- Nominal net profit of EUR 86 million, -3% year on year (yoy) and like for like, +2% pre Abertis, notwithstanding Covid effects
- Sales in Q1 2021 of EUR 4.9 billion, yoy -12% (-9% fx-adjusted) vs. a high pre-Covid comparison level; robust operational margins
- Operational net profit of EUR 99 million; EUR 102 million pre-Abertis (+6% yoy)
- New orders up +31% yoy to EUR 5.9 billion; order backlog of EUR 47.6 billion, up 6% yoy
- Strong recovery in new orders driven by Asia Pacific and Americas, notwithstanding Covid
- Net cash from operating activities pre-factoring of EUR 675 million last twelve months (LTM) remains robust
- Free cash flow level pre-factoring stable yoy, despite lower revenue and Covid impact
- Net operating capex significantly lower at EUR 20 million after 50% Thiess divestment
- Net cash up EUR +141 million yoy, after EUR 722 million shareholder remuneration LTM
- Guidance for 2021 confirmed: operational net profit of EUR 410–460 million (+11% to 25% yoy like for like); improving trends in Group’s key markets
- Solid tender pipeline of more than EUR 620 billion in 2021 and beyond incl. PPP pipeline of EUR 180 billion and numerous stimulus packages
HOCHTIEF has started 2021 in a positive manner notwithstanding the impact of Covid. CEO Marcelino Fernández Verdes: “We have seen a strong recovery in new orders during the first quarter of the year. Looking forward, we are optimistic that this positive trend will continue, supported by the stimulus and infrastructure plans being put in place by governments in our key markets.”
In the first quarter of the year, the Group has delivered a nominal net profit of EUR 86 million. This compares with EUR 89 million in Q1 2020 on a like-for-like basis, adjusting for the divestment of 50% of Thiess. The remaining 50% holding is equity-method consolidated. The reported nominal net profit for Q1 2020 was EUR 115 million. Operational net profit of EUR 99 million rose year on year by 2% like for like (LFL) or 6% prior to the Abertis contribution. Margins remained firm across the Group’s divisions.
New orders increased significantly by over 30% year on year to EUR 5.9 billion compared with the EUR 4.5 billion secured in Q1 2020 whilst a disciplined bidding approach was maintained across all divisions. As a consequence, the Group’s order book remained robust at EUR 47.6 billion up 6% year on year.
Sales of EUR 4.9 billion were EUR 666 million lower year on year versus the comparable figure for Q1 2020 when Covid impacts were in their early phases. Net cash from operating activities pre-factoring remains robust on a last-twelve-months basis at EUR 675 million with the first-quarter variation reflecting lower sales level and seasonality.
Net operating capex shows a marked decrease compared with the level reported last year for Q1 2020 due to the deconsolidation of Thiess. On a LFL basis, net capex of EUR 20 million is also significantly lower versus the EUR 36 million in Q1 2020.
HOCHTIEF ended March 2021 with a net cash position of EUR 7 million—a EUR 141 million increase year on year. This is after EUR 722 million in shareholder remuneration in the preceding twelve months. The Group ended the quarter with a strong liquidity position of EUR 5.3 billion with an additional EUR 1.7 billion in undrawn credit facilities.
HOCHTIEF has launched a green/digital twin transition-strategy to further speed up the Group’s efforts on ESG (environmental, social and governance) priorities, leveraging digital technologies. “We are accelerating our ESG drive with a new 2021 to 2025 sustainability plan and are working on science-based carbon reduction targets in order to fully support the goals of the Paris Climate Agreement to stop global warming as highlighted at our AGM”, CEO Marcelino Fernández Verdes adds.
Looking forward, HOCHTIEF has identified a tender pipeline of relevant projects worth over EUR 620 billion for 2021 and beyond supported by EUR 180 billion in PPP projects in addition to the numerous stimulus packages approved by governments.
Group Outlook
HOCHTIEF expects to achieve an operational net profit in 2021 in the range of EUR 410 to 460 million, an increase of 11% to 25% year on year compared with the EUR 368 million of 2020 adjusted for the divestment of 50% of Thiess.
HOCHTIEF Group: Key Figures
(EUR million) |
|
2020 like for like | Q1 Change yoy like for like |
2020 reported | Q1 Change yoy reported | FY 2020 reported |
Sales | 4,934.4 | 5,600.8 | -11.9% | 6,155.5 | -19.8% | 22,953.8 |
Operational profit before tax/PBT | 157.6 | 151.8 | 3.8% | 215.7 | -26.9% | 802.3 |
Operational PBT margin | 3.2% | 2.7% | 0.5 | 3.5% | -0.3 | 3.5% |
Operational net profit | 99.2 | 97.7 | 1.5% | 123.7 | -19.8% | 476.7 |
Operational net profit pre-Abertis | 102.2 | 96.5 | 5.9% | 122.5 | -16.6% | 493.8 |
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EBITDA | 247.7 | 248.0 | -0.1% | 435.4 | -43.1% | 1,749.7 |
EBITDA margin | 5.0% | 4.4% | 0.6 | 7.1% | -2.1 | 7.6% |
Nominal profit before tax/PBT | 145.4 | 143.2 | 1.5% | 207.1 | -29.8% | 881.9 |
Nominal net profit | 86.0 | 88.9 | -3.3% | 114.9 | -25.2% | 427.2 |
Nominal net profit pre-Abertis | 89.0 | 87.7 | 1.5% | 113.7 | -21.7% | 444.3 |
Earnings per share (EUR) | 1.26 | 1.26 | 0.0% | 1.63 | -18.8% | 6.16 |
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Net cash from operating activities | (597.0) | (298.2) | (298.8) | (387.7) | (209.3) | 742.8 |
Net cash from op. activities pre factoring | (448.7) | (362.0) | (86.7) | (178.6) | (270.1) | 1,098.1 |
Net operating capital expenditure | 20.4 | 36.4 | (16.0) | (99.9) | 120.3 | 371.1 |
Free cash flow from operations pre-factoring | (469.1) | (398.5) | (70.6) | (278.5) | (190.6) | 727.0 |
Free cash flow from operations | (617.4) | (334.7) | (282.7) | (487.6) | (129.8) | 371.7 |
Free cash flow pre-factoring | (555.6) | (566.2) | 10.6 | (446.2) | (109.4) | 1,787.0 |
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Net cash/net debt | 6.8 | (134.3) | 141.1 | (134.3) | 141.1 | 617.9 |
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New orders | 5,907.9 | 4,512.7 | 30.9% | 4,519.0 | 30.7% | 23,069.9 |
Order backlog | 47,610.7 | 44,991.6 | 5.8% | 47,577.3 | 0.1% | 45,840.4 |
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Employees(end of period) | 33,501 | 51,980 | -35.6% | 51,980 | -35.6% | 46,644 |
Note: Operational profits are adjusted for non-operational effects