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Koninklijke Bam Groep NV (KBAGF) (Q2 2024) Earnings Call Highlights: Strong Revenue Growth ...

In This Article:

  • Revenue: EUR3.1 billion, a 6% increase from the previous year.

  • Adjusted EBITDA: EUR126 million, up 6% year-over-year.

  • Adjusted EBITDA Margin: 4%, consistent with the previous year.

  • Net Income: EUR55 million, with earnings per share of EUR0.20.

  • Order Book: Increased by 12% to EUR11 billion.

  • Liquidity Position: EUR453 million.

  • Capital Ratio: Improved to 24.5%.

  • Cash Flow from Operations: EUR111 million.

  • Adjusted EBITDA - Netherlands Division: EUR70 million, with a margin of 4.7%.

  • Adjusted EBITDA - UK and Ireland Division: EUR51 million, with a margin of 3.2%.

  • Home Sales: 832 homes sold in the Netherlands.

  • Depreciation and Amortization: EUR61 million, a 12% increase from last year.

  • Effective Tax Rate: 16% for the first half of 2024.

Release Date: July 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Koninklijke Bam Groep NV (KBAGF) reported a 6% increase in both adjusted EBITDA and group revenue for the first half of 2024, reaching EUR126 million and EUR3.1 billion respectively.

  • The company's order book increased by 12% to EUR11 billion, aligning with its strategic objective to expand in sustainable solutions.

  • The Dutch residential market showed improvement, with the sale of 832 homes, significantly higher than the previous year.

  • The liquidity position remained solid with a cash position of around EUR450 million, and the company did not utilize its revolving credit facility.

  • The Irish division showed substantial improvement, supported by a partial claim recognition for the National Children Hospital project, enhancing overall results.

Negative Points

  • The adjusted EBITDA margin guidance for the full year was revised down from 4%-6% to 4%-5%, indicating potential challenges in the second half of the year.

  • Significant losses were incurred from the Co-op Live project in Manchester and two school projects in Denmark, impacting overall profitability.

  • Construction UK reported an adjusted EBITDA loss of EUR24 million due to project delays and supply chain issues.

  • The Fehmarnbelt Tunnel project, expected to be completed in 2030, remains a long-term commitment with potential risks.

  • The company continues to face challenges in attracting and retaining staff, with a high number of vacancies remaining unfilled.

Q & A Highlights

Q: Why has the EBITDA margin guidance for the full year been adjusted from 4%-6% to 4%-5%? A: Leendert den Houter, CFO, explained that the adjustment is within the strategic bandwidth of 4%-6% presented earlier. The current guidance reflects the results of H1 and ongoing de-risking activities within the portfolio.