Orascom Construction (ORAS) H1 2024 earnings summary

Executive summary

• H1 revenue declined 5.5% YoY to $1,477.4m, while adjusted EBITDA rose 29.4% to $74.8m and adjusted net income attributable to shareholders rose 13.7% to $64.7m.

• Consolidated backlog excluding BESIX reached $7.7bn, up 39.7% YoY; pro forma backlog including 50% of BESIX was $11.4bn.

Financial highlights

• Q2 revenue fell 6.3% YoY to $711.1m; excluding currency devaluation, revenue would have grown 4.4% YoY.

• Adjusted EBITDA rose 65.2% YoY to $37.0m in Q2; adjusted net income attributable to shareholders fell 10.7% to $18.6m.

• H1 operating profit was $53.8m versus $135.7m, and net profit was $70.7m versus $132.9m in H1 2023.

• Adjusted H1 EBITDA excludes $7.5m of Q1 one-off expenses and a $0.7m Q2 divestment gain; adjusted H1 2023 EBITDA excludes a $92.9m net gain.

Outlook and guidance

• Egypt revenue is expected to increase in H2 2024 as large infrastructure projects ramp up; execution is expected to peak in H1 2025.

• Focus remains on backlog execution and bottom-line improvement; U.S. growth is expected to continue with disciplined risk management.

• H1 CapEx was $30m; H2 is expected to be similar or slightly lower, with similar funding anticipated in 2025.