Sacyr (SCYR) H1 2024 earnings summary

Executive summary

• Operating cash flow rose 59% year-over-year to €574 million in H1 2024, with EBITDA up 4.5% to €657 million and a margin of 31%.

• Net profit increased 2.4% year-over-year to €52 million, while revenues reached €2,119 million, reflecting a strategic focus on concessions and international diversification.

• Over 90% of EBITDA is generated from concession assets, now valued at over €3.55 billion, supporting recurring, predictable cash generation.

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

• Eight new contracts were won and 11 projects commissioned since 2022, with a diversified portfolio of 70+ assets and €22 billion under management.

Financial highlights

• Revenue for H1 2024 was €2,119 million, down 2% year-over-year; EBITDA rose 4.5% to €657 million, with a margin of 31%.

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

• Cash flow/EBITDA conversion improved to 87% from 57% in H1 2023.

• Net operating profit (EBIT) rose 6.6% to €600 million.

• Net debt increased to €6,653 million, mainly due to investments in concession projects, with recourse net debt reduced by €126 million.

Outlook and guidance

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

• Net profit is expected to reach €265 million in 2027 (+73% vs 2023), with a new cash distribution policy starting 2025.

• Proceeds from a €222 million capital increase will fund investment needs through 2027 and support the goal of achieving an investment-grade rating.

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

• The next scrip dividend is planned for September 2024.