Obrascón Huarte Lain (OHLA) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €1.69 billion, with EBITDA of €84.1 million, up 46.3% year-over-year and a 5% margin, mainly driven by the Construction division, while Industrial sales dropped 53.3%.

• Attributable net loss was €29.7 million, impacted by non-recurring financial expenses and FX losses from recapitalisation and international operations.

• New contracts totaled €2.218 billion, book-to-bill ratio was 1.3, and order backlog reached €8.628 billion, up 2% from year-end 2024.

• 73.9% of revenue was generated abroad, with strategic divestment of the Services business classified as a discontinued operation.

• Results align with 2025 guidance, supporting confidence in the operational roadmap.

Financial highlights

• EBITDA rose 46.3% to €84.1 million, EBIT improved to €46.2 million, and net loss narrowed to €29.7 million.

• Cash position at €663 million, stable year-over-year; total liquidity €663.2 million.

• Leverage ratio reduced to 1.8x (recourse), down from 3.0x at Dec 2024 and over 11 four years ago.

• Book-to-bill ratio at 1.3; order backlog covers 25 months of sales.

• Share price at end-June: €0.3005, down 25.5% YTD; market cap: €415.7 million.

Outlook and guidance

• Confident in achieving full-year EBITDA guidance of €175 million, including the services division.

• Construction margins and order book expected to remain strong; Industrial division margins and backlog anticipated to improve in H2 2025.

• Strategic cost reduction plan targets €40 million in annual savings, aiming to lower cost-to-sales ratio below 3%.