Bouygues Targets US and German Expansion to Counter French Slowdown

French construction and telecommunications conglomerate Bouygues SA plans to expand its operations in the United States, Germany, and northern Europe to seek growth beyond its sluggish home market. The strategic shift will focus on the company's roadworks and electrical engineering services, according to its chief executive.

Shifting Focus Abroad

In an interview with Bloomberg TV on Wednesday, Chief Executive Officer Olivier Roussat highlighted the U.S. as a key growth area, describing it as a "very dynamic, rich and profitable market." He added that Bouygues also aims to expand in Germany and other northern European countries, while acknowledging that acquiring companies in the region can be challenging.

The push for international growth comes as France faces economic uncertainty ahead of next year's presidential election. Roussat noted that this political climate could hurt the company's real estate business and advertising revenue at its broadcasting unit, TF1, though its construction backlog remains robust.

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Infrastructure and Energy Targets

Bouygues intends to concentrate its expansion efforts on its road-construction business and its subsidiary Equans, which builds infrastructure tied to the clean energy transition. These sectors are seen as primary drivers for growth in the targeted U.S. and German markets.

For Germany specifically, Roussat stated that the company could potentially double or triple its revenue from the current level of about €1 billion ($1.16 billion). However, the CEO did not provide a timeframe for achieving this goal.