SPIE's Strong Q3 2024 Performance: Organic Growth and Bolt-on Acquisitions Drive Revenue

SPIE, a leading European multi-technical services provider, reported robust financial results for the first nine months of 2024, with a strong performance in the third quarter. The company's organic growth and strategic bolt-on acquisitions contributed significantly to its revenue, highlighting SPIE's resilience and adaptability in the face of changing market conditions.

SPIE's 9m 2024 revenue stood at €7,130.7 million, up +13.9% year-on-year, with a solid organic growth of +4.4%. The company's bolt-on acquisitions contributed €578.2 million to the 9m 2024 revenue, with Germany accounting for €320 million of the annual revenue acquired. SPIE's dynamic M&A strategy, coupled with its strict financial discipline, has led to a resilient and agile business profile addressing structural trends related to energy transition.


Energy transition trends significantly contributed to SPIE's organic growth in Q3 2024, with a solid level of organic growth at +1.7%. SPIE's unique positioning to address the acceleration in Transmission and Distribution activities provided excellent visibility, supported by structural trends such as decarbonation, electrification, and energy efficiency solutions. The company's strong pricing power, favorable mix effect, and proven quality of execution further increased margins, evidencing the high mission critical nature of its services.


SPIE's pricing power and mix effect significantly contributed to its margin increase in Q3 2024. Despite less impact of cost inflation on its topline, SPIE enjoyed a good pricing power, which combined with a favorable mix effect and proven quality of execution, allowed it to further increase its margin. This performance underscores the strong added value content of SPIE's solutions and the highly mission critical nature of its services.

In the current macroeconomic environment, SPIE has a resilient and agile business profile addressing the structural trends related to energy transition. As the company continues to execute its strategy, it is pleased to revise upwards its guidance for 2024 EBITA margin objective at at least 7.1% of revenue, leading to an EBITA growth above 20%.

SPIE's strong Q3 2024 performance demonstrates the company's ability to generate stable profits and cash flows, making it an attractive investment opportunity for income-focused investors. Its focus on sectors like energy transition and its disciplined approach to bolt-on acquisitions align with the author's core investment values, emphasizing stable profits and cash flows over speculative ventures.