Equans, acquired by French construction giant Bouygues in 2022, says its renewed focus on student new build, energy retrofit, and housing refurbishment is beginning to drive operational profitability. Reports Contract Journal
Despite recording another £29m pre-tax loss in 2024, the contractor absorbed £50m in non-recurring costs tied to the final phase of its restructuring and the completion of legacy new build projects.
These latest charges follow £53m in exceptional costs booked the previous year, stemming from the firm’s decision to fully exit the new build market by the end of 2025.
However, beneath these one-off expenses, the core business is showing positive signs. Underlying operations delivered an operating profit of £22.3m on turnover of £652m — up from £16.2m the previous year.
The move away from highly competitive design and build contracts is already bearing fruit. Operating margins on core activities rose to 3%, while turnover remained steady despite the major business shift.
Looking ahead, Equans Regeneration has secured a series of long-term housing frameworks, including:
- A £400m two-year interim agreement with Birmingham City Council for social housing maintenance and retrofit works.
- A £94m deal with Anchor to service 18,000 homes across the North and Midlands, the largest secured under Anchor’s new national repairs model.
- A £120m fire safety remediation programme with Southern Housing, running through to 2028.
The firm is also scaling up delivery under the Social Housing Decarbonisation Fund, with retrofit projects underway across North Lincolnshire, Suffolk, Harrow, Swindon and London valued at a combined £20.8m. Additional contracts have been secured with 54North Homes, Clarion, L&Q, and Notting Hill Genesis.
In 2025, Equans will kick off a Midlands-wide retrofit programme expected to generate £19.9m of work, rolling out insulation, low-carbon heating systems, and renewable energy solutions to thousands of homes.