HOCHTIEF triumphs with a mega jump in profits and new orders!

HOCHTIEF triumphs with a mega jump in profits and new orders!

HOCHTIEF impressed with a significant increase in profits in the first quarter of 2025 compared to the previous year. The group generated an adjusted consolidated profit of 166.8 million euros, which corresponds to an increase of 17.3 percent. Including special effects, the profit was 307.8 million euros, which is over 130 percent more than in the previous year. This positive development is primarily attributed to the Flatiron transaction, which resulted from the merger of Dragados North America and Flatiron. HOCHTIEF holds 38.2 percent of the shares in this new company, which is now the second largest civil engineering and construction company in the USA.

The main contributions to profits came from the US subsidiary Turner and the Australian subsidiary Cimic, while the investment in the Spanish highway operator Abertis Infraestructuras, in which HOCHTIEF holds around 20 percent, performed less well. Nevertheless, the company confirmed its profit target for the full year, which is between 680 and 730 million euros for adjusted net profit. In the previous year, the adjusted profit was 625 million euros, an increase of 13 percent.

Strong order backlog and increase in sales

HOCHTIEF recorded impressive quarterly sales of over 8.9 billion euros in the first quarter, an increase of almost a third compared to the previous year. This increase in sales is mainly due to the good business of the foreign subsidiaries and the takeover of the engineering company Dornan. What is particularly noteworthy is that the Australian subsidiary Thiess has now been fully included in HOCHTIEF's balance sheet since May 2024.

The order backlog rose by almost 20 percent year-on-year to over 70 billion euros by the end of March. The US subsidiary Turner also secured new data center orders worth over $3 billion. Company boss Juan Santamaría Cases sees great growth opportunities both internationally and in the home market of Germany and evaluates the new federal government's planned infrastructure fund of 500 billion euros as an opportunity to modernize the infrastructure.

Stock performance and market reaction

The positive business development is also reflected in the share performance. The stock rose about 2.6 percent in afternoon trading and has gained almost a quarter since the beginning of the year. Investors are optimistic about further developments at HOCHTIEF and the associated growth opportunities.

In summary, HOCHTIEF started the new year with a strong jump in profits and the fundamentals continue to appear solid. The coming months will show how effectively the company can exploit the growth opportunities presented by new orders and infrastructure projects.

For further information and details on current developments at HOCHTIEF, please click on the articles from finanzen.at and boersennews.de.