Sacyr (SCYR) H1 2024 earnings summary

Executive summary

• Operating cash flow rose 59–60% year-over-year to €574M, with EBITDA up 4.5% to €657M and a 31% margin, driven by new concessions and a diversified portfolio across 12 countries.

• Over 90% of EBITDA is generated from concession assets, valued at €3.6B, with a focus on recurring, predictable cash generation and prudent risk management.

• Net attributable profit increased 2.4% year-over-year to €52M, despite a 2% revenue decline to €2.12B.

• Strategic plan targets 60% growth in operating cash flow and 6% EBITDA growth by 2027, with net profit expected to rise 73% from 2023.

• Sacyr expects €16.1Bn in cash distributions from its portfolio through 2053, supporting future growth and shareholder returns.

Financial highlights

• Revenue for 1H 2024 was €2,119M, down 2–2.1% year-over-year; EBITDA rose 4.5% to €657M, with a margin of 31%.

• Net profit reached €52M, up 2.4% year-over-year; operating cash flow surged 59–60% to €574M.

• Cash flow/EBITDA conversion factor improved to 87% from 57% in 1H 2023.

• Capital increase in May raised €222M via 67.5 million new shares, five times oversubscribed.

• Net debt increased to €6,653M, mainly project finance, with recourse net debt reduced by €126M.

Outlook and guidance

• Strategic plan aims for €1,350M operating cash flow and €1,610M EBITDA by 2027, with minimum €225M annual cash remuneration.

• Net profit is expected to reach €265M in 2027 (+73% vs 2023); concession asset valuation projected to reach €5.1B by 2027 and €9–10B by 2033.

• Water division EBITDA margin expected to remain at 20–21% for the year.

• Portfolio's debt service coverage ratio expected to improve, enabling additional leverage for growth.

• Focus on financial discipline, investment grade rating, and maximum 1x recourse net debt/EBITDA.