Q2 2024 Hochtief AG Earnings Call Transcript
Key Points
- Hochtief AG (HOCFF) reported a 7% year-on-year increase in group sales, reaching EUR14.6 billion.
- Operational net profit rose by 11% to EUR301 million, or 18% on a comparable basis.
- The company's order backlog reached a record level of close to EUR66 billion, up 23% year-on-year.
- Hochtief AG (HOCFF) announced the acquisition of Dornan Engineering, which is expected to significantly boost its European market presence.
- Strong cash flow performance with operating cash flow standing at EUR1.7 billion over the last 12 months.
- Net debt increased to EUR1.1 billion, driven by seasonality and strategic capital allocation decisions.
- Factoring volume increased by EUR205 million year-on-year, indicating reliance on external financing.
- Despite strong first-half performance, the company chose not to update its full-year guidance, indicating potential caution or uncertainty.
- The integration of recent acquisitions, such as Dornan Engineering, may pose operational and cultural challenges.
- The company faces competitive pressures in the advanced technology and data center markets, which could impact future margins.
Good afternoon, everyone, and thank you for joining this HOCHTIEF first half 2024 results call. I'm Mike Pinkney, Head of Corporate Strategy, and I'm here with our CEO, Juan SantamarÃa; our CFO, Peter Sassenfeld; and our Head of Capital Markets, Tobias Loskamp; and other colleagues from the senior management team here at HOCHTIEF.
We're looking forward to taking your questions, of course, but to kick off, our CEO is going to run us through the details of this strong set of numbers as well as the important strategic acquisition that we've just announced. Juan, all yours.
Thank you, Mike and team. Good afternoon to everyone and thanks for joining us. HOCHTIEF has delivered a solid performance during the first half of 2024, with higher sales and profits, supported by firm cash flow generation.
This has been accompanied by a continued expansion of its order book driven by a further substantial rise in new
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