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.

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

• 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.

• Record shareholder remuneration in 2024, with two scrip dividends and a €222 million capital increase, both oversubscribed, and 92% of investors opting for shares.

• Progress on Voreantis, a new company to consolidate operational concessions, targeting a Q1 2025 IPO and seeking a minority partner.

Financial highlights

• Operating cash flow rose 65% year-over-year to €805 million; EBITDA to cash flow conversion ratio reached 85%, up from 50% in 2023.

• Revenue: €3,262 million (+1%); EBITDA: €948 million (-2%); EBIT: €870 million (+5%); Net profit: €74 million (+1%).

• Net debt increased by €191 million to €6,599 million, with 97% project finance and 79% fixed-rate exposure.

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

• Equity increased by €175 million to €1,926 million as of September 2024.

Outlook and guidance

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

• At least €225 million in cash shareholder remuneration planned for 2025-2027.

• Capital increase of €222 million in May 2024 to fund investments through 2027 and support investment grade rating goal.

• Guidance for construction margins near 5% and activity of €2.2 billion.

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