Formento de Construcciones y Contratas (FCC) Q2 2025 earnings summary

Executive summary

• Revenue increased by 7.6% year-over-year to EUR 4.56 billion, driven by strong growth in environmental and water activities, as well as acquisitions in the UK, US, and France.

• EBITDA rose 11.3% to EUR 675.3 million, with margin improvement to 14.8%–15% due to higher revenues and prior-year provisions.

• Net profit attributable to the parent fell 71% to EUR 80.7 million, impacted by non-recurring items, currency effects, and the absence of discontinued operations' contributions.

• Backlog/guaranteed revenues portfolio grew 2.8% to over EUR 44 billion, led by Construction and international order intake.

• Net financial debt increased 7% to EUR 3.2 billion, mainly due to seasonal working capital needs.

Financial highlights

• Environmental revenues up 14.7% to EUR 2.3 billion, with significant organic and inorganic growth.

• Water revenues grew 9.2% to EUR 965 million, with Spain contributing over 50% and strong tariff and volume improvements.

• Construction revenues slightly declined to EUR 1.35 billion, mainly due to project completions in Spain.

• Concessions revenues surged 45.1% to EUR 50.5 million, driven by new projects and acquisitions.

• Group EBITDA margin improved to 14.8%–15.4% year-over-year.

Outlook and guidance

• Investments for the full year expected to be close to EUR 900 million, similar to last year.

• Water operational margins expected to remain stable or slightly improve in the second half, with higher consumption volumes in summer.

• Anticipates moderate growth in Environment in Spain and further expansion in Western Europe and the US, leveraging regulatory and technological trends.

• Water division expects improved international outlook, tariff increases, and stable EBITDA margin; contract renewal rate above 90%.

• Construction to focus on large infrastructure projects in Europe, Americas, Middle East, and Australia, with stable commodity prices and improved financing conditions.