Hochtief Aktiengesellschaft Stock Earnings Reports

HOCHTIEF reported a strong first 9 months of 2025 with broad-based revenue and order growth, improved margins and robust cash generation. Group sales rose ~24% FX-adjusted to EUR 28.1bn and operational net profit increased ~19% to EUR 537m (26% FX-adjusted). The company raised its full-year 2025 operational net profit guidance to EUR 750m–780m, driven largely by Turner's significant outperformance. Turner delivered standout results: sales +38% to EUR 18.8bn, operational PBT up ~60% to EUR 629m and a margin of ~3.4% in the first 9 months (management expects Q4 ~3.7% and continued margin expansion). New orders were EUR 36.6bn (+19% FX-adjusted) and the order book at end-September was EUR 70bn (+12% FX-adjusted), with >85% lower-risk backlog. Segment outlooks: Turner now expected to deliver operational PBT EUR 850m–900m (2025); CIMIC steady with expected operational PBT ~EUR 480m–510m; Engineering & Construction and Abertis reported solid results and backlog growth. Strategic priorities center on digital/advanced tech (data centers, semiconductors), energy transition (transmission, BESS, nuclear/SMRs), critical minerals (Sedgman, Thiess) and defense infrastructure. HOCHTIEF is pursuing bolt-on M&A and targeted capital investments (e.g., Dornan, FlatironDragados stake, Abertis injection), investing in edge data centers (YEXIO) and scaling group-wide capabilities (shared procurement, modularization, AI adoption). Cash conversion is strong (last-12-month operating cash flow ~EUR 2.1bn) though net debt movements reflect strategic investments and seasonality. Management highlights scalability, derisked orderbook, geographic diversification and capability to capture multi-year demand driven by digitalization, energy security and defense. Key investor considerations: upgraded guidance and Turner's momentum, continued data center and advanced-tech exposure (large U.S. backlog plus Europe/APAC growth potential), disciplined capital allocation toward high-return growth areas, and FX/seasonality and execution risk as usual in construction/engineering businesses.