ACS Actividades de Construcción y Servicios (ACS) Q2 2024 earnings summary

Executive summary

• Net profit reached €416 million, up 8.6% year-over-year FX-adjusted, with EPS up 8.8% to €1.62 and ordinary net profit at €335 million, up 11.4%.

• Sales grew 6.3% FX-adjusted to €18,749 million, driven by high-tech markets and strong segment performance, especially Turner (+13.5%).

• Order backlog reached a record €86.7 billion, up 12.8% year-over-year, with new orders of €27.5 billion (+15.9%).

• Strong net operating cash flow of €358 million in H1, up €749 million year-over-year, with LTM NOCF at €1.8 billion.

• Major strategic moves included CriteriaCaixa becoming a core shareholder, acquisition of Dornan Engineering, creation of Flatiron Dragados in North America, and increased stake in Thiess.

Financial highlights

• H1 2024 sales: €18,749 million (+6.1% year-over-year), EBITDA: €1,157 million (+11.3%), margin 6.2% (+29 bps), EBIT: €807 million (+16.3%), PBT: €564 million (+16.8%), EPS: €1.62 (+8.8%).

• Net operating cash flow for the half was €358 million, a year-on-year improvement of €749 million; LTM NOCF at €1.8 billion.

• Net debt at June 2024 was €1.6 billion, mainly due to Thiess consolidation and strategic investments.

• Capital allocation of €1.6 billion in H1, including €650 million in Abertis, €194 million for 10% Thiess stake, and €438 million in shareholder remuneration.

• Monetization of €0.5 billion in derivative contracts and early settlement of treasury share forward contracts, generating a €646 million receivable.

Outlook and guidance

• Guidance for 2024 remains unchanged, with management confident in meeting targets and ordinary net profit growth at the top end of 8–12% guidance.

• Strategic focus on growth markets, with about 50% of new orders in next-generation infrastructure.

• Book-to-bill ratio at 1.2x and backlog visibility of 26 months support long-term growth outlook.

• Continued derisking and diversification, with over 85% of backlog in lower-risk contracts.

• Focus on expanding in energy transition, digital infrastructure, and sustainable mobility.