Sacyr (SCYR) Q4 2024 earnings summary

Executive summary

• Operating cash flow rose 53% year-over-year to €1,294M, nearly matching EBITDA, with 96% EBITDA-to-cash conversion and over 91% of EBITDA from concession assets.

• Net profit increased 7.2% to €113M, excluding discontinued activities and divestments.

• Five new concession projects/contracts were awarded in 2024, surpassing strategic targets and boosting backlog.

• Record shareholder remuneration of €0.141 per share, 72% higher than in 2020, with a new cash dividend policy set for 2025.

• Enhanced governance with separation of Chairman and CEO roles, and improved sustainability ratings from MSCI, Sustainalytics, and S&P Global.

Financial highlights

• Revenue reached €4,571M, down 0.8% year-over-year; EBITDA at €1,352M (down 10%), with a 30% margin; EBIT at €1,225M.

• Operating cash flow/EBITDA conversion rate at 96%, up from 56% in 2023.

• Recourse net debt reduced by 46% to €146M, with a leverage ratio of 0.4x.

• Total net debt stands at €6,891M, mainly project finance, with 98% project finance and 76% fixed-rate.

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

Outlook and guidance

• Strategic Plan targets €1.35B operating cash flow and €1.6B EBITDA by 2027, with at least €225M in cash dividends planned for 2025-2027.

• Recourse net debt ratio to remain below 1x, with €225M in concessional distributions for 2024.

• Growth focused on larger concession projects in key international markets (US, Chile, Italy, Australia).

• Capital increase of €222M in May 2024 to support investments through 2027.

• Strategic focus on achieving investment grade rating and further asset rotation via Voreantis.