Elecnor (ENO) investor relations material

Strategic vision and business model

• Entering a new phase with leadership change and a transformation plan, building on a 67-year history and strong safety culture.

• Business model structured around three synergistic pillars: services, projects, and investments, each generating synergies, reducing risk, and driving recurring cash flow and stable margins.

• Focus on electrification, urbanization, digitalization, and sustainability as megatrends driving growth and aligning with core capabilities.

• Operations span over 50 countries, with 81–85% of sales in OECD countries and a balanced domestic/international presence, ensuring stability and diversification.

• Emphasis on people and values, with management averaging 20 years of tenure, ongoing investment in talent development, and a workforce of over 24,600 employees.

Financial performance and shareholder returns

• Achieved turnover of €3.8 billion and EBITDA above €200 million in 2024, with consistent annual sales growth of 7% over the past decade.

• Net profit and cash flow have grown steadily, with a net debt/EBITDA ratio improving to below 1.5x and strong cash generation.

• Annual dividends increased from €21.8 million in 2014 to nearly €40 million in 2023, totaling €384 million over the decade, always paid in cash, with a pay-out ratio reaching 114% in 2024.

• 1H 2025 results: turnover of €2,001.5 million (+16.8% YoY), net profit of €50.2 million (+100.6% YoY, excluding capital gains), and EBITDA of €111.8 million (+86% YoY).

• Commitment to prudent, profitable growth, prioritizing margin and financial discipline over volume.

Strategic plan 2025–2027: growth levers and investment

• Six levers: services, projects, investments, people, digital transformation/innovation, and process optimization as cross-cutting strategic drivers.

• Free cash flow target for 2025–2027 is at least €350 million, with up to €400 million committed to investments and a goal to double 2021–2023 dividends to €220 million.

• Services: focus on value-added offerings, client relationships, and operational efficiency to improve margins.

• Projects: target higher-margin infrastructure projects, especially internationally, leveraging EPC expertise.

• Investments: plan to commit over €400 million in transmission, renewables, energy efficiency, and digital infrastructure, maintaining debt below 1.5x EBITDA.