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Introduction & Market Context
Técnicas Reunidas (BME:TRE) presented its H1 2025 results on July 31, 2025, revealing robust financial performance and strategic positioning in the energy transition sector. Executive Chairman Juan Lladó and CEO Eduardo San Miguel led the presentation, which highlighted significant growth across key metrics despite challenging market conditions.
The engineering company’s stock remained relatively stable following the presentation, with shares trading at €21.68, just 0.05% below the previous close. The stock has shown strong performance over the past year, currently trading near its 52-week high of €22.55, reflecting investor confidence in the company’s strategic direction.
H1 2025 Financial Performance Highlights
Técnicas Reunidas reported impressive financial results for the first half of 2025, with sales reaching €2,744 million and EBIT of €120 million, resulting in an EBIT margin of 4.4%. The company demonstrated consistent quarterly growth, with Q2 2025 sales of €1,437 million representing a 32% increase compared to Q2 2024.
As shown in the following chart of quarterly financial performance:
EBIT performance was even more impressive, with Q2 2025 EBIT of €64 million marking a 46% increase over the same period last year. The company’s EBIT margin has steadily improved from 3.8% in 2023 to 4.5% in Q2 2025, indicating enhanced operational efficiency and project execution.
The balance sheet has also strengthened considerably, with the net cash position reaching €422 million in H1 2025, a 33% increase from H1 2024. This robust cash position provides financial flexibility for future growth initiatives and potential acceleration of project timelines.
The following slide illustrates the company’s strengthening financial position:
These results build upon the strong momentum reported in Q1 2025, when the company posted sales of €1.3 billion (a 30% year-over-year increase) and EBIT of €56.4 million with a margin of 4.3%. The continued improvement in Q2 suggests the company’s strategic initiatives are yielding positive results.
Strategic Projects and Order Intake
Técnicas Reunidas reported a substantial commercial pipeline of €72.3 billion over the next 24 months, with H1 2025 order intake of €3.8 billion contributing to a year-to-date backlog of €13.1 billion. These figures underscore the company’s strong market position and ability to secure significant contracts.
The key performance indicators are highlighted in the following slide:
A standout project in the company’s portfolio is the FEED (Front End Engineering Design) and rollover contract with ACWA POWER for a green ammonia plant in Saudi Arabia. This project, with a total CAPEX exceeding €4 billion, will be the largest green ammonia plant in the world with a capacity of 0.4 MTPA of hydrogen.
The following slide details this landmark project:
The company also secured several other notable contracts, including a FEED project in consortium with Thyssenkrupp (ETR:TKAG) for a fertilizers facility worth approximately €65 million, a FEED contract for a clean fuels facility in the Middle East valued at around €35 million, and an O&M digitalization project for a Middle East NOC worth approximately €20 million.
Global Expansion and Resource Growth
To support its growing project portfolio, Técnicas Reunidas has significantly expanded its engineering resources. 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.
The following slide illustrates this expansion:
This global workforce distribution enables the company to leverage regional expertise while maintaining operational efficiency. The expansion aligns with the company’s previous statements about increasing engineering capacity, particularly in India, as mentioned in their Q1 2025 earnings call.
Forward-Looking Statements and Guidance
Looking ahead, Técnicas Reunidas indicated that project acceleration might lead to a revision of its 2025 sales guidance. The company also plans to provide an update on its SEPI loans repayment in its Q3 2025 results.
The company announced a SALTA Investor Day scheduled for October 2, 2025, where it will provide updates on the progress of its SALTA initiative, which focuses on sustainability and energy transition projects.
The following slide summarizes the key H1 2025 achievements and announces the upcoming investor day:
These forward-looking statements align with the company’s previously stated ambitions to increase sales to €5.5 billion and target an EBIT margin above 5% in the future, as mentioned in their Q1 2025 earnings call.
The company’s fast-track execution strategy is enabling better purchasing conditions, improved delivery times, enhanced operating margins, and greater cost efficiencies, all contributing to its strengthening financial position and operational performance.
While the presentation maintained an optimistic outlook, investors should consider the potential risks highlighted in previous communications, including political uncertainties in the US market, ongoing project disputes, supply chain issues, and macroeconomic pressures that could influence future performance.
Full presentation:
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