Bureau Veritas: 1H26 - improving growth trends

Research evidence excerpt

Bureau Veritas: 1H26 - improving growth trends

NSTEIN FLASHMAIL

29 July 2026

Will Kirkness

+44 20 7676 8355

European Business Services will.kirkness@bernsteinsg.com

Bureau Veritas SA Filippo Giardini

+44 20 7762 4723

Rating filippo.giardini@bernsteinsg.com

Outperform

Price Target

BVI.FP 34.00 EUR

Conclusion: 1H26 EBITA was 3% ahead of consensus and organic growth was solid at 5.5% in 2Q. Given the slightly improved

outlook, consensus EPS may may nudge up low single digits. The EUR32m provision reflects an initial attempt to draw a line under the

completed review of the Government Services contracts. Call at 3pm CET

Upgrade to the Outlook. The outlook statement now points to “mid-to-high (prev. mid) single-digit organic revenue growth” but

maintains an “improvement” in adj operating margin at constant FX. With FY26 consensus looking for organic growth of 4.9% and

margin +10bps to 16.4%, consensus EPS may likely see low single digit upgrades.

Detail: 1) 1H26 EPS/EBITA of €0.68/€506.5m was 1%/3% above consensus (€0.67/€491m, BERNe €/€492m). 2) 2Q group

organic growth of 5.5% was 90bps ahead of consensus (cons 4.6%, BERNe 4.6%, 1Q: 4.5%) with ongoing strength across Building

& Infrastructure and Consumer Products. 3) EBITA margins were +10bps YOY to 15.5% (cons: 15.2%, BERNe: 15.2%), +29bps on an

organic basis.

Following the announcement of irregularities within the MENA Government Services sub-segment in April 2026, the company

confirmed its decision to exit the entire sub-segment, which generated €185m of revenue in 2025. The exit commenced in 2Q26 and

is expected to be completed progressively throughout 2026. As of 1H26, the company had recognized a €32m provision related to

the decision.

2Q26 organic revenue growth and 1H26 margins by division: