PORR (POS) Q2 2024 earnings summary

Executive summary

• Production output reached a record EUR 3,116m, up 3.3% year-over-year, with a strong order backlog of EUR 8,564m, the third highest in company history.

• EBIT improved by 23.7% to EUR 42.2m, with an EBIT margin of 1.4%, reflecting operational efficiency and selective acquisitions.

• The company remains resilient amid challenging market conditions, with robust performance in infrastructure and signs of recovery in residential construction.

• Strategic focus on sustainable construction, digitalisation, and operational excellence under the PORR 2025 program.

Financial highlights

• Revenue increased slightly by 0.6% to EUR 2,907.8m compared to the same period last year.

• EBITDA rose 8.4% to EUR 148.1m; EBIT up 23.7% to EUR 42.2m; EBT up 26.4% to EUR 34.8m.

• Net profit for the period surged 47.8% to EUR 27.5m; EPS increased to EUR 0.45 from EUR 0.31.

• Equity ratio improved to 19.4%; net debt increased to EUR 327.2m, mainly due to acquisitions and repayment of profit participation rights.

• Free cash flow decreased to EUR -230.8m, reflecting higher investment activity and seasonal factors.

Outlook and guidance

• Management expects a moderate increase in output and a further rise in EBIT for 2024, with a medium-term target to increase the EBIT margin to 3.0%.

• Civil engineering, digital infrastructure, and industrial construction are expected to drive growth, while residential construction is anticipated to recover by 2025.

• The order backlog of EUR 8.6bn supports continued growth; risks remain from potential geopolitical escalation.