By Nina Kienle

Shares of Bouygues saw a significant increase after the company announced better-than-expected profits and proposed a surprise bump in dividend payouts.

Strong Performance

At 0909 GMT on Tuesday, shares were up 6% at EUR36.01, marking a recovery from earlier losses in 2024 and pushing the year-to-date gain to 5.5%.

The French conglomerate reported a full-year net profit of 1.04 billion euros ($1.13 billion), up from EUR973 million the previous year. Current operating profit from activities also saw a rise to EUR2.41 billion from EUR2.02 billion, with sales hitting EUR56.02 billion following the Equans acquisition.

Analyst Expectations

Analysts had predicted a net profit of EUR1.03 billion, a current operating profit from activities of EUR2.38 billion, and sales of EUR55.61 billion for the full year. This beat consensus estimates compiled by Visible Alpha.

Dividend Increase

Bouygues proposed an increase in its dividend payment to EUR1.90 per share for 2023, up from EUR1.80 per share the previous year. This was unexpected, as analysts had anticipated a flat dividend of EUR1.80 per share.

Analyst Insights

Analysts at Stifel noted that the strong results and growth prospects at Equans could further bolster Bouygues's share price. However, they cautioned that low investor confidence in the group's strategy and structure might still be a factor to consider moving forward.

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