Bouygues Earnings: No Great Surprises; No Changes to Estimates

No-moat Bouygues reported group level second-quarter sales of EUR 14.2 billion, a touch behind FactSet consensus but broadly in line with our estimates. Immobilier, Bouygues' residential construction unit, continues to be pressured, with sales there down 19% year over year. While management continued to have low visibility on the recovery here, we feel this unit should be nearing a nadir as interest rates are trending downward and efforts are being made to realign costs in the segment. Elsewhere, management confirmed its outlook for 2024, hoping to grow sales and current operating profit from activities at group level slightly from 2023 levels. With no changes to our estimates, we reiterate our fair value estimate of EUR 35.