SNCF's Farandou Set to Depart Amid Record Profits and Political Uncertainty
SNCF CEO Jean-Pierre Farandou prepares to leave amidst record profits and political funding challenges.
- • Farandou to leave SNCF in fall 2025 after prolonged interim period.
- • SNCF reports record profit of €950 million in H1 2025, largely due to increased TGV passengers.
- • Political instability impacts long-term rail project planning, with potential funding cuts being discussed.
- • Future of rail infrastructure uncertain amid government budget deficits and delays in decision-making.
Key details
Jean-Pierre Farandou, the CEO of SNCF, is poised to exit his role in the fall of 2025, marking a significant leadership shift at the French rail operator. His tenure has seen SNCF bask in a record profit of €950 million in the first half of 2025, a substantial sixfold increase compared to the prior year. This financial uptick is attributed, in part, to a resurgence in passenger numbers on TGV trains, which exceeded 81 million trips during this period.
Despite the positive financial results, the ongoing political climate poses challenges to the future of France's rail infrastructure. Farandou has been a vocal proponent of increased government funding to modernize the aging rail network, especially in the South-West of France. However, the current government is grappling with a significant budget deficit, leading to discussions about potentially reducing its financial involvement in major rail projects. This comes after years of political upheaval that have disrupted long-term planning for rail infrastructure investments.
Past suspensions of high-speed rail initiatives, notably during Emmanuel Macron’s and Nicolas Hulot’s tenures in 2017, have left lingering concerns about the stability and continuity of rail development. The government’s previous reforms had somewhat relieved SNCF’s debt, but the looming budget constraints put the future of these vital infrastructure projects in jeopardy, raising the stakes for both advocates and critics of high-speed rail as delays continue to escalate costs.