Tecnicas Reunidas (TRE) Q2 2024 earnings summary

Executive summary

• The SALTA strategy was launched, targeting an 8% EBIT margin and €5 billion turnover by 2028, focusing on de-risked, digitalized EPC, service contract expansion, and alliances such as Sinopec.

• H1 2024 saw €2.1 billion in sales, €84 million EBIT (4% margin), €42 million net profit, and a net cash position of €318 million.

• Backlog reached €10.96 billion, up 19% year-over-year, with €1.4 billion in new orders, including major US and Saudi Aramco projects.

• Strategic focus on North America, Middle East, decarbonization, digitalization, and talent development, with significant service contract wins.

• Major alliances and project wins, including with Sinopec, Ignis, and RWE, are driving growth and risk management.

Financial highlights

• H1 2024 revenue was €2.1 billion, EBIT €84 million (4% margin), EBITDA €99.2 million, and net profit €42 million.

• Net cash position at June 2024 was €318 million, with gross debt reduced by €63 million, including €33 million SEPI loan repayment.

• Quarterly sales in Q2 2024 reached €1.1 billion, up 9% sequentially.

• Backlog increased to €10.96 billion, reflecting strong project awards.

• No dividends declared in H1 2024 due to SEPI loan conditions.

Outlook and guidance

• 2024 guidance targets €4.5 billion in sales and a 4% EBIT margin, with a focus on project selectivity and backlog quality.

• The SALTA plan aims for EBIT of €380 million and sales of €5 billion by 2028, with an 8% EBIT margin.

• Shareholder remuneration policy to resume with at least 30% payout in 2026.