Sacyr (SCYR) Q4 2024 earnings summary

Executive summary

• Achieved significant progress on the 2024-2027 Strategic Plan, with operating cash flow up 53% to €1,294 million and recourse net debt ratio reduced to 0.4x, well below the 1x target.

• Secured five new concession projects in 2024, surpassing annual targets and boosting backlog to over €10 billion, with 71% linked to concessions.

• Record shareholder remuneration, up 72% since 2020, reaching €0.141 per share in 2024, with a new cash dividend policy set for 2025.

• Enhanced corporate governance by separating Chairman and CEO roles, with Pedro Sigüenza to be appointed CEO after AGM 2025.

• Improved sustainability ratings, including upgrades from MSCI, Sustainalytics, S&P Global, and CDP A List 2024.

Financial highlights

• Revenue for 2024 was €4,571 million, down 0.8% year-over-year; EBITDA at €1,352 million, down 10.1%; EBIT at €1,225 million, down 0.5%.

• Net profit increased by 7.2% to €113 million, excluding discontinued activities.

• Operating cash flow rose 53% year-over-year to €1,294 million, with a 96% EBITDA-to-cash flow conversion ratio.

• Recourse net debt reduced by €123 million to €146 million, a 32% reduction; total net debt stands at €6,891 million, with 98% project finance and 76% fixed-rate.

• Shareholder remuneration grew 72% since 2020, reaching €0.141 per share in 2024.

Outlook and guidance

• Strategic Plan targets on track: recourse net debt ratio below 1x, €225 million in concessional distributions for 2024, and €300 million equity planned for growth through 2027.

• At least €225 million earmarked for shareholder remuneration in cash over the next three years, with the first cash dividend in 2025.

• Projected total distributions from current portfolio of €17 billion through 2053, averaging 17% of market capitalization annually.

• Revenue diversification target: one-third each from English-speaking countries, Europe, and Latin America.

• Potential for increased targets if current goals are met ahead of schedule.