Vinci's Resilient International Growth Amid Tax Headwinds: A Blueprint for Tax-Resilient Infrastructure Investing

In the volatile world of European infrastructure investing, one name stands out like a beacon: VINCI. Despite the continent's fiscal turbulence—rising corporate taxes, energy market volatility, and political uncertainty—VINCI has not only weathered the storm but thrived. Its €71.3 billion order book as of July 2025, a 6% year-on-year jump, proves that geographic diversification and sectoral strength can turn short-term headwinds into long-term tailwinds. For investors seeking stable, tax-resilient growth, VINCI offers a masterclass in strategic execution.

The Tax-Adjusted Earnings Play: Why Geography Matters

France's new tax on long-distance transport infrastructure operators, which hit VINCI's Autoroutes division €284 million in 2024, might have rattled short-sighted investors. But VINCI's leadership turned this challenge into an opportunity. By leaning into its international operations—now 58% of total revenue in 2024—the group offset domestic pressures with global gains.

Take VINCI Energies, the energy solutions arm. Its 2024 revenue surged 6.4% to €27.5 billion, driven by acquisitions in Germany, the UK, and Eastern Europe. The company's order intake hit €22.1 billion, fueled by data center builds, defense contracts, and renewable energy projects. Even as France grapples with energy transition costs, VINCI Energies is thriving in markets where governments are accelerating decarbonization.

The math is simple: When one region falters, another compensates. VINCI's Concessions business, including VINCI Airports, exemplifies this. With 318 million passengers in 2024—surpassing pre-pandemic levels—airports in Brazil, the UK, and India are generating steady cash flow. Meanwhile, VINCI Highways' 15% revenue growth in 2024 shows how toll roads in the U.S. and Canada are insulated from European tax drama.

Order Book Momentum: A 14-Month Buffer for the Future

VINCI's €71.3 billion order book isn't just a number—it's a fortress. This figure represents 14 months of average business activity, ensuring a steady pipeline of revenue even as tax regimes shift. The breakdown is telling: 52% of the order book now comes from outside France and Germany, with 70% of the total in Energy and Construction.

The Construction segment, in particular, is a cash-flow engine. VINCI Construction's €33.7 billion in 2024 order intake—driven by sustainable mobility and environmental projects—shows how the company is aligning with global megatrends. From high-speed rail in the U.S. to green hydrogen plants in Australia, VINCI is locking in contracts that pay for themselves over decades.

But the real magic lies in VINCI's ability to balance its portfolio. While Concessions businesses (airports, toll roads) provide predictable cash flow, Energy and Construction offer high-margin growth. This duality ensures that even if one segment slows—say, due to a tax hike in France—the others accelerate.

Tax-Adjusted Earnings: The Long Game

Here's where VINCI outplays its peers. In the first half of 2025, its tax-adjusted net income rose nearly 10% to €2.2 billion, or €3.86 per share. Excluding France's higher corporate tax burden, the company would have matched its 2024 earnings. This resilience isn't luck—it's design.

VINCI's “anti-cyclical” strategy—spreading risk across geographies and sectors—means it's never fully exposed to one market. For example, while France's transport tax hit Autoroutes, VINCI Airports' growth in Asia and Latin America more than compensated. Similarly, the company's share buybacks and strategic acquisitions (34 in 2024 alone) have boosted returns for shareholders, even as debt rose to €20.4 billion.

Why This Is a Buy for Long-Term Investors

The key takeaway? VINCI isn't just surviving—it's redefining what it means to be a European infrastructure giant. Its order book, tax-adjusted earnings, and international focus position it as a “tax-resilient” play in a sector where many competitors are floundering.

For investors, this means buying VINCI (EPA: VIN) for its durability. At a time when energy transition and AI infrastructure demand are surging, VINCI is uniquely positioned to capture both. Its EBITDA of €12.7 billion in 2024—17.7% of revenue—shows that profitability isn't a casualty of growth. And with a 13% order book growth in 2024 and 6% in H1 2025, the company is building a bridge to the future.

The only question left is: Are you ready to follow?