Mota-Engil (EGL) H1 2025 earnings summary

Executive summary

• Achieved record first half net profit of €59mn, up 20% YoY, and turnover of €2,745mn, up 0.5% YoY, with EBITDA at €448mn (+13% YoY, 16% margin), driven by strong growth in Africa and the Environment segment, while Latin America experienced a planned slowdown post-major project completions.

• Backlog reached €14.7bn, providing 2.7 years of turnover visibility, with an additional €1.36bn in awards post-June 2025 and higher profitability and quality.

• Net debt reduced by €37mn YTD to €1,695mn, with Net Debt/EBITDA at 1.68x and Gross Debt/EBITDA at 2.95x, both below strategic targets.

• Strategic focus on profitability, cash flow generation, and disciplined investment, with a new strategic plan for 2026-2030 to be announced in early 2026.

• Major new contracts and financing agreements signed, including high-speed rail in Portugal, oil & gas services in Brazil, and significant sustainability-linked loans.

Financial highlights

• Turnover: €2,745mn (+0.5% YoY); EBITDA: €448mn (+13% YoY, 16% margin); Net profit: €59mn (+20% YoY, 2.2% margin).

• Capex: €194mn (-37% YoY), with 80% allocated to E&C growth and long-term contracts.

• Cash flow from operations: €536mn (+€98mn YoY).

• Equity: €776mn (Equity/Assets 10%).

• Liquidity: €895mn, with all short-term obligations fully secured and average debt maturity extended to 2.8 years.

Outlook and guidance

• 2025 guidance: Stable turnover, EBITDA margin around 16%, capex at ~7% of turnover, focus on free cash flow, and maintaining Net Debt/EBITDA <2x.

• Backlog and recent awards secure strong revenue outlook for 2026 and beyond.

• Equity-to-assets ratio goal set above 15% by end-2026, driven by improved profitability and asset management.

• New strategic plan to be announced in early 2026, focusing on profitability and balance sheet strength.

• Capex to remain around 7% of turnover, supporting free cash flow and debt profile improvements.