Formento de Construcciones y Contratas (FCC) Q2 2024 earnings summary

Executive summary

• Revenue rose 8.7% year-over-year to €4,237.5 million, driven by growth in Construction, Concessions, and Water, with new contracts and acquisitions, especially in the US market.

• EBITDA increased 4% to €608.4 million, with margin at 14.4%, impacted by a UK landfill tax provision and lower electricity sales prices.

• Net income attributable to the parent grew 9.2% to €279.6 million, aided by consolidation of the Parla Tramway concession and higher equity-accounted earnings.

• Net financial debt decreased 3.9% to €2,978.7 million, reflecting investment outflows and the exclusion of discontinued operations.

• Equity increased 4.9% to €6,442.6 million, supported by consolidated results and minority interests.

Significant events and developments

• Acquisitions included Gel Recycling Holdings in Florida and completion of Urbaser UK's purchase for £398 million.

• Entry into the US water market via the €81.9 million acquisition of MDS in Texas.

• Major new contracts in Spain and the US, including multi-year MSW collection deals in Florida, Minnesota, and North Carolina.

• Partial financial spin-off of Real Estate and Cement units to Inmocemento approved, with completion expected in Q4 2024; these units are now classified as discontinued operations.

• Glina WWTP extension in Romania recognized as one of the world's top four wastewater treatment plants.

Financial highlights

• Revenue: €4,237.5 million (+8.7% YoY); EBITDA: €608.4 million (+4% YoY); EBIT: €355.1 million (+9.5% YoY); Net income: €351.0 million (+11% YoY); EPS not specified.

• EBITDA margin declined to 14.4% from 15.0% due to non-recurring UK provision and lower energy prices.

• Net financial debt: €2,978.7 million (-3.9% vs Dec 2023); gross financial debt: €4,742.7 million.

• Operating cash flow: €390.7 million (+128.5% YoY); investment cash flow: -€752.4 million (up 95.5% YoY); cash and equivalents: €1,318.4 million.