Bankinter analysis
Técnicas Reunidas has reported positive H1 2026 results: Order Book €13,938m (up 7% year-on-year); Revenue €3,061m (up 12%); Underlying EBIT (excluding the provision of -€45m) €149m (up 24%);
The EBIT margin stands at 4.4 per cent; net profit after tax €59 million; net cash flow: €344 million against €422 million in Q2 2025.
In Q1 2026, the company made a provision of €45m for costs related to the war in the Middle East. Although hostilities continued during Q2 2026 and there was high volatility in oil prices, the company considers that no further provisions are necessary, which is positive news. Consequently, the order book and revenue have increased. Profits remain stable.
We maintain our Buy recommendation because:
1.- No projects have been cancelled despite the war. In 2026, it estimates that, on an adjusted basis, excluding the effect of the provision: Revenue > €6,500M; EBIT > €325M and EBIT margin > 5%.
2.- High volume of activity, which is reflected in its order book. It expects to exceed €8,000M in new contracts this year. This level ensures a volume of revenue linked to the execution of these contracts. It has access to a large volume of projects. A large proportion of these are in the Middle East, a region where strong growth is expected in the coming years. However, it also identifies other regions such as Latin America and the United States.
3.- A healthy balance sheet, with a net cash position which, although moderating, remains high, which is important for securing new contracts. We estimate that debt will be gradually reduced over the coming years, whilst maintaining a stable cash position.
4.- Dividend: it is paying dividends again, with a payout ratio of 30% based on 2026 results.
5.- Rise in oil and gas prices. The war in the Middle East has led to a scenario of reduced supply, which will keep prices under pressure. We estimate that the price of a barrel of Brent crude will close the year at $85 and $80 next year. This improves margins in the oil and gas industry and is expected to lead to an increase in investment in the sector. For the time being, this war has had a negative impact on Técnicas Reunidas’ share price; as a result, the company had to set aside €45 million in Q1 2026, although it states that no projects have been cancelled and that customers are paying their invoices as normal.
Furthermore, high price levels are boosting investor appetite for the energy infrastructure sector, from which the company benefits directly.
In conclusion, we maintain our ‘Buy’ recommendation. In recent quarters, Técnicas has increased its order intake and maintains a positive net cash position. That said, uncertainty surrounding oil and the tensions arising from the war in the Middle East lead us to exercise greater caution and lower our target price to €33 per share from €38.3 per share, although the upside potential remains high at 18%.
