How Securing A$700 Million in Water and Energy Deals at Veolia (ENXTPA:VIE) Has Changed Its Investment Story

• Veolia Australia recently announced it has secured A$700 million in water operation and maintenance contracts and contract extensions with key utilities, including Central Highlands Water, Hunter Water, and Seqwater, as well as a sustainable energy initiative at the Gold Coast Desalination Plant.
• These contracts merge Veolia's water management and renewable energy expertise, highlighting the company's ability to deliver integrated, resource-efficient solutions to essential infrastructure providers across Australia.
• We’ll examine how these major multi-year contracts and the integration of renewable energy solutions could further enhance Veolia’s long-term investment story.

Find companies with promising cash flow potential yet trading below their fair value.

Veolia Environnement Investment Narrative Recap

To be a shareholder in Veolia Environnement, you need to believe in the company’s global leadership in sustainable environmental solutions and its ability to secure long-term, recurring contracts. The recent A$700 million in Australian water and energy deals aligns with this thesis, but does not meaningfully change the biggest short-term catalyst: ongoing order growth in water technologies, primarily driven by rising global compliance and infrastructure needs. However, the core risk remains operational complexity as Veolia continues integrating acquisitions at a rapid pace.

Among recent announcements, Veolia’s confirmed 2025 earnings guidance, expecting 9% net income growth before Suez PPA, remains especially relevant. This provides investors with a clearer outlook on how new multiyear contracts, such as those in Australia, support Veolia’s broader growth objectives amid tight cost controls and efficiency gains, reinforcing the importance of delivering on integration and margin improvement.

However, despite these growth stories, investors should be alert to…

Read the full narrative on Veolia Environnement (it's free!)

Veolia Environnement's narrative projects €51.5 billion revenue and €1.9 billion earnings by 2028. This requires 4.9% yearly revenue growth and a €0.7 billion earnings increase from €1.2 billion today.

Uncover how Veolia Environnement's forecasts yield a €34.87 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community participants set fair values for Veolia from €25.15 to €61.08, with 10 unique viewpoints represented. While opinions vary, the core risk of increasing operational complexity from ongoing acquisitions will be crucial for future profitability, consider the range of estimates as you weigh multiple outlooks.

Explore 10 other fair value estimates on Veolia Environnement - why the stock might be worth 12% less than the current price!

Build Your Own Veolia Environnement Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Veolia Environnement research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Veolia Environnement research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Veolia Environnement's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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