In This Article:
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hochtief AG (HOCFF) reported a 10% year-on-year increase in group sales, reaching EUR23.6 billion.
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Operational net profit rose by 12% to EUR450 million, with a nominal net profit increase of 61% year-on-year.
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The company achieved a record order backlog of EUR66 billion, reflecting an 18% year-on-year growth.
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Significant growth in strategic markets, with new orders up 15% year-on-year, particularly in advanced tech and sustainable infrastructure projects.
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Strong cash generation with operating cash flow of EUR1.8 billion over the last 12 months, marking an increase of over EUR430 million year-on-year.
Negative Points
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Hochtief AG (HOCFF) ended the period with a net debt position of EUR1.66 billion, influenced by strategic investments and seasonality.
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The company's net cash position would have been EUR790 million, indicating a year-on-year increase of almost EUR860 million, but this is adjusted for several impacts.
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Operational PBT at Cimic was up only 4% on a comparable basis year-on-year, indicating slower growth compared to other segments.
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The engineering and construction segment's operational PBT remained stable at EUR61 million, with some project mix effects impacting margins.
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Abertis' operational net profit pre-PPA remained at a similar level to last year, showing limited growth in this area.
Q & A Highlights
Q: Can you provide more details on the significant increase in Hochtief's order backlog and the strategic markets contributing to this growth? A: Juan Santa Maria, CEO: The order backlog reached a record level of EUR66 billion, marking an 18% year-on-year increase. This growth is driven by a 15% rise in new orders, particularly in advanced tech, energy transition, and sustainable infrastructure projects. Strategic growth markets accounted for around 50% of the new work, offering substantial revenue growth opportunities.
Q: How has Hochtief's financial performance been in the first nine months of 2024? A: Peter Sassenfeld, CFO: Hochtief reported a 10% increase in group sales to EUR23.6 billion and a 12% rise in operational net profit to EUR450 million. The nominal net profit surged by 61% to EUR579 million, driven by strong operational profit growth and a significant non-cash gain in the second quarter.
Q: What are the key strategic developments Hochtief has undertaken recently? A: Juan Santa Maria, CEO: Hochtief has made several strategic moves, including the acquisition of an additional 10% stake in Abertis and the integration of North American businesses Flatiron and Gaos. These actions aim to consolidate our market position and support growth in specific segments.