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Introduction & Market Context
Sacyr SA (BME:SCYR) presented its Q1 2025 financial results on April 30, 2025, showing continued growth in key financial metrics despite mixed performance across business segments. The Spanish infrastructure and services company reported a 7% year-over-year increase in revenue, reaching €1,059 million, while net profit grew by 5% to €27 million.
The company’s stock closed at €3.21 on the presentation day, down 0.68% from the previous close, according to available market data. This comes after Sacyr delivered strong performance in Q4 2024, when it reported a 53% increase in operating cash flow.
Quarterly Performance Highlights
Sacyr’s Q1 2025 results demonstrate the company’s continued focus on its concession-based business model, with 92.2% of EBITDA coming from concessions, an increase of 180 basis points compared to Q1 2024. Operating cash flow grew by 8% year-over-year to €240 million, with an improved operating cash flow to EBITDA ratio of 80% (compared to 65% in Q1 2024).
As shown in the following chart of key financial milestones for Q1 2025:
The company’s total EBITDA for the quarter was €301 million, representing an 11.4% decrease compared to the same period last year. However, this decline was primarily attributed to accounting impacts related to the evolution of financial assets in operation within the Concessions business.
A more comprehensive view of the company’s financial performance is illustrated in this summary:
Business Segment Analysis
Sacyr’s performance varied significantly across its three main business segments. The Concessions business, which remains the cornerstone of Sacyr’s strategy, reported flat revenues of €376 million but experienced a 21% decrease in EBITDA to €172 million. The company explained this decline was mainly due to accounting impacts related to the evolution of financial assets in operation.
The following chart details the Concessions business performance:
In contrast, the Engineering and Infrastructure segment delivered strong results, with revenues increasing by 24% to €691 million and EBITDA growing by 17% to €118 million. This growth was largely driven by the start-up of the Italian concession asset A-21, while maintaining a stable EBITDA margin of 4.9% in the pure construction business.
The segment’s performance is illustrated in this breakdown:
The Water business also showed impressive growth, with revenues increasing by 11% to €63 million and EBITDA growing by 13% to €13 million, resulting in an EBITDA margin of 20.6%. This double-digit growth was attributed to new contracts and international business expansion.
As shown in the Water business performance summary:
Strategic Growth Initiatives
Sacyr continues to expand its global footprint, announcing several new contracts and project milestones during Q1 2025. Key developments include a new contract for Rutas del Este with an investment of €163 million, the signing of contracts for Ruta del Itata in Chile and Turin Hospital in Italy, and the commissioning of Atacama Airport in Chile.
The company also highlighted its progress in divesting assets in Colombia, with binding offers received, as part of its strategic portfolio optimization. Sacyr’s growth strategy focuses on expanding in key markets including the USA, Canada, Chile, Italy, and Australia, with a particular emphasis on highways, hospitals, and water infrastructure projects.
Sacyr’s valuation has shown significant growth since 2021, as illustrated in this chart:
The company has increased its portfolio value by €740 million since 2021, reaching €3,551 million in 2024, despite extracting €300 million through dividend financing and asset rotations. This growth has been driven by new projects, foreign exchange benefits, and future growth potential.
Financial Position and Outlook
Sacyr’s net debt position stood at €6,926 million at the end of Q1 2025, a slight increase from €6,891 million at the end of 2024. However, the company emphasized that it has accomplished its commitment to maintain a recourse net debt ratio below 1x, with project finance accounting for 96% of total debt.
The company’s income statement by business area provides a detailed breakdown of financial performance across segments:
Looking ahead, Sacyr expects to continue its growth trajectory through increased investment in concession projects, with €135 million invested in Q1 2025 alone, bringing total equity invested in concession projects to €1,920 million. The company anticipates significant distributions from its current portfolio, amounting to €17,000 million over the life of the projects.
In terms of shareholder returns, Sacyr paid a scrip dividend in January 2025 (1 share for every 40 shares, with a value of €0.078 per right) and has proposed a cash dividend of €0.045 gross per share for July 2025, to be approved at the Annual General Meeting scheduled for June 12, 2025.
Sacyr also highlighted its strong sustainability credentials, with improved ratings from major ESG assessment agencies including Sustainalytics, Standard & Poor’s, MSCI, and CDP, positioning the company favorably in an increasingly ESG-conscious investment landscape.
The company’s key priorities for 2025 include boosting concessional growth with higher investment, continuing with the sale process of Colombian assets, and maintaining its commitment to a low recourse net debt ratio, while focusing on generating strong operating cash flow.
Full presentation:
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