Earnings call transcript: Webuild Q2 2025 sees strong growth amid market boom

Webuild SpA reported a robust performance for the second quarter of 2025, with significant revenue and earnings growth. The company’s stock saw a notable increase of 4.55% following the announcement, reflecting investor optimism. With a market capitalization of $33.9 billion and trading near its 52-week high of $13.87, InvestingPro analysis suggests the stock is slightly undervalued based on its Fair Value calculation. Despite a remarkable year-over-year revenue increase, the reported figures fell short of some forecasts, yet the market responded positively due to the company’s strategic focus on sustainable infrastructure and strong market positioning.

Key Takeaways

• Record revenue of $6.7 billion, up 22% year-over-year.
• EBITDA rose to $560 million, marking a 38% increase.
• Stock price increased by 4.55% following earnings announcement.
• Strategic focus on sustainable infrastructure with over 70% of the backlog in sustainable projects.
• Confirmed full-year 2025 guidance, aiming for sustainable growth.

Company Performance

Webuild demonstrated strong growth in the second quarter, achieving a record revenue of $6.7 billion, which represents a 22% increase compared to the same period last year. The company’s EBITDA also showed significant growth, increasing by 38% to exceed $560 million. This performance underscores Webuild’s strategic focus on sustainable infrastructure and its ability to capitalize on booming markets in key regions such as Italy, Australia, and the United States.

Financial Highlights

• Revenue: $6.7 billion, a 22% increase year-over-year.
• EBITDA: Over $560 million, up 38% year-over-year.
• Net income: €132 million, a 61% increase from the previous year.
• EBITDA margin expanded by 100 basis points.

Market Reaction

Following the earnings announcement, Webuild’s stock price rose by 4.55%, reflecting positive investor sentiment. The stock’s current performance is noteworthy, particularly as it approaches its 52-week high of $4.03. This increase is attributed to the company’s strong financial results and strategic initiatives in sustainable infrastructure.

Outlook & Guidance

Webuild confirmed its full-year 2025 guidance, emphasizing its commitment to sustainable growth. The company is exploring new opportunities, particularly in Germany’s water infrastructure sector, and is eyeing the potential Messina Bridge project valued at €11.5 billion. Webuild aims to achieve an investment-grade credit rating, which could further enhance its financial stability and market positioning.

Executive Commentary

• "We are delivering sustainable growth based on strategic discipline, long-term project visibility and our resilient diversified business model." - Pietro Sanini, CEO
• "The market is enormous. It’s booming. There are enormous quantities of projects everywhere." - Pietro Sanini, CEO
• "Delivering cash generation is more important than growth." - Massimo Ferrari, General Manager

Risks and Challenges

• Potential project delays due to supply chain disruptions.
• Fluctuations in foreign exchange rates affecting profitability.
• Increased competition in the infrastructure sector.
• Regulatory changes in key markets impacting project timelines.
• Economic uncertainties that could affect investment in infrastructure projects.

Webuild’s strong performance in Q2 2025 highlights its strategic focus on sustainable infrastructure and its ability to navigate a booming market. InvestingPro data shows the company maintains a moderate debt level with a debt-to-equity ratio of 1.11, while achieving strong returns over the past year with a 62.7% price increase. With confirmed guidance and a clear growth strategy, the company is well-positioned to capitalize on emerging opportunities, although it must remain vigilant to potential risks and challenges in the global market landscape.

Full transcript - Webuild SpA (WBD) Q2 2025:

Conference Operator (Tancoros), Call Moderator: Good morning. This is Tancoros, call conference operator. Welcome and thank you for joining the Rebuild First Half twenty twenty five Results Conference Call. Our call today is hosted by Pietro Sanini, Chief Executive Officer together with Massimo Ferrari, General Manager, Corporate and Finance. As a reminder, all participants are in a listen only mode.

After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Mr. Pietro Sarini, Chief Executive Officer. Please go ahead, sir.

