Sacyr (SCYR) Q3 2024 earnings summary

Executive summary

• Operating cash flow increased 65% year-over-year to €805 million, with an 85% EBITDA to cash conversion ratio, reflecting strong cash generation and financial discipline.

• Revenue grew 1% year-over-year to €3,262 million, while EBITDA declined 2% to €948 million; EBIT rose 5% to €870 million and net profit was up 1% to €74 million.

• Four new concessions or P3 contracts were awarded in 2024, including major projects in Italy, Chile, Peru, Colombia, and the US, expanding the project backlog to a record €10 billion, with 67% in concessions.

• Strategic focus on water division and international expansion, with notable awards and operational milestones in Spain, Australia, Chile, Saudi Arabia, Uruguay, and Colombia.

• Record shareholder remuneration in 2024, with €0.141 per share paid (72% higher than 2020), 92% of shareholders opting for shares, and a €222 million capital increase oversubscribed five times.

Financial highlights

• Operating cash flow: €805 million (+65%); EBITDA: €948 million (-2%); EBIT: €870 million (+5%); Net profit: €74 million (+1%).

• EBITDA to cash flow conversion ratio reached 85%, up from 50% in 2023.

• Net debt at €6.6 billion, with €6.38 billion project finance and €215 million recourse net debt; net investment in 2024 reached €577 million.

• Scrip dividends in 2024 yielded a 5% return for shareholders, 72% higher than 2020.

• Revenue remained stable, with operating margins above 29%.

Outlook and guidance

• Strategic plan targets at least three to four new concessions annually, with continued growth in operating cash flow and backlog.

• By 2027, operating cash flow is expected to reach €1.35 billion (+60% vs. 2023), EBITDA €1.61 billion (+6%), and net profit €265 million (+73%).

• Minimum €225 million cash dividend planned for 2024–2027, with a new cash distribution policy starting in 2025.

• Asset portfolio valuation projected to reach €5.1 billion by 2027 and €9–10 billion by 2033.

• Net recourse debt and related ratios expected to remain below 1, in line with the strategic plan.