Jean-Pierre Farandou's Unexpected SNCF Success Story
Five years. That's how long Jean-Pierre Farandou led SNCF, the French national railway company, and what a ride it was! He left office in 2024 with a bang – or rather, a quiet, incredibly profitable bang. Four years of profit? Check. A stunning 19% jump in net profit to €1.6 billion in his final year? Double check. It's a real testament to his vision and the incredible turnaround SNCF managed under his leadership.
A Financial Rollercoaster (Mostly Up!)
Overall, SNCF’s sales rocketed to €43.4 billion in 2024 – a 3.8% increase. That's pretty impressive, especially considering inflation was at 2.4%. Two stars really shone: SNCF Voyageurs (their passenger rail division) saw a 5.8% boost, and Keolis (their public transport arm) absolutely soared with a 9.6% increase. Laurent Trevisani, the group's financial director, was understandably thrilled. He pointed out that those numbers are even more impressive when you consider the economic headwinds.
TGV Triumphs and Other Tales
High-speed rail (TGV) was a huge winner. Their Inoui and Ouigo TGVs carried almost 130 million passengers in 2024 – a 4% increase compared to 2023, and a whopping 11% up on pre-pandemic levels. That €10.8 billion investment in their high-speed network? Definitely paid off.
Not everything was roses, though. Geodis, their logistics division, had a tougher time. Sales were flat, a victim of the global economic slowdown. It just goes to show – even the best companies can't always escape the wider economic climate.
On the debt front, things were surprisingly positive. SNCF kept their debt around €25 billion, which is manageable. Even better, SNCF Réseau (their infrastructure division) actually had a positive cash flow. It’s a sign that their financial recovery was really taking hold.
And then there's the hiring spree. 18,500 new permanent contracts in 2024? SNCF became France's top recruiter. That's quite a feat!
The Ticklish Subject of Ticket Prices
Now, let's talk about ticket prices – a topic always guaranteed to spark debate. There was a 1.5% fare increase in January, which Farandou defended, pointing out that the average TGV ticket price has stayed remarkably stable between €45 and €47 for years. He stressed that they hadn’t fully passed on cost increases to passengers, a decision that, interestingly, ended up slightly lowering the TGV business’s margin.
However, not all services saw such restraint. The SNCF and the Grand Est region, for example, hiked the price of TER seasonal tickets by 3% for cross-border commuters – that one didn’t go down so well.
Investing in the Future (and AI!)
SNCF isn't resting on its laurels. New-generation TGV trains are arriving in early 2026, bringing more seats and improved service. Beyond new trains, Farandou also championed strategic partnerships focused on innovation. A new "Chair in education and research on artificial intelligence and optimization for mobility" with École Polytechnique underlines SNCF's commitment to using technology to improve services and sustainability. The plan is to use AI for everything from optimizing routes to predictive maintenance, even improving passenger communication.
When Things Went Wrong (But Didn't Stay Wrong)
In July 2024, a coordinated sabotage attack hit the rail network, causing major disruptions. It was a serious challenge, but Farandou’s response was swift and decisive. He put the company on high alert, boosted security, and worked tirelessly to restore services. Within days, they were back on track. It highlighted not just his focus on financial success, but also his commitment to operational resilience.
A Legacy of Progress (and Profit!)
Jean-Pierre Farandou’s time at SNCF was a remarkable success story. He left the company in a far stronger position than he found it, financially and strategically. While challenges still lie ahead, his leadership paved the way for a more efficient, technologically advanced, and financially stable future for SNCF. It's a legacy to be proud of.
