Koninklijke BAM Groep (BAMNB) Q2 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 6% to €126 million in H1 2024, with revenue up 6% to €3,149 million, mainly driven by the Netherlands division.

• Net income attributable to shareholders was €55 million, with EPS of €0.20, slightly down from €0.22 in H1 2023 due to project losses in the UK and Denmark.

• Order book increased 12% to €11 billion, reflecting strong intake and a focus on quality over volume.

• Liquidity position remained solid at €453 million, with a net cash position of €394 million.

• Capital ratio improved to 24.5% from 23.4% at year-end 2023.

Financial highlights

• Adjusted EBITDA margin held steady at 4.0% for H1 2024.

• Cash and cash equivalents at period end were €453 million; net cash position (before leases) was €394 million.

• Depreciation and amortization increased 12% to €61 million due to investments in sustainable solutions.

• Cash flow from operations was €111 million, in line with last year.

• Share buyback program ongoing, with €27–30 million repurchased and an additional buyback underway.

Outlook and guidance

• Adjusted EBITDA margin guidance for full year 2024 narrowed to 4%-5%.

• Expect to sell approximately 1,700 homes in 2024, matching last year.

• Effective tax rate for 2024 expected around 16%, with long-term guidance of 18%-20%.

• Order book quality and selective tendering remain a focus; recent government changes in NL and UK seen as positive but awaiting concrete project rollouts.

• Market conditions are improving in residential and civil engineering, but non-residential construction faces delayed investment decisions.