HOCHTIEF (HOT) Q2 2025 earnings summary

Executive summary

• Operational net profit rose 18% year-over-year to EUR 355 million, at the top end of guidance, with sales up 25% to EUR 18.4 billion, driven by strong organic growth and strategic acquisitions.

• New orders surged 26% year-over-year (fx-adjusted) to EUR 26.1 billion, with the order backlog reaching EUR 69 billion, up 15% year-over-year, providing 21 months of visibility.

• Strategic focus on advanced tech, data centers, energy transition, and sustainable infrastructure, leveraging global footprint and significant equity investments.

• Strong operating cash flow over the last twelve months at EUR 2.0 billion, with high cash conversion and disciplined capital allocation.

• Major M&A included the acquisition of Dornan Engineering and the Flatiron-Dragados combination, enhancing advanced-tech and North American civil engineering capabilities.

Financial highlights

• Sales: EUR 18.4 billion (+25% yoy); operational net profit: EUR 355 million (+18% yoy); nominal net profit: EUR 481 million (+10% yoy), including EUR 126 million in one-off gains.

• EBITDA (adjusted): EUR 1,025 million (+24% yoy); EBIT (adjusted): EUR 690 million (+15% yoy); operational PBT: EUR 588 million (+33% yoy).

• Operating cash flow (LTM, pre-factoring): EUR 2.0 billion (+EUR 0.5 billion yoy); net debt at EUR 1.4 billion, mainly due to capital allocation and FX effects.

• Dividend per share for FY 2024: EUR 5.23 (+19% yoy), 65% payout of operational net profit.

• Book-to-bill ratio at 1.2x; order backlog up 15% yoy (fx-adjusted); international sales 97% of total.

Outlook and guidance

• FY 2025 operational net profit guidance reiterated at EUR 680–730 million, up to 17% year-over-year.

• Turner segment guidance: EUR 660–750 million operational PBT (+16–32% yoy); CIMIC: EUR 480–510 million operational PBT (+7–13% yoy); Engineering & Construction: EUR 85–95 million operational PBT (+up to 24% yoy).

• Abertis expected to deliver operational result similar to EUR 81 million in 2024.

• Dividend policy remains at 65% payout of operational net profit.

• Cautious on FX volatility but confident business overperformance will offset currency impacts.