Formento de Construcciones y Contratas (FCC) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months rose 8.4% year-over-year to €6,550.1 million, with growth across all business areas, especially Water and Concessions, and notable expansion in the USA market.

• EBITDA increased 7.6% to €985.8 million, maintaining a margin of 15.1%, despite provisions for environmental transactions and lower electricity prices in Environment.

• Net attributable income reached €426.6 million, up 6.3%, supported by new concessions, higher financial expenses, and improved equity method results.

• Equity increased 6.8% to €6,562.5 million, and the backlog expanded 4.1% to €43,189.4 million, led by new contracts in Environment.

• Real Estate and Cement activities classified as discontinued from May 2024 due to a partial spin-off, with 2023 figures restated for comparability.

Financial highlights

• Net financial debt stood at €3,207.6 million, up 3.5% from December 2023, mainly due to over €1 billion in investments, including UK Urbaser, ESG France, GEL Recycling, and MDS USA.

• Backlog reached €43,189.4 million, up 4.1% from December 2023, with the largest increase in Environment.

• Net assets increased 6.8% to €6.5 billion.

• Working capital expansion is in line with targets and budget for the year.

• Revenue by geography: Spain 50.3%, Rest of Europe 13.6%, Americas 13.3%, UK 13.1%, Czech Republic 4.9%, Middle East/Africa/Australia 4.8%.

Outlook and guidance

• Management expresses optimism for future prospects, citing a stable utility profile and ongoing progress in the partial separation of the Inmocemento group.

• The Inmocemento spin-off and listing are expected before year-end, pending regulatory approval.