Formento de Construcciones y Contratas (FCC) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 17.1% to €9,026.0 million; EBITDA increased 16.6% to €1,529.6 million, while attributable income climbed 87.5% to €591.0 million.

• Backlog reached €41,620.8 million, up 3.3% YoY, led by Water; net financial debt declined 2.9% to €3,100.1 million.

Financial highlights

• Net income was €744.8 million, up 55.8%; income attributable to the parent was €591.0 million, up 87.5%.

• Operating cash flow fell 49.2% to €785.4 million, mainly due to a €691.4 million working-capital outflow; investment cash flow was a €962.4 million outflow.

• Equity increased 24.4% to €6,145.9 million, supported by profit and the sale of a 24.99% Environment stake.

Outlook and guidance

• The Urbaser UK business acquisition was expected to close in Q2 2024, subject to customary conditions; enterprise value was £398 million.

• Working-capital absorption, concentrated in Construction and partly Environment, was expected to reverse in Q1 2024.

• Jerez waste-facility upgrades are expected to come online in 18 months; the associated operating contract runs for 20 years, with expected revenues of €317 million.