Stock Markets May 13, 2026 02:10 AM

Eiffage flags tepid Q1 start to 2026 as weather and project timing weigh on divisions

Sales miss consensus modestly while construction lifts like-for-like growth and order backlog inches higher

By Sofia Navarro

Eiffage SA reported a sluggish opening to 2026 in the first quarter, with weather disruptions denting its Energy Systems activity in France and project phasing outside Europe weighing on Infrastructure. Overall sales were 1.3% below consensus. Construction delivered a 5% like-for-like gain supported by a ramp-up of major contracts, and the group order book expanded both sequentially and year-over-year. Management reaffirmed its operational guidance for 2026 but signalled the outlook could change should the Middle East crisis exert a larger influence on European markets.

Eiffage flags tepid Q1 start to 2026 as weather and project timing weigh on divisions

Key Points

  • Group sales for Q1 2026 were 1.3% below consensus estimates.
  • Construction posted 5% like-for-like growth driven by a ramp-up of major projects.
  • Order book rose 4.0% quarter-on-quarter and 4.7% year-on-year; Energy Systems order book grew 7% q/q, bringing backlog to about 17.5 months of activity.

Eiffage SA said the first quarter of 2026 reflected a slow start to the year for the French construction and concessions group, with distinct impacts across its business lines.

Management reported that sales for the quarter came in 1.3% below consensus estimates. The Energy Systems division experienced setbacks in France, attributed in part to adverse weather conditions. Meanwhile, the Infrastructure arm was affected by the timing and phasing of projects located outside Europe, which reduced activity in the period.

By contrast, the Construction division recorded strength, delivering a 5% like-for-like increase. That improvement was linked to the ramp-up of several major projects, which provided a measurable contribution to group revenues in the quarter.

Order intake remained resilient. The group order book expanded 4.0% compared with the prior quarter and was up 4.7% year-on-year, driven by demand in the Energies business. In particular, the Energy Systems order book grew 7% on a quarter-on-quarter basis.

At the reported pace, Eiffage’s backlog now equates to approximately 17.5 months of contracting activity, compared with 16.8 months at the end of 2025. That metric signals a modest sequential extension of visible work for the group.

Despite the mixed start, the company confirmed its operational guidance for 2026. Management cautioned, however, that the outlook could be revised if the crisis in the Middle East produces a more pronounced impact on European countries.

On the broker front, Jefferies retained a buy recommendation on Eiffage and set a price target of 160.00, which the firm said represents an 18% upside from the current share price of 135.65. Jefferies also adjusted its 2026 earnings per share forecast down slightly to 11.70 from 11.80, a reduction of under 1%.

Taken together, the quarterly update describes a company balancing weather- and timing-related disruptions in two divisions against continued momentum in construction and a modestly expanding order book, while preserving its guidance subject to geopolitical developments affecting Europe.

Risks

  • The company warned the 2026 outlook could change if the crisis in the Middle East has a larger impact on European countries - affecting Infrastructure and Energy exposures.
  • Weather-related disruptions reduced activity in Energy Systems in France, creating near-term operational risk for that division.
  • Project phasing outside Europe dampened Infrastructure revenue in the quarter, indicating timing risk for international project delivery and recognition.

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