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Investing.com -- Shares of Swiss construction group Implenia AG (SIX:IMPN) rose more than 3% on Wednesday after the company reported higher first-half revenues and a stronger order backlog, reinforcing its full-year earnings guidance.
Revenue for the six months ended June climbed 7.6% in local currency to CHF1.86 billion, above analyst estimates of CHF1.68 billion from UBS and CHF1.74 billion from consensus.
Earnings before interest and taxes increased 13% from a year earlier to CHF57 million, in line with expectations. Net profit reached CHF33 million, slightly below consensus forecasts.
The equity ratio improved to 21.3%, compared with 20.5% in the first half of 2024. Free cash flow was negative at CHF186 million, narrowing from negative CHF280 million a year earlier despite a deterioration in net working capital.
Implenia reported an order backlog of CHF7.78 billion, up 9.8% from the same period last year and 15% higher than in the second half of 2024.
Orders were led by tunneling and bridge projects, along with growth in the buildings division.
The buildings unit saw revenue decline but improved EBIT to CHF42 million from CHF27 million a year earlier, supported by CHF20.8 million from real estate development. The order book for buildings rose 8% to CHF2.57 billion.
Civil engineering posted an 11% year-over-year increase in its order book to CHF5.15 billion and a 10.4% rise in EBIT.
The company reaffirmed its midterm guidance, including an equity ratio of 25% and EBIT margins of 4.5%. For the full year, Implenia maintained its target of CHF140 million in EBIT, close to the Refinitiv consensus estimate of CHF140.6 million.