ACS Actividades de Construcción y Servicios S A : News HOCHTIEF earns 142 million euros in Q1, rising 16% 13.05.2024 Read

• Operational net profit up 16% on comparable basis to EUR 142 million
  • Strong sales growth of 9% year on year driven by all divisions
  • Robust margins
• Strong net operating cash flow of EUR 1.2 billion last twelve months (LTM) driven by sustained high cash conversion
  • LTM net operating cash flow increases strongly by EUR 455 million yoy
  • Q1 cash outflow reflects typical seasonal pattern and is in line with Q1 2023
• Seasonal net debt position improved by EUR 71 million year on year, or EUR 331 million before Abertis capital increase
• Record Q1 new orders of EUR 10.5 billion, up 25% year on year f/x-adjusted; further increase in the order backlog (+13%)
  • Strategic focus on growth markets (approx. 50% of new orders) and majority with lower risk profile
  • Order backlog of EUR 58.7 billion, up EUR 6.9 billion year on year, equivalent to 22 months of work done
• FY 2024 guidance reiterated: operational net profit of EUR 560 - 610 million (up to +10% yoy)
  • 2023 dividend of EUR 4.40 per share approved at AGM (2022: EUR 4.00)

"HOCHTIEF has achieved a positive start to 2024 with strong growth in sales, new orders and in the Group order book, as well as higher profits," says CEO Juan Santamaría.

During the first quarter of the year, Group sales increased by 9% to EUR 6.8 billion. HOCHTIEF's operational net profit rose by 3% to EUR 142 million or 16% if one adjusts for the profit contribution from the stake in Ventia which was divested in 2023.

The cash flow performance for the period reflects the characteristic seasonal movement seen during the first quarter of the year. Looking at the last twelve months, net operating cash flow stands at a strong level of EUR 1.2 billion, reflecting a high level of cash conversion, and representing an increase of more than EUR 450 million year on year.

HOCHTIEF ended the period with a solid balance sheet showing net debt of EUR 319 million, a EUR 71 million improvement year on year. This is after EUR 301 million in dividend payments to shareholders. Adjusting for the Q1 2024 EUR 260 million investment in the capital increase at Abertis, where HOCHTIEF holds a 20% stake, Group net cash would show an increase of EUR 331 million year on year.

New orders during the first quarter of 2024 rose strongly to EUR 10.5 billion up 25% year on year f/x-adjusted and include several important high-tech, energy transition and sustainable infrastructure projects. At the end of March 2024, the Group's order book stands at EUR 58.7 billion and is up by EUR 6.9 billion year on year, or 13%.

HOCHTIEF continues to deliver on the Group's strategy which has three pillars:

• De-risking: HOCHTIEF has increased the use of collaborative style contracts
• Diversifying into growth areas including high-tech, energy transition and sustainable infrastructure
• Investing equity into the Group's core infrastructure markets as well as in rapidly expanding growth markets

At the same time, the company is progressing well with the implementation of our Sustainability Plan 2025.

From Q1 2024 HOCHTIEF has been reorganized along three business lines: Integrated Solutions, Engineering & Construction and Infrastructure, which span the entire infrastructure value-chain. This will allow HOCHTIEF to extend its leadership in core infrastructure assets to areas including high-tech and digital, energy transition, sustainable mobility and critical minerals.

From a financial reporting perspective HOCHTIEF will now be reporting the group's activities based on four segments: Turner, CIMIC, E&C and Abertis.
"The future offers huge opportunities for the Group, for which we are very well positioned. We will continue to leverage our expertise and capabilities for the benefit of all our stakeholders," says HOCHTIEF CEO Juan Santamaría.

Group Outlook

Group guidance for 2024 reiterated: HOCHTIEF expects to achieve an operational net profit in the range of EUR 560−610 million which represents an increase of up to 10% yoy, subject to market conditions.