EUR 100.00 For Business Accounts Only

ACS: HOCHTIEF’S 9M’22 RESULTS BEAT EXPECTATIONS, THOUGH WITH SLIGHTLY WEAK ORDER INTAKE (ANÁLISIS BANCO SABADELL)

Hochtief (70% ACS; ~67% of ACS’s EBITDA; 40% of our T.P.) has just released its 9M’22 results that beat expectations in sales (+3% vs. BS(e) and +4% vs. consensus) and were slightly above in EBITDA (+2% vs. BS(e)). This means some deterioration on the EBITDA margin level (-49bps vs. 9M’21 and -42bps vs. BS(e); 4.5% vs. 5.0% in 9M’21) despite the improved contribution from Abertis (€ 53 M in EBITDA vs. € 43 M in 9M’21), due especially to a slight margin erosion in the Americas and Asia Pacific, although this was expected. On the adjusted Net Profit level, the results are very much in line, totaling € 381 M (€ 370 M BS(e) and € 378 M consensus). Net debt came in at € 226 M (€ -556 M of net cash as of YE’21) due to the slightly worse performance of prefactoring FCF vs. 9M’21 (€ 14 M vs. € 39 M in 9M’21) due to greater CAPEX, as pre-investments the performance would have been better (€ 122 M vs. € 79 M in 9M’21). Furthermore, we would have to subtract the € -940 M from the TOB on CIMIC, € -238 M from the CCPP arbitration and the liquidation of a project in Chile (around € -100 M we had not identified) and add € 406 M from the capital increase, among others.