Pietro Sanini, Chief Executive Officer, WeBill: Good morning, everyone. Welcome to our conference call on WeBill twenty twenty five First Half Results. I’m Pedro Salini, Chief Executive of the Group and with me, Massimo Ferreira, our General Manager, Corporate and Finance. It’s a pleasure to be here today to share with you a strong set of numbers and provide you with an update of the group’s strategies and targets. Let’s go to Slide four, first out 2025 results, strong performance across the board.

Let’s begin with highlights our strong first half results for 2025. This semester once again demonstrates the resilience and scalability of our business model even underneath the persistently complex macroeconomic environment. We have delivered robust growth across all key financial metrics, reflecting not only solid market demand, but also the strategic and operational improvements we have implemented over the past two years. We have a record revenue growth accelerating operational scale. Revenue for the first half reached a record high of $6,700,000,000 marking a 22% year over year increase.

The strong top line performance is the result of both organic growth across key markets and the ramp up of newly acquired and initial projects. The growth validates our selective intake strategy and our ability to execute efficiently on a growing and diversified backlog. Number two, EBITDA growth and margin expansion efficiency initiatives paying off. EBITDA exceeded $560,000,000 reflecting a 38% year over year increase, a clear signal of improving profitability. The EBITDA margin has significantly expanded, driven by greater selectivity in product acquisition, stronger contract management and prior revision mechanism and the early impact of our cost efficiency program, which we will cover in more detail later in the presentation.

This level of profitability achieved in the first half gives us a strong edge towards delivering on or exceeding our full year profitability targets. Number three, on track to exceed full year targets. It is worth emphasizing that the construction industry is typically second half weighted in terms of revenue and margin recognition due to seasonality and project execution cycles. This means that our first half outperformance places us well ahead of schedule to meet our upgraded 2025 target, targeted with already revised up for compared to the original twenty twenty three, twenty twenty five business plan. Number four, sheet strengthening, lower leverage, stronger liquidity.

We have also delivered meaningful progress on our financial structure. We closed the half with a net cash position of $275,000,000 and when adjusted for currency fluctuation, which Maximo will detail shortly, that figures rising to $419,000,000 Gross leverage was reduced to 2.6x, down from 3.0x at the 2024 despite our continued investment in project modernization and working capital. Importantly, gross debt has remained stable, confirming that improvement in leverage was not driven by deleveraging alone, but by strong operational cash flow generation. Number five, commercial momentum that comes with visibility and order coverage. On the commercial front, we have secured over 50% of our full year order intake target, positioning us well ahead for continued growth in the second half.

Our construction backlog now stands at $50,000,000,000 a historically high level that provides multiyear visibility and stability. This backlog not only secured the revenue base for the remainder of 2025, but also gives us significant coverage for several years beyond, ensuring continuity of operational and management. In summary, the 2025 confirms the success of our strategic transformation and operational discipline. We are delivering double digit growth in revenue and profitability, improving our financial structure and maintaining strong commercial traction in our core and growth markets. We are well positioned to outperform our 2025 guidance, generate the long term shareholder value and continue strengthening the fundamental of our group.

Slide five, building on global industrial champion, powered by people, innovation and impact. Moving to Slide five, let’s take a step back and look at the broader picture on how far we have come in recent years, not just in terms of financial performance, but in scale, strategic relevance and global impact. Strategic growth from national leaders to global industrial players. Over the last few years, we have made significant and deliberate investments to elevate our position. We have gained scale by winning and executing increasingly complex projects across multiple continents.

We have invested heavily in innovation, technology and digital tools to enhance project efficiency, risk control and sustainability. And we have expanded our international footprint, strengthening our presence in core markets like North America, Europe, Australia and The Middle East. This action has transformed us as one of the easily largest industrial player, not only in the construction business, with a role that goes well beyond the infrastructure. Today, we are a strategic enabler of economic growth and national competitiveness. Positive impact beyond financial metrics.

The product we deliver generated tangible and massive impact. The drive GDP growth by mobilizing investments, creating jobs and improving productivity through better connectivity. They enhance quality of life by upgrading healthcare, liquidity, energy and water infrastructure for millions of people. And increasingly, they contribute the national and regional security through resilient and dual use infrastructure that supports both civilian and strategic objectives. In short, our work has a transformational impact economically, socially and environmentally in the region we serve.

