Orascom Construction (ORAS) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose 10.6% YoY to $847.6M and EBITDA increased 43.1% to $54.1M; net profit attributable to shareholders fell 45.6% to $25.1M.

• Consolidated backlog reached $8.7B, up 20.1% YoY; pro forma backlog including 50% of BESIX was $13.0B.

• Q1 new awards totaled $1.64B, up 169.1% YoY; pro forma awards including 50% of BESIX were $1.96B, up 119.2%.

Financial highlights

• Revenue was $847.6M versus $766.3M; EBITDA was $54.1M versus $37.8M, lifting margin to 6.4% from 4.9%.

• Net profit attributable to shareholders was $25.1M versus $46.1M; Q1 2024 included an above-average financing gain tied to the Egyptian pound devaluation. Excluding that impact, net income increased YoY.

• Net profit was $27.1M versus $49.8M; profit before tax was $34.2M versus $71.4M.

• Pro forma EBITDA, including 50% of BESIX, rose 42.4% YoY to $69.5M.

Outlook and guidance

• Full-year 2025 targets remained intact; EBITDA margin guidance was 7% overall and ~3% for the U.S., with Q1 construction margins exceeding standalone 7% guidance.

• U.S. revenue is expected to increase with new awards during 2025; targeted sectors include data centers, aviation and advanced manufacturing.

• The remaining 150 MW of the expanded Egypt wind farm is scheduled for completion by Q3 2025; 500 MW began commercial operations in April, six months early.

• Management expects good operating cash flow for 2025; BESIX is expected to contribute €40M–€50M to 2025 gross consolidated bottom line.