In This Article:
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Order Intake: EUR7.3 billion.
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Backlog: EUR14.9 billion.
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Sales: EUR1.3 billion.
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EBIT: EUR56 million.
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EBIT Margin: 4.3%.
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Net Cash Position: EUR423 million.
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Equity: EUR626 million including SEPI's PPL; EUR450 million excluding it.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tecnicas Reunidas SA (TNISF) reported a strong order intake of EUR7.3 billion for the first quarter, contributing to a solid backlog of EUR14.9 billion.
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The company achieved net sales of EUR1.3 billion in the first quarter, marking a 30% increase compared to the same period in 2024.
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EBIT for the first quarter grew to EUR56 million, representing a 40% increase from the previous year, with an EBIT margin of 4.3%.
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The company has a robust pipeline of EUR66 billion, providing strong visibility for future growth, particularly in North America and the Middle East.
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Tecnicas Reunidas SA (TNISF) is well-positioned in the energy transition sector, with expertise in blue and green ammonia, carbon capture, and sustainable aviation fuels.
Negative Points
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The company's financial expenses were relatively high this quarter, partly due to the cost of a hybrid loan with the Spanish government.
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There are ongoing project disputes, including those in Finland, which could impact financial performance if not resolved favorably.
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The macroeconomic environment presents uncertainties, particularly in the energy transition sector, where investment decisions are taking longer.
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Despite a strong backlog, the company faces challenges in accelerating project timelines to meet client demands, particularly in the Middle East.
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The company's growth strategy requires careful management of human resources, particularly in expanding engineering capacity in regions like India.
Q & A Highlights
Q: Can you elaborate on the key drivers supporting the 2025 revenue target, especially considering recent project awards? A: Eduardo San Miguel Gonzalez De Heredia, CEO: We are predicting a 15% increase in revenue to EUR5.2 billion for the year. While the first quarter was strong, we must consider the variability in project execution. We have several large projects where clients are requesting accelerated schedules, which could impact revenue delivery within 2025. However, our guidance remains at EUR5.2 billion, which we believe is a fair estimate.
Q: How does the current commercial pipeline compare to last year's, and what are you seeing in terms of client activity? A: Juan Llado Arburua, Executive Chairman: Our current pipeline is EUR66 billion, slightly below last year's EUR72 billion, but this reflects the significant awards we've secured. The pipeline is diversified across geographies and services, with a growing focus on services. We continue to see strong demand in gas development, petrochemicals, and energy transition projects.