Acs, Actividades De Construccion Y Servicios SaBME: ACS

2024 Results Report

Feb 27, 2025 at 5:33 PM UTC · Issued by Acs, Actividades De Construccion Y Servicios Sa

Watch Acs, Actividades De Construccion Y Servicios Sa explain itACS, Actividades de Construcción y Servicios, S.A. (ACSAF) Q4 2025 Earnings Call · Replay · Feb 26

FY 2024

RESULTS REPORT

February 27th, 2025

2024 RESULTS REPORT

TABLE OF CONTENTS

1	Executive Summary	3
2	Income Statement	4
2.1		Sales and backlog	5
2.2		Operating Results	6
2.3		Financial Results	7
2.4		Net Attributable Profit	7
3	Balance Sheet	8
3.1		Non-current assets	8
3.2		Working Capital	9
3.3		Equity	9
3.4		Net Debt	10
4	Net Cash Flows	11
4.1		Net operating cash flow	11
4.2		Net financial investments	12
4.3		Capital flows	12
5	Results by Segments	14
5.1		Turner	14
5.2		CIMIC	15
5.3		Engineering & Construction	16
5.4		Infrastructure	19
5.5		HQs and non-core activities	20
6	Disclosures to CNMV	22
7	Description of the Main Risks and Uncertainties	23
8	Sustainability	28
9	Information on related parties	29
10 Events occurring after closing	29
11	Annexes	31
11.1	Capital Markets	31
11.2	Exchange Rate Effect	32
11.3	Income Statement	34
11.4	Income Statement by Segment	35
11.5	Balance Sheet by Segment	36
11.6	Financial Structure Detailed as of December 31st, 2024	37
11.7	Iridium´s Concessions List	38
11.8	ACS Group Organizational Structure	39
11.9	Glossary	40

2024 RESULTS REPORT

1 Executive Summary

NET PROFIT	EPS	SALES	BACKLOG	EBITDA	NET DEBT
828 €mn	3.23 €	41,633 €m	88,209 €m	2,456 €mn	702 €m
+6.1%	+7.8%	+16.5%	+19.9%	28.7%	+1,102 €mn

Data presented according to ACS Group management criteria. Annual variations compared to FY 2023 Proforma.

Sales in 2024 grew by 16.5% to € 41,633 million. This upturn in performance is supported by a strong production in strategic markets that grew by 21% year-on-year, mainly in digital infrastructure, biopharma and health.
The backlog in 2024 stood at € 88,209 million, 19.9% higher than a year ago on a comparable basis thanks to the significant volume of new orders recorded in the period (€51,521 million).
The strong headway in order intake was the result of the ACS Group's strategic positioning as a global leader in the development of infrastructure in general, with a special focus on high- growth markets such as digital infrastructure, energy, sustainable mobility, and defense.
EBITDA was € 2,456 million, up 28,7% over the previous year, based on a solid overall performance and impacted by Thiess' global consolidation starting in the second quarter of 2024.
Net Profit reached € 828 million, meanwhile Earnings Per Share rose 7.8% to €3.23.

2024 change in financial position

Net e t ec Net O	erati	Net e uity	S are	er	erimeter	Net e t ec
Ca	F	i ve tme t a	remu	erati	c a e F a
NOCF	A	(1)		t er	(2)
Figures in euro million

Includes share capital increase in Abertis (€650mn), acquisition of 10% of Thiess (€194mn), additional stake investment in
HOCHTIEF's (€130mn), bolt-on acquisitions and capital investments
Includes integration of Thiess' net debt of € 1.0 billion, the cash settlement of forward contracts of €485mn, the repayment of debt associated with the stake in SH-288, amounting to €469mn, exchange rate impact and other perimeter adjustments.

The high net operating cash flow generation of € 2,094 million in the last twelve months and the cash settlement of the derivative contracts on ACS shares for € 485 million allowed to

2024 RESULTS REPORT

make net financial investments of € 1,148 million and to remunerate shareholders with €862 million.

