Orascom Construction (ORAS) H2 2024 earnings summary

Executive summary

• FY 2024 revenue was $3,254.9M, down 3.3% YoY; adjusted EBITDA rose 13.3% to $158.3M and adjusted net income to shareholders increased 0.4% to $117.3M.

• Consolidated backlog was $7.6B; pro forma backlog including 50% of BESIX was $11.9B. Management emphasized selective awards, diversification and concessions, and was bullish on 2025.

Financial highlights

• Q4 revenue fell 6.7% YoY to $935.0M; reported EBITDA declined 20.1% to $38.9M, including $20.0M of one-off MEA expenses.

• Excluding Q4 one-offs, EBITDA was $58.9M, up 20.9% YoY; Q4 net income attributable to shareholders was $31M, down 29.2%.

• FY gross profit was $302.9M, with 9.3% margin versus 8.0%; operating profit was $120.1M and reported net profit was $133.8M.

• Adjusted net income was $117.3M, up 0.4%; investments and subsidiaries in building materials, equipment services, facility management and concessions contributed 28% of net income.

• BESIX contributed $22.6M to FY net income versus $11.2M in FY 2023; Q4 contribution was $9.3M versus $3.8M.

Outlook and guidance

• FY 2025 EBITDA margin guidance is 5%; U.S. margin is expected near 3%, similar to FY 2024, and MEA margin around 7%.

• MEA EBITDA and profit are targeted to improve 10%–15%, supported by selective pricing and limited availability of reliable regional contractors.

• U.S. margins are expected to remain in line with FY 2024; specialized self-performed electrical work supports data-center projects, with activity expected to accelerate in H1 2025.

• Remaining wind capacity is expected to be added to Egypt’s grid by Q3 2025; the expanded project is expected to bring operational wind capacity to 912.5 MW. WAVE EPC targets commercial operation by June 2026.

• Existing concessions are on track for a 2027 target of 15% total contribution; Ras El Hekma work is expected to add backlog and revenue in Q1–Q2 2025.