Intermoney| ACS (ACS) (Buy, Target Price €40/share), through its North American subsidiary Turner, has been awarded a €353-million contract to upgrade the infrastructure of Offutt Air Force Base, in Nebraska. The work is aimed at improving the infrastructure at Offutt Air Force Base, located near Omaha in the state of Nebraska, in preparation for future flooding, after the facility suffered a flooding catastrophe in March 2019. A number of units are planned to be housed in a three-storey building, thereby keeping out future floodwaters of the Missouri River, with work due to be completed in 2027.
Assessment: This is a new contract for Turner, which is owned by Hochtief, itself 70% controlled by ACS. Turner has already signed an important contract this year with the US Navy for the construction of a dry dock for submarines at the Pearl Harbor base in the state of Hawaii, an initiative valued at €2.7 billion. Turner, on the other hand, is also involved in the construction of, among other assets, sports stadiums. The United States accounts for almost half of the Group’s revenues, in which not only Turner but also Dragados and other units participate; margins in this market are somewhat lower than in Australia, for example, but this does not prevent it from generating 30% of ACS’s EBITDA, a magnitude that grew by +14% to June 2023 to €934 million. The Group’s total portfolio then stood at around €72 billion.