Net Debt amounted to € 702 million as of 31 December 2024, up € 1.102 million in the last twelve months, including the consolidation of approximately € 1,000 million from Thiess.

2 I c me Stateme t

Summary income statement
Euro Million				FY 2023	FY 2024	yoy	yoy FX-adj.
Sales				35,738	41,633	+16.5%	+16.4%
EBITDA				1,909	2,456	+28.7%	+28.6%
Margin (%)				5.3%	5.9%	56 bps
EBIT				1,358	1,590	+17.1%	+17.0%
Ordinary financial result	(1)	(380)	(426)

Other results		(2)		150	(170)

PBT				1,127	993	-11.9%	-11.9%
Margin (%)				3.2%	2.4%	(77) bps
Taxes				(199)		86
Minority interest			(148)	(252)
NPAT				780	828	+6.1%	+6.2%
EPS				.	€	.	€	7.8%	7.9%
Extraordinary impacts		(180)	(143)
Ordinary NPAT	(3)			600	684	+14.0%	+14.1%

Comparable Ordinary PBT		984	1,215	23.6%

Includes financial income and expenses.
Includes exchange rate differences, changes in fair value of financial instruments, impairment and gains/losses from the disposal of financial instruments, impairment and gains/losses from the disposal of fixed assets, and equity accounted income from non-operating activities.
Ordinary results adjusted for extraordinary items: i) the capital gain for the sale of 56.76% stake in SH-288 to Abertis in 2023, ii) one-off gain at CIMIC, net of provisions, in 2024, iii) impact from SH-288 termination, net of provisions and extraordinary items in 2024 and iv) other non-recurring results from the infrastructure segment derived from regulatory changes and a favorable court ruling in 2024.

2024 RESULTS REPORT

2.1 Sales and backlog
Sales in FY 2024 registered a growth of 16.5%, reaching € 41,633 million, supported by the good performance of all the Group´s activities and regions where the Group operates.
The breakdown of sales by geographical area shows the diversification of the Group's revenue sources, with North America accounting for 61% of sales, Asia Pacific 24% and Europe 14% (of which Spain accounts for 7.5%).

Sales by geography and country
Euro Million	FY 2023	FY 2024	yoy	yoy FX-adj.
Sales by geography	35,738	41,633	+16.5%	+16.4%
North America	22,007	25,355	+15.2%
Asia Pacific	8,019	10,045	+25.3%
Europe	5,432	5,845	+7.6%
RoW	280	388	+38.5%
Sales by country	35,738	41,633	+16.5%	+16.4%
USA	20,107	23,737	+18.1%	+17.6%
Australia	7,373	8,811	+19.5%	+20.0%
Spain	3,356	3,607	+7.5%	+7.5%
Canada	1,900	1,622	-14.6%	-13.3%
Germany	838	1,003	+19.7%	+19.7%
Rest of Europe	1,238	1,618	+30.7%	n.a.
RoW	925	1,235	+33.5%	n.a.

Sales in North America increased substantially thanks to sales in the United States, which grew by 18.1% (17.6% FX-adjusted).

Asia Pacific also grew strongly, by 25.3% because of Thiess' consolidation. Meanwhile, Europe also delivered solid growth figures thanks, in particular, to the evolution of Germany (+19.7%).

The backlog as of December 2024 stood at € 88,209 million, up 19.9% from December 2023, mainly driven by the volume of new contracts awarded in 2023 totaling € 51,521 million, with an increasing share of advanced technology and new generation infrastructure.

Backlog by geography and country
Euro Million	FY 2023	FY 2024	yoy	yoy FX-adj.
Backlog by geography	73,538	88,209	+19.9%	+17.7%
North America	38,536	47,561	+23.4%
Asia Pacific	19,394	23,910	+23.3%
Europe	14,859	16,193	+9.0%
RoW	749	546	-27.1%
Backlog by country	73,538	88,209	+19.9%	+17.7%
USA	36,022	44,433	+23.3%	+22.9%
Australia	16,471	18,365	+11.5%	+11.9%
Spain	6,485	7,031	+8.4%	+8.4%
Canada	2,514	3,128	+24.4%	+26.4%
Germany	4,557	4,820	+5.8%	+5.8%
Rest of Europe	3,817	4,342	+13.8%	n.a.
RoW	749	546	-27.1%	n.a.

