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Tecnicas Reunidas (BME:TRE) shares edged up 1.08% following the company’s H1 2025 presentation on July 31, which showcased robust financial performance and strategic positioning in the energy transition sector. The engineering firm reported significant growth across key metrics while highlighting its expanding global footprint and project pipeline.
Quarterly Performance Highlights
Tecnicas Reunidas delivered impressive financial results for Q2 2025, with sales reaching €1.44 billion, representing a 32% year-over-year increase compared to Q2 2024. The company achieved a record quarterly EBIT of €64 million, up 46% from the same period last year, while improving its EBIT margin to 4.5%.
The company’s commercial pipeline remains strong with a 24-month outlook valued at €72.3 billion, supporting future growth prospects. The H1 2025 order intake reached €3.8 billion, contributing to a year-to-date backlog of €13.1 billion.
As shown in the following chart detailing the company’s quarterly performance trends:
The company has demonstrated consistent growth in both sales and profitability over five consecutive quarters, with EBIT margins steadily improving from 3.8% in 2023 to 4.5% in Q2 2025.
Strategic Initiatives
Tecnicas Reunidas continues to strengthen its position in the energy transition market, with a particular focus on low-carbon technologies. The company has secured several significant service contracts, including multiple Front-End Engineering Design (FEED) projects with major industry players.
One of the most notable strategic developments is the ACWA Power FEED project for a green ammonia plant, which represents the largest such facility in the world. This project, with a total CAPEX exceeding €4 billion, involves producing 0.4 MTPA of hydrogen and establishing a green hydrogen corridor between Saudi Arabia and Europe.
The details of this landmark project are illustrated here:
The company is also expanding its services portfolio with several other notable contracts, including a FEED project in consortium with Thyssenkrupp for a fertilizers facility (~€65 million), a clean fuels facility FEED (~€35 million) for a Middle East National Oil Company, and an O&M digitalization project (~€20 million) for another Middle East NOC.
As shown in the following slide detailing recent service awards:
Global Expansion
To support its growing project portfolio, Tecnicas Reunidas is significantly expanding its engineering capacity. The company’s workforce has grown from 8,500 employees in 2023 to 11,400 in 2024, with projections to reach approximately 13,500 by the end of 2025 – representing a 60% increase over two years.
This expansion includes strengthening the company’s global engineering hubs and local offices across multiple continents, positioning Tecnicas Reunidas to execute complex international projects more efficiently.
Detailed Financial Analysis
The company’s balance sheet continues to strengthen, with a net cash position of €422 million as of H1 2025, representing a 33% increase from H1 2024. This robust cash position provides financial flexibility for future growth initiatives while enabling better purchasing conditions and operating efficiencies.
The following chart illustrates the company’s improving cash position:
Tecnicas Reunidas’ equity position, including the SEPI Participative Profit Loan (PPL), has reached €654 million in H1 2025, providing a solid foundation for the company’s operations. The company mentioned in its presentation that it will provide an update on SEPI loans repayment in its Q3 2025 results.
Forward-Looking Statements
Looking ahead, Tecnicas Reunidas indicated that project acceleration may lead to updated sales guidance for 2025. The company has scheduled an Investor Day on October 2, 2025, to provide updates on its SALTA strategic initiative.
The company summarized its H1 2025 performance with these key metrics:
During the earnings call, CEO Eduardo Samir emphasized the company’s evolution beyond traditional EPC services, noting: "We have succeeded in being considered not only as a good EPICist, but as a company that can render solidly pure services." This strategic positioning in both services and EPC projects appears to be yielding results, as evidenced by the improving margins and robust order intake.
With its stock trading at €31.88, just below its 52-week high of €32.42, investor sentiment remains positive regarding Tecnicas Reunidas’ growth trajectory and strategic direction. The company’s focus on energy transition projects, particularly in green hydrogen and ammonia, positions it well to capitalize on global decarbonization trends.
Full presentation:
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