Vinci is one of the leading contractors globally, with extensive footprints in the construction, roadbuilding, and electrical engineering segments. It also operates one of the largest portfolios of transport infrastructure concessions, with a particularly strong presence in the toll road and airport sectors.
Investment Thesis:
- Vinci is the largest infrastructure developer in our coverage. Its business model revolves around a very high quality infra portfolio, the leading European contracting franchise and an acquisitive approach.
- While management’s capabilities are unquestionable, Vinci’s sheer size could reduce the potential for M&A to move the needle. Gatwick or Cobra Industrial Services display a step-up in M&A size but raise questions about what could be next in a crowded infrastructure market.
- Vinci’s asset quality and financial strength is allowing it to weather the mobility impasse triggered by the pandemic but one cannot lose sight of the fact that the firm’s key road assets end in 10-14 years.