Formento de Construcciones y Contratas (FCC) Q4 2024 earnings summary

Executive summary

• Revenue rose 10.4% year-over-year to EUR 9.07 billion, driven by growth in all business areas, especially concessions, environment, and water, supported by new contracts and acquisitions in Europe and the USA.

• EBITDA increased 11.7% to EUR 1.4 billion, with a margin of 15.8%, reflecting higher revenue and stable operational margins, notably from concessions.

• Attributable net profit declined 27% to EUR 429.9 million, mainly due to lower results from discontinued activities after the carve-out and a base effect from an exceptional 2023 real estate gain.

• Net financial debt decreased 3.5% to EUR 2,990.4 million, aided by the exclusion of spun-off areas and increased investment payments, especially in environment and water.

• Equity fell 39.2% to EUR 3,736 million, primarily due to the financial spin-off of real estate and cement activities.

Financial highlights

• Operating cash flow improved significantly, with a EUR 500 million increase over 2023, driven by lower working capital needs, especially in construction and environment.

• Investment cash flow saw net outflows of EUR 1.295 billion, up 24.6%, reflecting increased investments, notably in environment (UK Urbaser, GEL Recycling in Florida) and France.

• Financing cash flow had an inflow of over EUR 200 million, with increased debt contracting (EUR 579 million) to support investments and higher interest payments due to rising rates.

• Net financial debt/EBITDA improved to 2.1x.

• Backlog reached EUR 43.04 billion, up 3.8%.

Outlook and guidance

• Growth expected to continue, supported by a strong backlog, recent acquisitions, and new contract wins in core business areas.

• Working capital is expected to remain stable in 2025 and 2026, similar to 2024 levels, with no significant expansion anticipated.

• Dividend policy remains flexible, with sustained payouts since 2019; future dividends will be decided by the board.

• Maintenance CapEx is around 7% of revenues, approximately EUR 600 million last year.

• Focus on international expansion, especially in environment and water, and further integration of recent acquisitions.