In This Article:
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Group Sales: Increased by 20% to EUR33.3 billion.
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Operational Net Profit: Rose by 13% to EUR625 million.
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Nominal Net Profit: EUR776 million, including a EUR147 million one-off gain.
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Cash Flow from Operating Activities: Increased by over EUR600 million to EUR2.1 billion.
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Net Debt Position: EUR120 million, with a net cash position of EUR1.6 billion after strategic investments.
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Order Book: Ended the year at EUR67.6 billion, up by 13% on a comparable basis.
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New Orders: Rose by 14% to EUR41.8 billion.
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Turner Revenue Growth: 19% increase to EUR19.3 billion.
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Turner Operational PBT: 37% higher at EUR570 million.
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Turner Backlog: Increased by 30% to EUR32 billion.
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CIMIC Operational PBT: EUR450 million, up 6% on a comparable basis.
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CIMIC Order Backlog: EUR24 billion, up 3% year-on-year FX adjusted.
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Engineering & Construction Sales: Increased by 10% to EUR3.6 billion.
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Abertis Operating Revenues: Rose 10% to over EUR6 billion.
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Abertis EBITDA: 10% higher at EUR4.3 billion.
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Proposed Dividend for 2024: EUR5.23 per share, a 19% increase year-on-year.
Release Date: February 19, 2025
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 20% increase in group sales to EUR33.3 billion, with a solid operating margin.
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Operational net profit rose by 13% to EUR625 million, exceeding the top end of the guidance range.
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The company achieved outstanding cash generation, with cash flow from operating activities increasing by over EUR600 million year-on-year to EUR2.1 billion.
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The order book ended the year at EUR67.6 billion, up by 13% on a comparable basis, reflecting strong growth in new orders.
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Turner, a subsidiary, showed a standout performance with a 19% revenue growth and a 37% increase in operational PBT, driven by advanced technology projects.
Negative Points
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Hochtief AG (HOCFF) ended the year with a slightly net debt position of EUR120 million.
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The company's nominal net profit included a one-off gain, which may not be sustainable in future periods.
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Despite strong performance, the Engineering & Construction segment showed only a 7% increase in operational PBT, indicating slower growth compared to other segments.
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Abertis, a toll road company, had a nominal net profit impacted by the early termination of the Texas toll road.
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The company's strategic shift towards equity investments in growth markets involves significant capital allocation, which carries inherent risks.
Q & A Highlights
Q: Can you provide more details on the strategic acquisitions made by Hochtief in 2024? A: Juan Cases, CEO, explained that Hochtief executed several important M&A transactions to support strategic growth ambitions. Notably, Turner acquired Dornan Engineering for EUR400 million, enhancing its European expansion strategy. Additionally, Hochtief and Dragados integrated their North American civil engineering businesses, creating the second-largest player in the region. CIMIC also increased its stake in Thiess to 60% with a EUR195 million investment.