Budimex (BDX) Q2 2024 earnings summary

Executive summary

• Sales revenue for H1 2024 decreased by 6.4% year-over-year, mainly due to the investment cycle in the railway segment and completion of major contracts, but operational profitability improved by 1 percentage point.

• The service segment increased sales by over 5% year-over-year, driven by waste management, though gross profit declined.

• The order backlog as of 30 June 2024 was PLN 15.3 billion, with contracts signed in H1 2024 totaling PLN 5.7 billion, providing stable revenue prospects through 2025.

• Cash position declined mainly due to a dividend payout exceeding PLN 911 million.

• No significant discontinued operations or direct impact from the war in Ukraine.

Financial highlights

• Net sales for H1 2024: PLN 4,040,180 thousand, down from PLN 4,317,944 thousand in H1 2023.

• Net profit for H1 2024: PLN 280,752 thousand, nearly flat year-over-year.

• Operating profit for H1 2024: PLN 295,837 thousand, up from PLN 272,635 thousand in H1 2023.

• Basic and diluted EPS for H1 2024: PLN 10.84, up from PLN 10.76 in H1 2023.

• Net cash flow from operating activities: PLN -178,446 thousand (outflow), compared to PLN 165,986 thousand (inflow) in H1 2023.

Outlook and guidance

• Backlog structure remains stable, mainly infrastructure and railway contracts, securing revenues through 2025.

• Value of bids with the lowest or highest-rated offers as of 30 June 2024 was approx. PLN 10 billion, with nearly PLN 5 billion in foreign markets.

• Contracts worth nearly PLN 1.5 billion signed after 30 June 2024, supporting stable order backlog for 2025-2026.