Budimex (BDX) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was PLN 6,510 million, down 6.9% year-over-year, mainly due to the investment cycle in the railway segment and completion of major contracts.

• Net profit for the period was PLN 451 million, a slight decrease from PLN 460 million in the prior year, with improved operating profitability by 0.9 percentage point.

• The order backlog as of 30 September 2024 stood at PLN 15.8 billion, with contracts signed in 2024 totaling PLN 8.2 billion and additional contracts post-quarter-end exceeding PLN 1 billion.

• Cash position declined mainly due to a dividend payout of over PLN 911 million for 2023.

• The Group continues to operate in Poland and abroad, with ongoing projects in Slovakia, Czech Republic, and Latvia.

Financial highlights

• Gross profit for the nine months was PLN 784 million (12.04% margin), up from PLN 721 million (10.31%) year-over-year.

• Operating profit reached PLN 508 million (7.81% margin), up 5.5% from PLN 482 million (6.89%) in the prior year.

• Net profit margin improved to 6.93% from 6.57% year-over-year.

• Cash and cash equivalents at period-end were PLN 2,420 million, down from PLN 3,878 million at the start of the year.

• Net cash used in operating activities was PLN 326 million, compared to an inflow of PLN 319 million in the prior year.

Outlook and guidance

• The backlog largely secures revenues through 2025, with infrastructure and railway contracts comprising about two-thirds of its value.

• Management expects continued favorable prospects for the order portfolio, supported by contracts where the Group's bids are leading, especially in foreign markets.

• Key risks include economic uncertainty from the war in Ukraine, material price volatility, labor availability, and changes in tax regulations.