France’s top construction firms look abroad amid political turmoil

France’s largest construction and infrastructure companies are increasingly looking beyond their borders as political uncertainty and slower domestic investment cloud the outlook at home.

Major players including Vinci SA, Eiffage SA, Bouygues SA, and Compagnie de Saint-Gobain SA are moving to reduce their reliance on the French market, shifting focus to international projects and markets with stronger growth prospects.

“All the listed construction and building materials companies in France have been shifting away from France,” said Sonia Baldeira, an analyst with Bloomberg Intelligence. “It has been a consistent story of diluting their exposure.”

The companies’ strategic pivot comes as France grapples with ongoing political instability. President Emmanuel Macron, still working to name a new prime minister after Sebastien Lecornu’s brief and unsuccessful tenure, is facing pressure to avoid a snap election. Yet with parliament split into three rival factions and little room for compromise, gridlock could persist.

This deadlock could affect key fiscal decisions, including the 2026 budget, which must be submitted by October 13. Contentious debates continue over pension reform and corporate tax policy, raising concerns among investors. Shares in France’s infrastructure sector have underperformed their European counterparts in recent months.

“Investors are particularly worried about French firms having to pay higher taxes and the impact of higher French bond yields on the valuations of their infrastructure assets,” said Ruairi Cullinane, an analyst at RBC Europe.

In contrast, neighboring Germany recently announced a €500 billion infrastructure investment over the next decade, adding to the appeal of companies with exposure to the German market.

“In Germany you had this big announcement for €500 billion coming for the next 10 years, so we could see a shift to some of the more exposed companies in the German market versus the French market,” Baldeira added.

The trend has accelerated the global expansion efforts of these firms. Vinci SA, for example, has significantly reduced its domestic dependence, with international projects now accounting for the majority of its order book.

“French political gridlock weighs on some elements of contracting demand but most of Vinci’s revenues now are outside of France and even more of its future contracting order book,” Cullinane noted.

Vinci is currently involved in major international projects, including a £2.2 billion investment in a second runway at London’s Gatwick Airport and a majority stake acquisition in Edinburgh Airport. The company is also expanding its footprint in Germany — its second largest international market — through acquisitions of electrical installation firm R+S Group and heating and ventilation specialist Zimmer & Hälbig.

Despite its diversification, Vinci still draws 42% of its revenue from France. Bouygues follows closely with 49%, while Eiffage remains more domestically dependent, with 65% of its revenue coming from the French market. Bouygues’ construction division is currently working to expand its order book across Europe, targeting 60% of revenue from the wider region. Meanwhile, Saint-Gobain is looking further afield, identifying Brazil and India as key growth markets.

Europe remains a promising frontier, particularly in the east, where infrastructure modernization is needed and potential post-war reconstruction in Ukraine offers long-term opportunities.

“We have a good story in Europe, and everyone is forgetting about it,” said Baldeira. “This is the energy transition, this is decarbonization, this is industrialization, more buildings. I think all will play very well for Vinci, Eiffage, Saint-Gobain.”

By Sabina Mammadli