In This Article:
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Global Dominion Access SA (XMAD:DOM) reported a 7% organic growth at constant currency for Q1 2025.
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The company has improved its operational profitability, with contribution margins increasing to 16% and EBITDA reaching 13.6%.
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A significant reduction in financial expenses was achieved, contributing to a 22% growth in profit from continuous operations.
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The company has a diversified position in terms of geographies and businesses, which helps mitigate risks from geopolitical events.
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New contracts in various sectors and geographies, such as water recycling in Greece and sludge treatment in Spain, support future growth.
Negative Points
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The tariff war initiated by the North American government poses potential indirect risks to the company.
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Forex effects negatively impacted the company's growth by 0.7%.
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The GDT projects segment experienced a 2% decline in turnover and a 4% drop in contribution margin.
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Macroeconomic uncertainties and delays in project materialization have affected the performance of certain segments.
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The company is still in the process of divesting its renewable assets, which could impact short-term financial stability.
Q & A Highlights
Q: How is the sale of the Cerritos wind farm in Mexico progressing, and what are the divestment policies in place? A: The sale is proceeding as planned, with 17 out of 22 wind turbines connected. The project is expected to be fully operational by June, after which non-binding offers will be considered. The aim is to maximize the sale price, and the process is expected to conclude by the end of this year or early next year. (Respondent: Unidentified)
Q: What is the status of the divestments in the Dominican Republic, and when are they expected to be completed? A: The divestment process is underway, with binding offers accepted and negotiations ongoing for the purchase contract. The projects are generating revenue, and the sale is expected to be formalized by the end of Q2 or Q3. The enterprise value is approximately 400 million, and the aim is to reduce infrastructural debt to zero. (Respondent: Unidentified)
Q: Can you provide the total backlog of the company, particularly for tech energy services and projects? A: The backlog for tech energy projects is 440 million, similar to last year's figure. The focus is on sustainability and decarbonization projects, which are typically short-term and service-oriented. The backlog information is not deemed necessary for the environment division due to the nature of the projects. (Respondent: Unidentified)