Renta 4 | Revenue, which is in line with expectations, increased (up 4.6%) as a result of the contribution from the A21 in Italy and other assets in Chile, the commissioning of water projects and the progress of construction works in Spain, the United Kingdom, and Chile. This was partially offset by the accounting effect of divested financial assets and the completion of projects in the United States, Canada, and Uruguay.
EBITDA (up 7.4%) slightly exceeded forecasts due to better performance in the concessions segment. There are no surprises in the construction margin, which remains stable at 4.8%, and the water margin, which improves by over 21%. The backlog grows by 15% thanks to new project awards, placing it above €12,000 million, with 71% corresponding to Sacyr Concesiones.
Operating cash generation grows by 11% versus H1 2024 due to the dynamics of the financial assets themselves, exceeding forecasts. An EBITDA cash conversion rate of 88% is observed.
Net recourse debt, as anticipated, increases significantly versus 2024 due to the payment of the cash dividend, the deterioration of working capital (although some recovery is observed in Q3), and an increase in equity investments in concessions. The commitment to place it below 1x relative to recourse EBITDA + distributions is maintained, which is expected to be achieved when they receive payment for the divested concession assets in Colombia, scheduled for this November.
Ahead of the earnings call, we do not expect major news regarding the creation of the Voreantis vehicle, which is expected to bring together most of its operating concessions and to which they wanted to give entry to a financial partner with a stake no greater than 49% in order to accelerate its growth strategy (awaiting the optimal moment to carry out the operation, not before 2026). Furthermore, we will see what visibility they provide regarding the awarding of new concession projects and what comments/forecasts they can offer regarding the projects awarded throughout 2025, knowing that this year they are significantly improving the success rates in new awards.
