GS Utilities Daily Engie EPS upgrades and a new data center catalyst on the horizon Veolia Environnement Update numbers...

Equity Research 3 August 2026 | 8:50AM CEST

GS Utilities Daily: Engie: EPS upgrades and a new data center catalyst on the horizon // Veolia Environnement: Update numbers post H1 results

Alberto Gandolfi | Goldman Sachs Bank Europe SE - Milan branch

Ajay Patel | Goldman Sachs International

Mafalda Pombeiro | Goldman Sachs International

Dhwani Khenwar | Goldman Sachs India SPL

Lawrence Lavizani | Goldman Sachs International

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Goldman Sachs GS Utilities Daily

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Engie: EPS upgrades and a new data center catalyst on the horizon

We update our Engie forecasts following H1 2026 results this morning (July 31st). H1 2026 EBITDA came in at €7.7bn (ex nuclear), current operating income at €5.3bn (ex nuclear) and net income at €3.0bn. Relative to our estimates of €5.2bn current operating income (ex nuclear), the strength came from stronger energy management. Given the strong financial performance recorded in H1 2026, Engie is raising its 2026 net recurring income Group share guidance to between €4.9 and €5.5bn, compared with the previously announced range of €4.6 to €5.2bn. Engie has 4 GW of advanced stage co-siting datacenter projects with some to be expected in the next 12 months. Engie leverages three value creation levers: (1) Enhanced margins on supply deals and risk management revenues; (2) Premium pricing on PPAs; (3) Co-siting developments that allow for the sale of power land at transaction value. We see this as another potential catalyst as visibility will come as projects fully mature. Post results, we adjust our estimates for H1 results for lower taxes, changes in hedging and FX and stronger energy management. As a result, we increase our EPS forecasts by c.2.8% on average for 2026-28. We remain Buy rated. More here.

Veolia Environnement: Update numbers post H1 results

We update our Veolia forecasts following H1 2026 results yesterday (July 30th). H1 2026 Revenue was €22,193m compared to €22,048m in H1 2025, +1.5% at constant scope and FX (ex-energy prices). EBITDA came in at €3,552m vs €3,367m in H1 2025, which equates to +5.0% at constant scope and exchange rates. Q2 EBITDA of €1,786m came broadly in line with our estimate of €1,783m. At the EBITDA line, numbers are in line. Veolia continues to expect organic EBITDA growth to be between 5-6%. However, the company states that net income Group share is expected to grow 8% at constant forex and including Clean Earth. This compares to 8% growth without Clean Earth, noting that the completed acquisition represents a c.€20m upgrade to our FY26 Net Income estimates. Post results, we adjust our estimates for H1 results and the completion of the Clean Earth acquisition. As a result, we increase our EPS forecasts by c.1.6% on average for 2026-28E. We remain Buy rated on Veolia with a 12-month price target of €41. More here.

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