In This Article:
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Maire SpA (STU:3OY1) reported a strong start to 2025 with revenues and EBITDA growing by over 35% year-on-year.
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The company achieved a robust order intake, securing 3.5 billion in new awards in the first quarter, with an additional 900 million in April.
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Maire SpA paid the highest dividend in its history, amounting to 114.5 million, demonstrating its commitment to shareholders.
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The company's backlog increased to 15.4 billion, providing a backlog cover of over 2.4, enhancing revenue visibility.
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The Sustainable Technology Solutions business unit secured new awards worth 112.9 million, reinforcing its commitment to sustainable innovation.
Negative Points
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Despite strong performance, Maire SpA did not revise its 2025 guidance due to ongoing international market uncertainties.
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The company faces challenges in the European market, limiting its exposure to engineering and procurement contracts due to difficulties in finding quality construction partners.
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There is a potential impact on the net financial position due to significant cash outflows for dividends and share buybacks.
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The geopolitical situation and macroeconomic uncertainties could potentially impact future project discussions and bidding processes.
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The weakening of the US dollar could pose challenges, although the company has hedging policies in place to mitigate currency risks.
Q & A Highlights
Q: Alessandro, you mentioned the potential to upgrade guidance but refrained due to macro uncertainties. Have these uncertainties impacted discussions for future projects or the bidding process? Also, could you provide insights on working capital movements in Q1 and expectations for upcoming quarters? A: Alessandro Bernini, CEO: The macro uncertainties have not affected our operations or discussions for future projects. We are cautious about revising guidance prematurely and will wait until our budget review is complete. Regarding working capital, we continued the positive trend from late 2024. While there may be fluctuations due to dividend payouts and share buybacks, we expect positive cash flow from new orders to stabilize working capital in the coming quarters.
Q: Is the first quarter execution rate for ENC sustainable for the coming quarters? Also, could you provide an update on the Kazakhstan project and its final investment decision process? A: Alessandro Bernini, CEO: The first quarter execution rate is sustainable, and we have elements that suggest an upward revision of our guidance. Regarding Kazakhstan, we have received a letter of award but cannot disclose details until the formal contract is signed. We expect to provide more information soon.