HOCHTIEF (HOT) Q2 2024 earnings summary

Executive summary

• Sales rose 7% to EUR 14.6–14.7 billion in H1 2024, with operational net profit up 11% to EUR 301 million and record new orders of EUR 21.3 billion, driving order backlog to EUR 65.9–66 billion, up 23% year-over-year.

• Nominal net profit reached EUR 436 million, including a EUR 146 million non-cash gain at CIMIC.

• Strong operating cash flow of EUR 1.7 billion LTM, up over EUR 400 million year-over-year, with net debt at EUR 1.1 billion due to strategic investments and seasonality.

• Strategic acquisitions included Dornan Engineering (EUR 400 million) and increased stake in Thiess to 60%, fully consolidated from Q2, plus multiple bolt-on deals in energy transition and digital infrastructure.

• Dividend for FY 2023 increased by 10% to EUR 4.40 per share, distributed in July 2024.

Financial highlights

• Group sales rose 7% year-over-year to EUR 14.6–14.7 billion; operational net profit up 11% to EUR 301 million (18% on comparable basis); operational PBT up 8% to EUR 442 million; EBITDA up 14–38% to EUR 827 million.

• Nominal net profit at EUR 436 million (+67–76% year-over-year), driven by one-off CIMIC gain.

• Operating cash flow (LTM) at EUR 1.7 billion, up EUR 409 million year-over-year; net operating cash flow (LTM) at EUR 1.3 billion.

• Net debt at EUR 1.1 billion, but would show EUR 736 million year-over-year improvement excluding strategic investments.

• S&P investment grade rating (BBB-, stable outlook) maintained.

Outlook and guidance

• FY 2024 operational net profit guidance set at EUR 560–610 million, up to 10% higher than 2023.

• Turner targets operational PBT of EUR 460–510 million; CIMIC expects EUR 420–460 million; Engineering and Construction aims for EUR 80–95 million.

• Management remains cautious and prefers not to update guidance despite strong H1 performance.

• Robust demand expected in high-tech, energy transition, and sustainable infrastructure, supported by government stimulus and greenfield investment.