Budimex (BDX) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 2024 were PLN 1,644.9 million, down 15% year-over-year, mainly due to the investment cycle in the railway segment and completion of major contracts.

• Net profit rose to PLN 121.6 million, up 10.6% year-over-year, with improved operating profitability despite lower sales.

• The service segment, led by FBSerwis, increased sales by nearly 8% and maintained stable gross profit.

• The order backlog as of 31 March 2024 was PLN 14.64 billion, securing revenues through 2025.

• Cash position improved to PLN 4.02 billion at quarter-end, driven by settlement of receivables.

Financial highlights

• Gross profit on sales increased to PLN 196.3 million (11.93% margin) from PLN 174.2 million (8.98%) year-over-year.

• Operating profit rose to PLN 115.0 million (7.0% margin) from PLN 102.3 million (5.3%) year-over-year.

• EBITDA not explicitly stated, but depreciation/amortization for Q1 2024 was PLN 38.7 million.

• Basic and diluted EPS was PLN 4.67, up from PLN 4.16 year-over-year.

• Net cash from operating activities was PLN 186.4 million, down from PLN 212.8 million year-over-year.

Outlook and guidance

• Backlog structure remains stable, with infrastructure and railway contracts comprising about two-thirds of value.

• Contracts signed in Q1 2024 totaled PLN 2.7 billion; post-quarter contracts add nearly PLN 500 million.

• Over PLN 10 billion in bids rated highest or lowest by ordering parties, including PLN 5 billion abroad, supporting future growth.

• Dividend of PLN 35.69 per share recommended, with payment proposed for June 2024.