PORR (POS) Q3 2024 earnings summary

Executive summary

• Production output rose 4.6% year-over-year to EUR 5,020m, with strong growth in CEE and Infrastructure International segments, especially in Romania and Poland.

• Order backlog remains high at EUR 8,198m, despite a 5.8% decrease due to completion of large projects; order intake fell 9.9% but adjusted for one-time effects, the decline is minimal.

• EBIT increased 17.8% to EUR 91.9m, driven by material cost savings and higher output; EBIT margin improved to 2.0%.

• Net profit for the period rose 22.5% to EUR 60.8m; EPS up 12.4% to EUR 1.18.

• Share price increased 6.9% year-to-date, with a buyback program announced in October 2024.

Financial highlights

• Revenue grew 3.3% year-over-year to EUR 4,608.9m; EBITDA up 8.8% to EUR 249.7m.

• Depreciation and amortisation increased 4.2% to EUR 157.8m.

• EBT rose 15.6% to EUR 78.6m; equity ratio stable at 19.5%.

• Net debt increased to EUR 335.9m, mainly due to profit-participation rights redemption and acquisitions.

• CAPEX up 14.6% to EUR 255.2m, reflecting investments in equipment and market expansion.

Outlook and guidance

• 2024 production output expected between EUR 6.7bn and EUR 6.8bn; revenue between EUR 6,150m and EUR 6,250m.

• EBIT forecasted at EUR 150m–160m for 2024; EBIT margin expected to reach 3.0% in 2025.

• High demand for infrastructure and data centers anticipated, especially in Poland and Germany.

• Geopolitical risks and market volatility remain key uncertainties.