Menu DEDeutschENEnglish Search

Essen,

HOCHTIEF increases 9M 2024 operational net profit by 12% to EUR 450 million // Sustained strong new order growth of 15% // Guidance reiterated

Download PDF
  • Operational net profit up 12% to EUR 450 million, or +18% on a comparable basis
    • Solid sales growth of 7% year on year driven mainly by Turner
    • Nominal net profit of EUR 579 million, +61% on a comparable basis, driven by strong operational profit growth and a EUR 147 million net one-off, non-cash gain at CIMIC (in Q2)
  • Strong operating cash flow of EUR 1.8 billion last twelve months (LTM), up EUR 432 million year on year; sustained high cash conversion
  • Strong new orders growth sustained with EUR 32.1 billion, up 15% year on year 
    • Strategic focus on growth markets (approx. 50% of new orders) and vast majority with lower risk profile
    • Record order backlog of EUR 66 billion, up 18%
  • FY 2024 guidance reiterated: operational net profit of EUR 560–610 million (up to +10% year on year)
    • Positioned to further expand presence in strategic growth markets

HOCHTIEF has delivered a solid performance during the first nine months of 2024 marked by a solid increase in profits, sales and net operating cash flow. This growth is further supported by the continued strong expansion of the order book driven by a further significant rise in new orders. Furthermore, the Group has made important progress in its strategic development with several important transactions. “The future of the infrastructure sector is being driven by digitalization, demographics, decarbonization and deglobalization. The Group has positioned itself as a leading infrastructure and services provider and is well on track to meet the rising demand driven by these megatrends”, says CEO Juan Santamaría.

Group sales of EUR 23.6 billion show a 7% increase year on year driven mainly by our U.S.-based business Turner. HOCHTIEF’s operational net profit rose 12% to EUR 450 million or 18% on a comparable basis. The nominal net profit of EUR 579 million, up 61% year on year on a comparable basis, was mainly driven by the strong operational profit growth and a EUR 147 million one-off, non-cash gain, net of provisions in the second quarter at our Australia-based business CIMIC.

Looking at the last twelve months, operating cash flow stands at a strong level of around EUR 1.8 billion, up EUR 432 million and reflecting a high level of cash conversion. The cash flow performance for the nine-month period includes the characteristic seasonal movement seen during the first quarter of the year. HOCHTIEF ended the period with a net debt position of EUR 1.66 billion driven by strategic capital allocation decisions taken during the period as well as seasonality. Adjusting for the full consolidation of Thiess, the Abertis capital increase, bolt-on M&A, f/x effects and the HOCHTIEF dividend, net cash would stand at EUR 790 million. For the fourth quarter HOCHTIEF expects a strong operating cash flow performance.

The strong growth trend in our orders has continued during the first nine months of the year. New orders rose 15% year on year to EUR 32.1 billion. These new orders include several important advanced-tech (particularly in the fast growing data center market), energy transition and sustainable infrastructure projects, with strategic growth markets accounting for around 50% of the Group’s total new orders. In addition, HOCHTIEF continues to perform strongly in the civil works and building markets where we have a leading presence stretching back several decades. As a consequence, the Group’s order backlog ended September 2024 at a record level of EUR 66 billion, up 18% year on year.

Group Outlook
HOCHTIEF is well positioned for the future based on its solid, long-standing local positions in its key developed markets, its geographical and currency diversification and a significantly derisked and expanding order book. The guidance for 2024 is to achieve an operational net profit of between EUR 560 and 610 million which represents an increase of up to 10% compared with last year subject to market conditions.


HOCHTIEF Group: Key Figures
9-month figures

(EUR million)


9M 
2023

reported


9M 
2023

comp.


9M

2024

9M

Change year on year


FY 
2023

Sales

20,362

21,949

23,577

7.4%

27,756

Operational profit before tax/PBT

572

630

714

13.4%

774

Operational PBT margin

2.8%

2.9%

3.0%

20 bps

2.8%

Operational net profit

403

382

450

17.7%

553

Operational earnings per share (EUR)

5.36

5.08

5.98

17.7%

7.35

 

 

 

 

 

 

EBITDA

908

1,232

1,305

5.9%

1.230

EBITDA margin

4.5%

5.6%

5.5%

-10 bps

4.4%

EBIT

682

794

895

12.6%

910

EBIT margin

3.3%

3.6%

3.8%

20 bps

3.3%

Nominal profit before tax/PBT

536

594

712

19.8%

715

Nominal net profit

381

360

579

60.7%

523

Nominal earnings per share (EUR)

5.06

4.79

7.70

60.8%

6.95

    

 

 

Operating cash flow (OCF) LTM

1,358

 

1,791

432

1,519

Net operating cash flow LTM

981

 

1,282

301

1,162

Operating cash flow (OCF) 

216

491

488

(3)

1.519

Net operating capital expenditure and leases

(279)

(498)

(431)

67

(357)

Net operating cash flow 

(63)

(7)

57

64

1,162

 

 

 

 

 

 

Net cash/net debt

(68)

(1,109)

(1,657)

(548)

872

 

 

 

 

 

 

New orders

27,844

28,501

32,065

12.5%

36,677

Order backlog 

56,072

59,797

65,952

10.3%

55,325

 

 

 

 

 

 

Employees (end of period)

41,058

41,058

44,675

8.8%

41,575

Note: Operational PBT and net profit have been adjusted for non-operational factors.
Comparable 9M 2023 earnings figures adjust for the EUR 21 million contribution of Ventia, which was sold in 2023, and apply full consolidation of Thiess for May and June. Minority interest has been calculated on a 50% ownership basis.
Cash flow is underlying, i.e. excl. one-off payments for CCPP in 9M 2023 (EUR 184 million). 9M 2023 comparable cash flow figures additionally exclude the Ventia dividend received (EUR 14 million) and reflect the full consolidation of Thiess in the last five months of 9M 2023, consistent with the treatment in 9M 2024.


Quarterly figures

(EUR million)


Q3 
2023

reported


Q3 
2023

comp.


Q3

2024

Q3

Change year on year


FY 
2023

Sales

7,346

8,247

8,925

8.2%

27,756

Operational profit before tax/PBT

180

220

272

23.6%

774

Operational net profit

133

127

149

17.8%

553

 

 

 

 

 

 

EBITDA

309

509

478

-6.1%

1,230

EBIT

227

301

293

-2.5%

910

Nominal profit before tax/PBT

164

205

225

10.0%

715

Nominal net profit

119

113

143

26.6%

523

    

 

 

Operating cash flow (OCF)underlying

74

266

180

(87)

1,519

Net operating capital expenditure and leases

(96)

(232)

(205)

27

(357)

Net operating cash flow underlying 

(22)

34

(25)

(60)

1,162

 

 

 

 

 

 

New orders

9,767

9,861

10,755

9.1%

36,677

Order backlog 

56,072

59,797

65,952

10.3%

55,325

Note: Operational PBT and net profit have been adjusted for non-operational factors.
Comparable 9M 2023 earnings figures adjust for the EUR 21 million contribution of Ventia, which was sold in 2023, and apply full consolidation of Thiess for May and June. Minority interest has been calculated on a 50% ownership basis.
Cash flow is underlying, i.e. excl. one-off payments for CCPP in 9M 2023 (EUR 184 million). 9M 2023 comparable cash flow figures additionally exclude the Ventia dividend received (EUR 14 million) and reflect the full consolidation of Thiess in the last five months of 9M 2023, consistent with the treatment in 9M 2024.