Company Reports

Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions, including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is noncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat due to switching costs, as the business features razor-and-blade dynamics that drive highly recurring revenue.

Veolia released first-half results in line with the company-compiled consensus. Revenue grew by 0.8% organically, EBITDA grew by 5.1%, in line with the first quarter, and current net income increased by 10.4%. The group raised its 2026 net income growth guidance by 1%.

Veolia released first-quarter results in line with the company-compiled consensus. Revenue grew by 1% organically, EBITDA grew by 5.1%, and current EBIT by 7.2%. The group confirmed its 2026 guidance.

Veolia launched Data Center Resource 360, a new integrated global offering targeting the fast-growing data center segment. It targets EUR 1 billion of revenue from data centers and chip manufacturing by 2030.

Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions, including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is noncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat due to switching costs, as the business features razor-and-blade dynamics that drive highly recurring revenue.

Veolia's 2025 EBITDA grew 6.3% organically to EUR 7.04 billion, and current net income grew 7.4% to EUR 1.64 billion, in line with our estimate and company-compiled consensus. Its guidance is for 2026 EBITDA and net income growth at constant foreign exchange of 5%-6% and at least 8%, respectively.

Low inflation and the disposals needed to fund the Clean Earth acquisition have affected our earnings and valuation outlook for Veolia.

Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions, including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is noncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat due to switching costs, as the business features razor-and-blade dynamics that drive highly recurring revenue.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

Veolia has agreed to acquire Clean Earth, Enviri's waste management business, for a $3 billion enterprise value (4% of Veolia's EV), implying an EV/EBITDA of 15 before synergies and 9.4 after synergies. Veolia was down 0.7% at the time of writing while Enviri was up 33% in pretrading.

Veolia's nine-month top line grew by 3.7% organically, in line with the first half. EBITDA grew by 2.9% in the third quarter and 5.3% organically, also roughly in line with the first half. The adverse foreign-exchange effect worsened in the third quarter. Guidance for 2025 was confirmed.

Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions, including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is uncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat thanks to switching costs, as the business exhibits ''razor-and-blade'' features driving highly recurring revenue.

European utilities shares decreased by 3% since the end of June, underperforming the market by about 6%.

Veolia's reported first-half results, in line with the company-compiled consensus. Earnings slowed down in the second quarter, chiefly because of an adverse exchange rate.

European utilities rose by 12% in the second quarter, outperforming the market by 10%.

First-quarter earnings were in line with the company-compiled consensus and full-year guidance, which was confirmed. Veolia agreed to buy the 30% share of Caisse de dépôt et placement du Québec in Water Technology and Solutions for $1.75 billion.

After rallying on April 3 together with government bonds, European utilities have been caught in the market rout since April 4.

European utilities increased by about 10% in the first quarter of 2025 thanks to good full-year results, attractive shareholder remuneration, and limited exposure to US tariffs. The latter was key in the material outperformance of the sector.

Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is uncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat thanks to switching costs as the business exhibits ''razor-and-blade'' features driving highly recurring revenue.

Bpifrance’s Lac1 sovereign wealth fund and narrow-moat Veolia announced a shareholder agreement on March 17, under which the former will acquire a EUR 800 million stake in Veolia and get a seat on its board of directors. On March 4, CriteriaCaixa, the investment division of La Caixa Foundation, concluded a similar agreement with Veolia, under which it will acquire 5% of its capital that it pledges to keep for at least two years and get a seat on its board. Those long-term shareholders provide stability to Veolia's capital structure and the shares purchased to build their stakes should support the share price. They are likely enticed by Veolia's attractive dividend. The current yield is 4.6%, in line with the sector's median whereas we project 7.4% annual growth by 2028, nearly twice as high as the 3.8% median of our coverage. We confirm our fair value estimate of EUR 37.50 and see the shares as materially undervalued.