Obrascón Huarte Lain (OHLA) Q2 2025 earnings summary

Executive summary

• Revenue for 1H25 was €1,689.5M, down 1.8% year-over-year, mainly due to a 53.3% drop in Industrial division sales, while Construction division drove growth and 73.9% of revenue was generated abroad.

• EBITDA rose 46.3% to €84.1M, with margin improving to 5.0% from 3.3% in 1H24.

• Attributable net loss narrowed to €29.7M from €34.2M in 1H24, impacted by non-recurring financial expenses and negative FX differences.

• Major recapitalisation and capital increases completed, improving financial profile and liquidity.

• Strategic divestment of Services business classified as discontinued operation.

Financial highlights

• EBIT: €46.2M (vs. €19.3M in 1H24); EBIT margin: 2.7% (vs. 1.1%).

• Net borrowings: €314.9M, down 30.4% from end-2024; total liquidity: €663.2M (-32% vs. end-2024).

• Book-to-bill ratio: 1.3x; order intake: €2,218.2M; order book: €8,627.6M (+1.7% vs. end-2024).

• Share price at end-June: €0.3005, down 25.5% YTD; market cap: €415.7M.

• Leverage ratio (recourse): 1.8x (down from 3.0x at end-2024); group leverage ratio at 2.2.

Outlook and guidance

• EBITDA at June 2025 confirms full-year guidance, with confidence in achieving €175M for the year.

• Construction margins and order book expected to remain strong; Industrial division margins and backlog anticipated to improve in 2H25.

• Strategic reorganisation plan targets €40M in structural cost reductions, lowering cost-to-sales ratio below 3%.