2024 RESULTS REPORT

North America continues to be the leading region in terms of order backlog with € 47,561 million, mainly in the United States, where the backlog was up by 23.3%. Much of this growth is in the new generation, advanced technology and social infrastructure sectors.
The backlog in Asia Pacific region amounted to € 23,910 million, with Australia as the main component at € 18,365 million.
In Europe, the backlog grew by 9%, supported by the figures of Spain and Germany, and especially for the rest of Europe, which grew by 13.8%.
2.2 Operating Results
EBITDA was up 28.7% to € 2.456 million. Operating profit (EBIT) was € 1,590 million, 17.1% higher than in the previous period on a comparable basis.

Operating results
Euro Million	FY 2023	FY 2024	yoy
Sales	35,738	41,633	+16.5%
Turner	16,185	19,264	+19.0%
CIMIC	8,100	10,213	+26.1%
Engineering & Construction	8,903	9,505	+6.8%
Infrastructure	187	173	-7.5%
HQs and non-core activities	2,364	2,478	+4.8%
EBITDA	1,909	2,456	+28.7%
Turner	433	551	+27.1%
CIMIC	599	1,197	+99.8%
Engineering & Construction	474	511	+7.6%
Infrastructure	304	281	-7.7%
(1)	-	(211)
Non-recurrent infra results
HQs and non-core activities	98	127	+30.1%
EBIT	1,358	1,590	+17.1%
Turner	385	512	+33.0%
CIMIC	416	715	+72.0%
Engineering & Construction	304	344	+13.5%
Infrastructure	288	248	-14.1%
Non-recurrent infra results	-	(211)
HQs and non-core activities	(34)	(18)	-47.7%

1. Non recurrent infra results include impact from SH-288 termination, net of provisions and extraordinary items in 2024 and other non-recurring results from the infrastructure segment derived from regulatory changes and a favorable court ruling in 2024.
The Texas Transportation Commission (USA) completed the early termination process of the SH-288 highway concession contract on October 8, 2024. At the Net Profit level, the impact of the termination has been offset by provisions and extraordinary results. At the EBITDA and EBIT level, the impact is - € 182 million after partially offsetting the impact of - € 207 million from Abertis.
Additionally, in the fourth quarter the tax reform was introduced, reinstating the limitations established in RDL 3/16 regarding tax losses. This affected the value of a deferred tax asset recorded by Abertis, with an impact of - € 29 million at the ACS level.

2024 RESULTS REPORT

2.3 Financial Results

Financial result
Euro Million	FY 2023	FY 2024	yoy
Financial expenses	(659)	(843)
Financial income	279	417

Ordinary financial result	(380)	(426)	12.1%
Foreign exchange results	3	(17)
Impairment non-current assets results	422	(29)
Results on non current assets disposals	(97)	28

Net financial result	(52)	(444)	n.m.

Most of the Group's debt is hedged against interest rate fluctuations. The Group's ordinary financial results increased by € 46 million up to negative € 426 million, mainly impacted by the integration of Thiess. Adjusted by this effect in 2023, the Group's ordinary financial result decreased by € 41 million.
Changes in the value of financial instruments in 2023 were based, for instance, on the effect of ACS equity derivatives.

