SPIE: Solid 1H26 results with 2Q recovery in organic growth and continued margin progress; outlook unchanged

Research evidence excerpt

SPIE: Solid 1H26 results with 2Q recovery in organic growth and continued margin progress; outlook unchanged

Jane L Sparrow AC Europe Equity Research

(44-20) 3493-7101 30 July 2026 J P M O R G A N

jane.sparrow@jpmorgan.com

Investment Thesis, Valuation and Risks

SPIE (Overweight; Price Target: €56.00)

Investment Thesis

SPIE is a leading independent European provider of multi-technical services in the fields

of energy and communications, playing a key role in the energy transition and digital

transformation by offering a wide range of services. With c.50% of group revenues exposed

to structural growth tailwinds (including energy efficiency and energy transition) and SPIE

having made a number of acquisitions in key growth markets such as the T&D and German

ICT markets, we view SPIE as well positioned to benefit from these growing end-market

investments. With SPIE having a better profile now with: (a) a better organic growth of

LSD-MSD%, supported by a diversified range of structural growth trends (vs. negative

organic previously); (b) structurally higher margins as the revenue mix and market

landscape become more favourable; (c) an improved balance sheet at lower leverage; and

(d) a greater flexibility in capital allocation with further M&A potential as the market

remains fragmented and the private assets are attractively valued, we believe there is further

room for a re-rating.

Valuation

We value SPIE using a DCF model with 9% WACC and a terminal growth rate of 2%.

Source: J.P. Morgan estimates

Risks to Rating and Price Target

Downside risks include: a macroeconomic slowdown in key markets including France and

Germany; slower-than-expected investment deployment into energy efficiency, energy