PARIS, Feb 26 (Reuters) - Bouygues set a cautious tone for 2026 on Thursday, guiding for stable sales and core earnings, a step down from the slight growth seen in 2025, as the linear TV ad market in France remains under pressure.

The French conglomerate said improvement at its energy-services arm Equans should offset weaker profits at broadcaster TF1. Equans is expected to clinch a margin of 5% from activities in 2026, a year ahead of the initial targets set in 2023 after its acquisition.

For 2025, the family-owned company reported sales of 56.9 billion euros ($67.2 billion) and a current operating profit from activities of 2.6 billion euros, both matching analysts' average estimates. 

Bouygues' goal is to maintain its operating profit "at a record high level" into 2026 after several years of gains, it said.

The group proposed a dividend payout of 2.10 euros for the year, up 5% from 2024.

Its shares were up 2% by 0928 GMT, trading at their highest levels since 2008.

BOUYGUES LEADING MEGA FRENCH TELCO BID

Bouygues said in the report it would update the market regarding the joint bid to buy Altice France's telecoms activities with Orange and Iliad "when appropriate", as due diligence, started in January, is still ongoing.

"The (2027) French presidential election doesn't necessarily play a very important role in how this operation is conducted," CEO Olivier Roussat told reporters in a post-earnings call.

"Obviously there are things that can be looked at from a strictly internal political standpoint regarding employment, but the fairly essential issue will consist of the anti-competition remedies that may be required by the antitrust authorities," he said.

Any deal to buy most of Altice France would likely face a review by the European Commission given its size, though both the French government and France's competition watchdog may also be asked to review the case.

($1 = 0.8462 euros)

(Reporting by Gianluca Lo Nostro in Paris; Additional reporting by Clément Martinot; Editing by Milla Nissi-Prussak)

By Gianluca Lo Nostro