HOCHTIEF (HOT) Q3 2024 earnings summary

Executive summary

• Operational net profit rose 12% to €450 million, or 18% on a comparable basis, with nominal net profit at €579 million, up 61% year-on-year, driven by a €147 million one-off gain at CIMIC.

• Sales increased 7% year-on-year to €23.6 billion, with all segments contributing to growth; new orders surged 15% to €32.1 billion, and order backlog reached a record €66 billion, up 18%.

• Strong operating cash flow of €1.8 billion LTM, up €432 million year-on-year, with high cash conversion and robust Q4 cash generation expected.

• Strategic M&A included the acquisition of Dornan Engineering, integration of Flatiron and Dragados, and increased stake in Thiess to 60%.

• Dividend of €4.40 per share paid in July 2024, a 10% increase year-on-year, totaling over €330 million.

Financial highlights

• Group sales reached €23.6 billion for 9M 2024, up 7% year-on-year.

• Operational PBT rose 13% to €714 million, with a margin of 3.0% (+20bps); nominal PBT was €712 million, up 33%.

• EBITDA (adjusted) increased 6% to €1.3 billion; EBITDA margin at 5.5%.

• Net operating cash flow LTM reached €1.3 billion, up €301 million year-on-year.

• Earnings per share was €7.70, up 52% year-on-year.

Outlook and guidance

• FY 2024 operational net profit guidance is €560–610 million, up to 10% year-on-year, with strong cash generation expected in Q4.

• Turner targets operational PBT of €460–510 million by 2026, with continued growth in advanced technology projects.

• Abertis expected to contribute similarly to operational net profit in 2024 as in 2023.