Off the Call + Investor Feedback

Research evidence excerpt

Off the Call + Investor Feedback

IdeaMend markets or an uncompetitive offering. Emerging-market growth remains on

track (albeit with scope to improve), while the underperformance has been

concentrated in mature markets and traditional QHSE and voluntary schemes.

Comps were also tough in 2Q. Bureau Veritas is increasing sales activity and pushing

newer services such as decarbonisation, lifecycle assessment and supply-chain

resilience, and expects to see improvement in 2H. 1H margins in Certification were

affected by slower revenue growth, several acquisitions taking longer than expected

to scale and a small number of localised operational issues, all of which are

considered addressable.

Organic growth outlook. The upgrade reflects the underlying performance of the

retained portfolio (expected to deliver M to HSD growth supported by 2Q

momentum, backlog, pipeline and execution capacity), although removing lower-

growth activities also improves the reported growth profile. Guidance implies 2H

growth will be better than 1H, although management is not guiding by quarter.

Within Industry, capex activity remained resilient across oil & gas and power &

utilities due to the long-term nature of contracts, while weakness was concentrated

in opex activity in the Middle East, Africa and Latam. Easier comps, backlog and

execution capacity support the expected 2H recovery, which does not assume a

major rebound from an easing of the Middle East conflict.

Exit from Government Services. Most multi-year contracts contain clauses

allowing Bureau Veritas to exit. The company is working with customers to ensure

continuity through alternative providers or insourcing. Most contracts should be

exited by year-end 2026, although one or two may extend into early 2027, with