2.4 Net Attributable Profit

Attributable ordinary net profit breakdown
Euro Million	FY 2023	FY 2024	yoy	yoy FX-adj.
Integrated Solutions	426	536	25.8%	25.8%
Turner	224	327	45.8%	45.4%
CIMIC	202	209	3.7%	4.0%
Engineering & Construction	147	156	6.6%	5.8%
Dragados	119	124	4.0%	3.0%
HOCHTIEF E&C	27	32	18.3%	18.1%
Infrastructure	206	205	(0.4%)
Abertis	179	186	3.6%
Iridium	26	19	(27.5%)
HOCHTIEF HQ	(117)	(133)
ACS HQ & other	(61)	(81)
Ordinary NPAT	600	684	14.0%	14.1%
NPAT	780	828	6.1%	6.2%
EPS	. €	. €	7.8%	7.9%

Ordinary net profit grew 14% to € 684 million thanks to the good operating and financial performance of all businesses. Turner was the largest contributor to ordinary net profit, up 45.8%.
Ordinary results adjust for extraordinary items: In 2023 the capital gain for the sale of 56.76% stake in SH-288 to Abertis and in 2024 the one-off gain at CIMIC, net of provisions, the impact from SH-288 termination, net of provisions and extraordinary items and other non-recurring results from the infrastructure segment derived from regulatory changes and a favorable court ruling in 2024.
Group Net Profit in 2024 amounted to € 828 million, 6.1% higher than in the previous period.

2024 RESULTS REPORT

3 Balance Sheet

Balance sheet
Euro Million	Dec-23		Dec-24		yoy
Fixed and non-current assets	12,915	35%	15,076	36%	+16.7%
Intangible fixed assets	3,324		5,727
Tangible fixed assets	1,840		3,026
Equity method investments	5,789		3,914
Non current financial assets	1,001		937
Long term deposits	26		1
Financial instrument debtors	84		73
Deferred taxes assets	851		1,398
Current assets	23,583	65%	26,949	64%	+14.3%
Non current assets held for sale	2,214		1,687
Inventories	790		1,024
Accounts receivables	9,445		11,390
Other current financial assets	1,164		1,081
Financial instrument debtors	528		12
Other short term assets	355		343
Cash and banks	9,087		11,414
TOTAL ASSETS	36,498	100%	42,025	100%	+15.1%
Net worth	5,631	15%	5,115	12%	-9.2%
Equity	5,008		4,406
Value change adjustments	321		308
Minority interests	301		401
Non-current liabilities	11,278	31%	13,794	33%	+22.3%
Subsidies	2		2
Long term provisions	1,889		1,691
Long term financial liabilities	8,301		10,400
LT operating lease liabilities	543		782
Financial instruments creditors	30		38
Long term deferred tax liabilities	332		461
Other long term accrued liabilities	180		421
Current liabilities	19,589	54%	23,116	55%	+18.0%
Liabilities from assets held for sale	1,990		1,396
Short term provisions	1,119		1,290
Short term financial liabilities	1,575		2,799
ST operating lease liabilities	161		357
Financial instruments creditors	8		29
Trade accounts payables	14,295		15,961
Other short term liabilities	442		1,284
TOTAL LIABILITIES AND EQUITY	36,498	100%	42,025	100%	+15.1%

3.1 Non-current assets
The most significant changes in property, plant, and equipment, intangible assets, and equity method-accounted investments related to Thiess, which ceased to be consolidated by equity method and instead became fully consolidated in the second quarter of the year.
Equity method-accounted investments include the value of the equity holding in Abertis (50%), HOCHTIEF affiliated companies, and the Iridium concessions.
The balance of intangible assets includes goodwill amounting to € 4,754 million. € 554 million of this came from the ACS and Dragados Group merger in 2003, € 1,144 million from the acquisition of HOCHTIEF in 2011, and € 1,900 million from full consolidation of Thiess in Q2 2024. The remainder has come from including a series of companies in the Group.
Assets held for sale include energy projects in the process of being sold, such as the Kincardine offshore wind farm in Scotland and the Ca-Ku-A natural gas compression facility in Mexico.

