Tecnicas Reunidas (TRE) Q3 2024 earnings summary

Executive summary

• Order intake reached €4.1 billion for the first nine months of 2024, driving a record backlog of €12.4 billion, supported by major contracts in the US, Saudi Arabia, Kazakhstan, and the Middle East power sector.

• Revenue for the first nine months totaled €3.2 billion, nearing annual targets, with EBIT at €131 million (4.1% margin), and net profit up 58% year-over-year to €65 million.

• Net cash position improved to €298 million, maintaining financial stability and up from €234 million a year ago.

• Strategic focus on risk mitigation, project delivery, and expanding engineering and service contracts, especially in low-carbon and ammonia projects.

• Workforce expanded significantly, with Top Employer 2024 certification supporting talent attraction and retention.

Financial highlights

• Q3 2024 revenue was €1.1 billion, with EBIT of €47 million (4.2% margin).

• EBIT for the nine-month period grew 10% year-over-year; net profit increased 58% compared to the same period last year.

• Net cash rose 23% and equity increased 19% year-over-year; gross debt reduced from €769 million to €652 million.

• Sales guidance for 2024 reaffirmed at €4.5 billion with a targeted EBIT margin of 4%.

• Leverage ratio decreased to 1.72 from 2.19 at year-end 2023.

Outlook and guidance

• Management expressed optimism, citing strong market demand, customer trust, and a proven strategy, with positive trends expected to continue.

• Margins are expected to improve gradually, with a target of 5% by end of 2025.

• Commercial pipeline remains robust, especially in Europe, the Middle East, and the U.S., with a focus on petrochemicals, gas, and low-carbon technologies.

• 2024 revenue guidance set at €4.5 billion and EBIT margin at 4%.