Formento de Construcciones y Contratas (FCC) Q1 2025 earnings summary

Executive summary

• First quarter 2025 results show an 8.9% increase in consolidated revenues to €2,181.7 million, mainly from Environment and Water segment growth and recent acquisitions in the UK, US, and France.

• EBITDA rose 14.6% to €324.4 million, with margin up to 15%, reflecting strong operational performance and a favorable base effect in Environment.

• Attributable net profit declined 43.8% to €58.8 million, mainly due to the carve-out/spin-off of Cement and Real Estate activities and adverse FX effects.

• Backlog increased 6.3% to €45,757.6 million, with Construction contributing significantly.

• Revenue and EBITDA comparisons are valid year-over-year, with strong performance in Environment and Water.

Financial highlights

• Net financial debt was stable at about €3.1 billion, with a 3.5% increase from December 2024 due to seasonal working capital needs.

• Equity slightly decreased by 0.3% to €3,724.8 million, mainly from FX impacts on minority interests.

• Net assets slightly decreased by 0.3% to just over €3 billion.

• Revenue by geography: Spain 49.9%, Rest of Europe 16.4%, Americas 13.4%, UK 11.7%, Czech Republic 5.0%.

• Backlog to annual revenue ratio remains robust, supporting future earnings.

Outlook and guidance

• Leverage target remains under 3x EBITDA, with expectations to maintain this level by year-end.

• No plans to further reduce leverage, as current levels are considered robust and aligned with the business model.

• Backlog expansion across all business areas, especially Construction, supports future revenue visibility.

• Water segment EBITDA is expected to be closer to 2024 levels for the full year due to seasonality.

• Recent contract wins and renewals in Environment and Water, and major project additions in Construction, underpin growth prospects.