2024 RESULTS REPORT

3.2 Working Capital

Working capital
Euro Million	Dec-23	Mar-24	Jun-24	Sep-24	Dec-24
Inventories	790	833	1,023	1,030	1,024
Accounts receivables	7,921	8,639	9,228	9,721	9,505
Other debtors	2,407	2,349	1,990	1,921	2,239
Total WC assets	11,118	11,821	12,241	12,672	12,768
Trade receivables	(10,542)	(9,488)	(10,764)	(10,993)	(12,155)
Down payments	(3,134)	(2,876)	(3,186)	(2,951)	(3,125)
Other creditors	(2,349)	(2,284)	(3,739)	(3,319)	(3,641)
Total WC liabilities	(16,024)	(14,649)	(17,689)	(17,264)	(18,921)
Total working capital	(4,906)	(2,828)	(5,449)	(4,592)	(6,153)

The working capital balance amounted to € 6,153 million, impacted by the consolidation of Thiess.
Net working capital, whose credit balance increased by € 1,247 million in 2024, includes the liability recorded for the put option in relation to the 40% non-controlling interest in Thiess of € 642 million.
The change in operating working capital amounted to € 596 million, compared to negative €
73 during the same period in 2023, an improvement of € 669 million over the last twelve months.
The factoring balance as of 31 December 2024 stood at € 1,411 million, up € 122 million compared to September 2024 and € 304 million compared to December 2023, in line with the Group's increased activity and the incorporation of Thiess.

3.3 Equity

Net worth
Euro Million	Dec-23		Dec-24		yoy
Equity	5,008	89%	4,406	86%	-12.0%
Value change adjustments	321	6%	308	6%	-4.0%
Minority interests	301	5%	401	8%	+33.1%
Net worth	5,631	100%	5,115	100%	-9.2%

- ACS Group's equity was € 5,115 million at the end of 2024, a decrease of 9.2% compared to December 2023.

- Shareholder´s Equity decreased by 12.0% to € 4,406 million, due to the registration of Elliot´s put option for the global consolidation of Thiess.

2024 RESULTS REPORT

3.4	Net Debt
Net debt
Euro Million		Turner	CIMIC	Engineering &	Infrastructure	HQs and non-	ACS Group
	Construction	core activities

LT loans from credit entities	-	(2,253)	(772)	(400)	(2,851)	(6,275)
ST loans from credit entities	-	(31)	(968)	(43)	(276)	(1,318)
Debt with credit entities	-	(2,284)	(1,740)	(443)	(3,127)	(7,593)
Bonds		-	(1,228)	-	-	(3,940)	(5,169)
Non recourse financing	-	-	-	(112)	(160)	(272)
Other financial liabilities	(0)	-	(70)	(60)	(8)	(138)
Total External Gross Debt	(0)	(3,512)	(1,810)	(615)	(7,235)	(13,173)
Net debt with Group's companies & affiliates	(139)	-	(1,032)	(5)	1,150	(26)
Total Gross Financial Debt	(139)	(3,512)	(2,842)	(620)	(6,085)	(13,198)
ST & other financial investments	329	187	1,153	169	(756)	1,083
Cash & equivalents	2,901	1,591	3,464	726	2,732	11,414
Total cash and equivalents	3,231	1,778	4,617	895	1,976	12,496
Net cash / (debt)		3,092	(1,734)	1,775	274	(4,109)	(702)

Net Debt at the end of December amounted to € 702 million, increasing by € 1,102 million in the year, mainly due to the integration of Thiess' debt of about € 1,000 million.
The generation of Net Operating Cash Flow of € 2,094 million allowed for investment in growth and strategic operations of € 1,148 million and remuneration to shareholders of € 862 million.

Net debt evolution 2024

Net e t ec Net O	erati	Net e	uity	S are	er		erimeter(1)Net e t ec
Ca	F	i ve tme t	remu	erati	c	a e F
NOCF	a	A			a	t er

Figures in euro million

Includes integration of the net Thiess debt of € 1.0 billion, the cash settlement of forward contracts, the repayment of debt associated with the stake in SH-288, exchange rate impact and other perimeter adjustments.