Human capital is the driving force behind our success. All of this progress is possible because of the passion, professionalism and commitment of our people. With a global workforce of over 95,000 people, we are proud to be a company that empowers people to grow, contribute and lead. We maintain a highly skilled talent base supported by a robust and evolving system of training and agility. In just the 2025, we delivered over four hundred and fifty thousand hours of training across technical, Nigeria and safety disciplines.

Over the past several years, we have consistently maintained an average of 15,500 new hires per year, demonstrating our strong ability to mobilize talent, upscale an increasingly critical differentiator in today’s global construction market. We believe human capital is the most important asset, especially as we embrace new technology, digitization and sustainability across all aspects of our value chain. Ready for the next phase of growth and value creation. Thanks to the scale we have been, the financial strength we have secured and the deep execution capability have proven, we are now well positioned to enter the next phase of our strategic journey. The next chapter will focus on accelerating innovation, higher margin project origination, greater integration with private capital and broader global impact, delivering sustainable, resilient and intelligent infrastructure for the future.

And now I hand over to Maximo, who will walk you through the results in more detail. Thank you, Pietro, and good morning, everybody. As customary, before I go through the results, let me remind you that we are presenting the adjusted figures to represent the recurring performance of the business, but you can find the details of the adjustments in the appendix. Let’s start from Slide seven. We continue to grow, keeping a sharp focus on margin improvement and cash generation.

As Thierry already mentioned, it has been a semester where all key financial indicators achieved double digit growth. Revenues stood at €76,700,000,000 up 22%. This growth is driven by the development of key projects in Italy and abroad, such as the high speed railways between Milano Genoa, Verona Passover and Palermo Messina. There’s no way to hydropower client in Australia, the metro station project for Sydney Metro, and the tunnel package of the North East Link in Melbourne. In Saudi Arabia, we have the Progina tanks.

The balance of our activity has further improved with more than 90% of revenues in developed economies, where there are clear rules, political stability and faster payment cycles. More than 65% of revenues are outside Italy. Australia is our second biggest market with 29% of revenues. In The Middle East and North America, we generated 138% respectively. EBITDA and EBIT have both reached new records.

EBITDA was more than EUR $560,000,000, up 38%, while EBITDA was EUR $375,000,000, up 65%. By the end of the first half of the year, we usually achieved about 40%, 45% of the full year revenues. On EBITDA, it is normally 3545%. This year, however, for both revenues and EBITDA, we reached more than 50% of the full year target. We are ahead of schedule compared to the targets that we have revised upward just few months ago.

Meanwhile, our margins improved by 100 basis points and more in respect to the 2024. This confirms the steady profit growth trend we have established in recent years. All of this reflects our success in executing backlog, streamlining operations, controlling costs, settling disputes as well as mitigating risk. On Slide eight, we have the P and L below EBIT line. We posted a net income of EUR 132,000,000 with a strong growth of 61%.

This is despite some large negative effects on ForEx, as you know. Financial income was EUR 61,000,000, decreasing by EUR 21,000,000, mainly due to a reduction in average balances of deposits with banks and lower interest rates. Financial expenses were €136,000,000 basically in line with the 2024. The increase was partially offset by a decrease in interest expenses, thanks to lower average debt on corporate credit lines. Net exchange results have negatively been impacted by the performance of the U.

S. Dollar and Saudi real against Europe. On this point, let me remind you that besides short term swings, profit and loss resulting from exchange rate fluctuation ended up being neutral over the course of a number of years. We experienced in the past ten years many times. At the bottom of the slide, we show the reported net income of million that almost doubled.

You can also see the reconciliation to the adjusted net income. The adjustments refer to accounting non monetary items such as €40,000,000 for the amortization of the positive bargain we registered in 2020 relating to Astaldi acquisition and €10,000,000 relating to the Class acquisition. Let’s start to Slide nine. Our net cash position stood at EUR $275,000,000, extending a positive trend for the sixth semester in a row. The decrease for December 2024 is explained by several factors.

