Mota-Engil (EGL) H1 2024 earnings summary

Executive summary

• Achieved record-high EBITDA of €396 million in H1 2024, with a 15% margin, reflecting strong execution and quality backlog.

• Net profit attributable to the Group surged 65% year-on-year to €49 million.

• Backlog reached €13.7 billion, up 6% year-to-date, driven by large-scale project awards in Africa and Latin America.

• Focused on core markets, with 79% of backlog in Angola, Mexico, and Nigeria; 60% of backlog in Africa.

• Strategic asset rotation continued, including sale of 9% stake in Lineas and progress on Mexican and Polish asset transactions.

Financial highlights

• Turnover hit a record €2,732 million, a 7% year-on-year increase, led by strong performance in Latin America and E&C.

• Free cash flow from operations improved over 150% year-on-year to €438 million.

• Net debt stood at €1,268 million, with Net Debt/EBITDA at 1.4x, the best ratio in over a decade.

• CapEx reached €309 million, with over 80% allocated to growth and long-term contracts, mainly in Africa.

• Liquidity position above €1.2 billion, covering non-revolving financial installments for the next three years.

Outlook and guidance

• Confident in achieving €6 billion turnover by 2026, with continued focus on profitability, cash flow, and capital structure.

• CapEx over sales expected below 10% for the year; further asset rotation planned.

• Positive outlook for public infrastructure in Portugal, major projects in Africa, and nearshoring opportunities in Mexico.

• Cash flow generation and controlled debt remain priorities, with Net Debt/EBITDA targeted below 2x.

• Focus on core markets and exit from non-performing markets underway.