MT Højgaard Q2 2025 slides: stable revenue but margins decline amid restructuring

Introduction & Market Context

MT Højgaard Holding A/S (MTHH) reported its second quarter 2025 results on August 19, showing stable revenue but declining profit margins as the Danish construction company continues its strategic restructuring efforts. The stock closed down 3.82% following the announcement, with investors reacting to the pressure on operating margins despite improvements in cash flow and net income.

The company’s shares traded at DKK 393, below its 52-week high of DKK 437 but significantly above its 52-week low of DKK 164, reflecting the market’s mixed assessment of the company’s performance and outlook.

Quarterly Performance Highlights

MT Højgaard reported Q2 2025 revenue of DKK 2.675 billion, a marginal increase from DKK 2.665 billion in the same period last year. However, operating profit (EBIT) declined to DKK 100 million with a 3.7% margin, compared to DKK 124 million with a 4.7% margin in Q2 2024.

As shown in the following consolidated results chart, the company has maintained relatively stable revenue over recent quarters while experiencing some pressure on operating margins:

For the first half of 2025, MT Højgaard reported improved overall financial results with revenue of DKK 5.300 billion, up from DKK 4.958 billion in H1 2024. Net income for the period reached DKK 126 million, more than doubling from DKK 54 million in the previous year. Cash flows from operating activities showed a significant improvement, reaching DKK 115 million compared to negative DKK 97 million in H1 2024.

The breakdown of performance by business unit reveals divergent trends, with MT Højgaard Danmark generating DKK 1,575 million in revenue (-5% year-over-year) and Enemærke & Petersen contributing DKK 1,119 million (+9% year-over-year):

Segment Performance Analysis

The company’s civil engineering and infrastructure segment demonstrated strong growth, with revenue increasing by 53% to DKK 569 million in Q2 2025 compared to DKK 373 million in Q2 2024. The order portfolio for this segment also grew by 9% to DKK 2,303 million, although new order intake declined by 44% compared to the exceptionally strong Q2 2024.

The following chart illustrates the growth in the civil engineering and infrastructure segment:

In contrast, partnerships and collaborations showed significant weakness, with revenue declining by 32% to DKK 904 million in Q2 2025 from DKK 1,326 million in Q2 2024. Order intake for this segment fell by 65% to DKK 319 million, and the order portfolio decreased by 18% to DKK 3,853 million.

Strategic Initiatives

MT Højgaard continues to implement its portfolio simplification strategy, which includes several key initiatives:

1. Integration of Property Development into MT Højgaard Denmark, consolidating development and execution resources

2. Combining Enemærke & Petersen’s Jutland activities under the Raunstrup brand to ensure critical mass

3. Winding up international business, with the sales process for Arssarnerit and smaller assets ongoing

The company’s international wind-down strategy appears to be yielding positive financial results, as demonstrated by the improved net income and cash flow figures for H1 2025:

MT Højgaard also reported progress on key ESG metrics, with CO2 emission intensity decreasing by 7% to 1.3 tonnes per DKK million, recycled waste increasing to 60.6%, and accident frequency improving by 17% to 16.4. The company has also made modest gains in gender diversity, with women representing 25.1% of full employment positions, up 0.9 percentage points from H1 2024.

Order Portfolio and Outlook

Despite some weakness in new order intake, MT Højgaard maintains a solid order portfolio totaling DKK 23 billion, including:

• Contracted orders: DKK 11.606 billion (-8% compared to Q2 2024)
• Won but not yet contracted orders: Up to DKK 5.8 billion
• Potential activity in construction partnerships: DKK 4.9 billion
• Orders in joint ventures: DKK 0.7 billion

The company highlighted several significant new orders, including a global warehouse for UNICEF in Nordhavn (DKK 1.66 billion), a train workshop in Vinge for DSB (DKK 1.95 billion plus options), and a new psychiatry facility in Viborg (DKK 454 million).

MT Højgaard’s management maintained its full-year 2025 outlook, projecting revenue of DKK 10.0-10.5 billion and EBIT of DKK 400-450 million. The company noted that 94% of the year’s contract revenue was already secured by the end of June, providing confidence in achieving the annual targets despite the margin pressure experienced in Q2.

The following chart shows the company’s historical performance and 2025 outlook:

CEO Rasmus Untidt emphasized the company’s focus on portfolio simplification and operational efficiency, while acknowledging the challenging market conditions in certain segments. The strategic restructuring efforts, particularly the winding up of international operations, appear to be contributing positively to cash flow and net income despite the pressure on operating margins in the core business.

Full presentation:

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