Obrascón Huarte Lain (OHLA) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 17.4% year-over-year to €2,649.5 million, driven by strong growth in Construction and Industrial divisions.

• EBITDA increased 3.2% to €86.9 million, with a margin of 3.3%, while attributable net loss was €58.3 million, impacted by accounting factors and discontinued operations.

• Order intake reached €3,497.3 million (book-to-bill ratio 1.3x), and the order book grew 5.3% to €8,196.6 million.

• Recapitalization efforts included a €150 million capital increase, bondholder agreements, and asset divestments to strengthen equity and reduce debt.

• International activity remains strong, with 73.3% of turnover generated abroad and a diversified order book by geography and project size.

Financial highlights

• Sales: €2,649.5 million (+17.4% YoY); Construction €2,396.9 million (+15.4%), Industrial €227.8 million (+44.5%).

• EBITDA: €86.9 million (+3.2% YoY); Construction €101.2 million (flat), Industrial €8.0 million (+86.0%).

• EBIT: €33.4 million (-7.5% YoY); Net loss attributable to parent: €58.3 million (vs. €14.2 million profit in 9M23).

• Total liquidity: €675.9 million; net debt: -€152.4 million (improved by 47.9% YoY).

• Share price at end-September: €0.2638, down 41.33% YTD; market capitalization €155.9 million.

Outlook and guidance

• Sales and EBITDA continued to improve into October, with YoY increases of 18.2% and 13.9% respectively.

• Cash generation trend remains positive, with €73.5 million generated from April to October.

• Management expects year-end cash generation and profitability to be similar to 2023, despite margin pressures.