competitors are Skanska, Metrostav and Strabag.
In Canada, Eurovia is one of the major players in road infrastructure works in Quebec, Alberta and British Columbia through subsidiaries Eurovia Québec Construction, Carmacks and BA Blacktop. Eurovia strengthened its position in rail works in the region by acquiring Rail Cantech in February 2016. Its main competitors are subsidiaries of Colas and LafargeHolcim, as well as local companies.
In the United States, through subsidiaries Hubbard Construction and Blythe Construction, Eurovia is a market leader in the south-east alongside Archer Western Contractors (a Walsh Group subsidiary) and Lane Construction (Salini Impregilo Group) for construction works and Preferred Materials (CRH Group) for the manufacture and application of asphalt concrete.
Source: company literature
Despite the difficult business environment, Eurovia built on its geographic diversity and strong managerial system to keep revenue contraction within bounds and boost results in 2016.
Eurovia’s order book at 31 December 2016 increased 4% from the previous year, suggesting a return to revenue growth in 2017.
In France, order intake in 2016 heralds a recovery, reflecting the fact that local authorities will soon have to invest in necessary road network maintenance and upgrade works. In the railway sector, 2016 was a transition year following completion of the South Europe Atlantic high-speed rail line project. ETF will now step up its redeployment into renovation of existing lines under multi-year contracts awarded by SNCF Réseau that are entering into force.
In the other European countries, activity is expected to remain buoyant in Eurovia’s two main markets: Germany, where major infrastructure renovation projects are now being launched; and the United Kingdom, where Eurovia can build on its local roots in both contracting and services. In Central Europe, infrastructure upgrade requirements are expected to generate further investments financed by European structural funds.
In North and South America, activity is expected to continue to grow in the United States, driven by major contracts awarded to the local subsidiaries and in the longer term by the massive investment announced by the new administration. In Canada, the effective launch of projects already booked and public road and rail expansion programmes should stimulate activity.
In this context, Eurovia will proactively pursue its international expansion strategy in rail works and a targeted expansion strategy in North and South America. In addition to acquisitions, there is scope for expansion along the value chain – upstream in infrastructure design and downstream in services – and for strengthening Eurovia’s integration capabilities under PPP projects developed in synergy with VINCI Highways, particularly in Germany and North America.
Meanwhile, Eurovia will step up innovation in its various business lines, from production of materials and works activities to maintenance and services. Innovations will boost the environmental value added of Eurovia’s products and processes and foster the emergence of new functionalities driven by expanded use of digital technologies.
€243m Operating profit from ordinary activities
€160m Net profit attributable
to equity holders of the parent