First, the seasonal cash absorption that is typical of our business cycle. As shown in the slide, the net cash position differs by over 6,600 million euros between the first and the second semester. The only exception was last year’s first half that was boosted by the strong order intake at the beginning of the year. Second, the acceleration of the group’s investment plan announced earlier this year, which will unlock incremental growth and profitability in the coming years. In the 2025, CapEx amounted to around €450,000,000 Third, cash in from advanced payments will be concentrated in the second half of the year.

As you have seen, many major orders were finalized recently and several other significant orders are currently being finalized. In contrast, the repayment of advanced payments continued at a normal pace with ongoing project execution, leading to a net reduction of advanced payment of about $400,000,000 in the semester. We also experienced some adverse effects from currency fluctuations, particularly on cash held in dollars and reals, impacting some €140,000,000 We remain confident in our ability to meet and probably overachieve our

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: year end target of net cash above

Pietro Sanini, Chief Executive Officer, WeBill: $700,000,000 This is a target revised upward in March. A key point to remember, this confidence is underpinned by the collection of approximately $500,000,000 in advance payments in the second half for all orders already acquired the settlement of some contractual variation we are working on and the normalization of working capital. For example, in July, several important milestone in Australia for about more than €100,000,000 just to give you an idea, were successfully collected as scheduled. In addition, we might have lower spending on CapEx of around €150,000,000 to €100,000,000 So adding probably a target in close to €1,000,000,000 versus €1,300,000,000 that we expected at the beginning of the year. In terms of gross debt, we have been able to keep it at stable levels of around $2,900,000,000 which we consider sound and sustainable for our size.

In fact, thanks to the growth of the business, our gross leverage ratio continues to be steady downward trajectory, reaching 2.6x, reflecting our commitment to maintaining a solid structure and preserving a strong balance sheet. Let’s start to Slide 10, which shows the main numbers of our corporate debt and liquidity profile. The figures presented have been pro form a adjusted for the liability management operation, which occurred after the June. With the new $450,000,000 bond issued in July, maturing through 02/1931, we successfully refinancing the bond expiring in December 2025 and partially twenty twenty six-one. The new issue was highly successful.

It was 2x our subscript and this allowed for a larger issue at a lower yield of 4.125%, reflecting zero new issue premium despite global geopolitical volatility. We ended June 2025 with a comfortable liquidity position of €3,000,000,000 including €900,000,000 of undrawn RCF lines. Almost all of our corporate debt is at fixed rates with an average cost of about 5%. The debt has a duration of more than three Lastly, we achieved, as you know, a DBplus upgrade from Fitch that is just one step away from investment grade.

Fitch highlighted that our improved business profile will remain solid with stronger revenue visibility and enhance the contract structures that allow us to pass on incremental costs, thus supporting margin. I will now leave the floor to Pietro for a business update and outlook. Thank you, Massimo. Slide 12. Coming to Slide 12, as mentioned earlier, we believe believe it’s our goal to enter the next phase.

This next chapter is on the foundation we have already laid. Our technical expertise our resilient and diversified business model, the scale we have reached across key markets and the financial strength that now supports disciplined expansion and innovation. So what are the key levers that will support this next phase? Let me briefly walk you through the four core pillars we will rely on to save the new business tomorrow. We will go into greater detail and issue the slides as follows.

First, a solid order backlog with the building scale already in hand. We are starting from a position of strength with 50,000,000,000 construction backlog already secured. It gives us a multiyear revenue visibility, a strong foundation of diversified projects across geographies and continued operational momentum across both public and private infrastructure sectors. This sector represents not only scale but quality. We have an increasing share of contracts with technically complex, margin accretive and aligned with our long term strategic objectives.

Number two, favorable market dynamics, significant growth opportunities ahead. The infrastructure market remains an upward trajectory. We continue the investment plan across sectors of sustainable transport and mobility, water and energy infrastructure, climate resilient and environmental protection, digital and strategic value infrastructure. We have already captured positive momentum through our current pipeline, over 6,500,000,000.0 in orders year to year and another 1,800,000,000.0 where we have best sell cost for them. But the opportunity is much larger.

