Formento de Construcciones y Contratas (FCC) investor relations material

Executive summary

• Revenues rose to €4.56 billion, up 7.6% year-over-year, driven by strong growth in Environment and Water divisions and acquisitions in the UK, US, and France.

• EBITDA increased by 11.3% to €675 million, with margin improvement to 14.8% due to higher revenues and prior-year provisions.

• Net earnings attributable to the parent fell 71% to €80.7 million, mainly due to discontinued activities, asset value adjustments, and non-recurring items.

• Portfolio/backlog exceeded €44 billion, up 2.8%, providing solid revenue visibility.

• Partial carve-out/divestment of cement and real estate activities in November impacts comparability of net earnings.

Financial highlights

• EBITDA: €675 million (+11.3% year-over-year); margin 14.8%.

• Net earnings: €80.7 million, down from €172.6 million, mainly due to discontinued activities and asset value adjustments.

• Cash flow from operations was €329.5 million, down €61 million year-over-year, mainly due to the carve-out.

• Net financial debt at €3.2 billion, up 7%, with most debt long-term.

• Backlog: €44.2 billion (+2.8% year-over-year), led by Construction and international order intake.

Outlook and guidance

• Investments for the full year expected to be close to €900 million, similar to last year.

• Water operational margins expected to remain stable in the second half, with possible improvement due to higher summer consumption.

• Anticipates moderate growth in Environment in Spain and further expansion in Western Europe and the US, leveraging regulatory and technological trends.

• Water division expects improved international outlook, tariff increases, and stable EBITDA margin; contract renewal rate above 90%.

• Construction to focus on large infrastructure projects in Europe, Americas, Middle East, and Australia, with stable commodity prices and improved financing conditions.