Mota-Engil (EGL) H2 2025 earnings summary

Executive summary

• Achieved record EBITDA of €979 million (18% margin, up 4% YoY) and record net profit of €133 million (+9% YoY), despite an 11% turnover decrease due to project delays in Mexico and Portugal, with disciplined capital allocation and strong cash flow generation.

• Backlog reached a record €16.2 billion (+4% YTD), providing three years of E&C visibility and supporting medium- to long-term growth, with €4.5 billion in new awards in H2 2025.

• Equity grew organically by over €100 million to €983 million (12% equity/assets ratio).

• Strategic focus on core markets, large-scale contracts, and high-margin segments, with significant new project awards in Portugal, Mexico, Brazil, and Africa.

• ESG credentials improved, earning market recognition and awards for sustainability and workplace excellence.

Financial highlights

• Turnover was €5.3 billion, down 11% YoY, mainly due to project delays in Portugal and Mexico and the divestment of Polish operations.

• EBITDA reached €979 million (18% margin), a 12% YoY increase in EBIT, and net profit rose 9% to €133 million.

• Operating cash flow increased 27% YoY to €924 million, supporting positive free cash flow and dividend distribution.

• CapEx totaled €396 million (7% of revenue), a 22% reduction YoY, with 64% allocated to higher-return projects.

• Net debt/EBITDA at 1.98x, gross debt/EBITDA at 3.50x, and average cost of debt reduced by 60 basis points to 7.1%.

Outlook and guidance

• Double-digit revenue growth (10–15%) expected in 2026, recovering from 2025's turnover decrease.

• EBITDA margin to remain at or above 18%, with net margin stable at 2025 levels (around 3%).

• CapEx to be maintained around 7% of turnover; €200 million planned for concession investments.

• Continued focus on selective project acquisition, cash generation, and disciplined capital allocation, including asset rotation and concession portfolio management.