Our teams are actively working on a pipeline of future projects not yet included in our financial guidance, including mega projects in Italy, U. S, Australia and Saudi Arabia. Pretty much in strengthening, operating model transformation paying off. One of the most significant improvements in recent years has been our profitability. Thanks to more selective bridging and improved contract structure, faster price adjustment mechanism, a new model of contract risk management and disciplined execution supported by digital tools.

We have significantly improved margin and expect this trend to continue. Margin expansion is a key pillar of our future value creation, and we are confident that the tools are now in place to deliver sustainable improvement. Number four, stronger cash generation, unlocking financial flexibility. Lastly, we are entering a phase of enhanced cash flow generation. We are seeing tangible progress in accelerated collection and working capital optimization, tighter financial discipline across project execution and a more robust balance sheet, now in a net cash position of $275,000,000 that would be $419,000,000 if it adjusted for ForEx.

This improvement allow us to reinvest in growth, fortuit selective M and A and maintain flexibility as we navigate future market cycles. In summary, we are confident that we believe this position to scale new heights in coming years With a strong backlog, favorable market conditions, improving margin and solid cash generation, the foundation is set for sustainable long term value creation. Let’s now take a closer look at each of those four pillars in the next slide. Turning to Slide 13, we provide a detailed breakdown of our total backlog as of 06/30/2025, which stands at a robust $59,000,000,000 These figures confirm our strong commercial positioning and provide a solid foundation for future growth and strategic execution. Number one, better composition balanced across construction and construction.

Out of the total $559,000,000,050 billion dollars comes from our construction backlog, which remains one of the largest in the industry. An additional $8,800,000,000 comes from concession, operation and maintenance of our NAND contracts, providing long term recurring revenue streams and diversification of our business model. The substantial construction backlog alone provides full coverage for our 2025 revenue target and ensures feasibility for at least the next four years, which is critical for medium term planning and strategic capital allocation. Number three, adjusting for fiber and currency impact, underlying momentum impact. It is important to note that this June 2025 vessel does not yet include $3,000,000,000 in additional projects where the group is already the best bidders for the contract that’s been formally awarded after June 1.

When including this project and adjusting for the negative impact of $1,000,000,000 due to currency fluctuation, the backdrop remains substantially in line with our year end 2024. It’s an important idea that our commercial momentum is continuing into the second half and any short term foreign exchange effect has not materially impacted the strength of our underlying operations. Number three, geographic footprint, low risk markets and strong diversification. Approximately 90% of our total backlog is concentrated in low risk jurisdiction, consistent with our strategic focus on market stability, legal clarity and contractual availability. Italy accounts for 38% of the backlog, we are affirming our strategic role in the country infrastructure development and our leadership in key national projects.

Australia contributes 16%, reflecting continued success in securing large scale technical advantage projects in a mature risk sharing market environment. This geographical distribution ensures portfolio resilience while also pursuing us well to capitalize on public investment cycles in some of the world’s most attractive infrastructure market. Number four, sustainability, a purpose driven backlog aligned with global goals. We are proud to report that nearly all of our backlog is directly aligned with the United Nations sustainable development goals. In particularly over 70% of our vessels, we are fighting sustainable mobility projects, including nicely brave metros like rail and road networks, designed to reduce emissions, improve access and promote inclusive growth.

This alliance is not coincidental. It reflects a deliberate strategy to focus on projects that not only deliver economic value, but also create positive environmental and social impact. It is also positioning us as a preferred partner for institutional investors, governments and multilateral agencies. In summary, our $59,000,000,000 backlog as of June 2025 gives us scale, revenue visibility and strategic clarity. When including awarded project cost during adjusting for FX headwinds, our backlog remains consistent with twenty twenty four levels demonstrating resilience and commercial traction.

With 90% of the project in low risk countries, a growing share of the current concession revenues and a deep commitment to sustainability, we are structurally well positioned to deliver long term responsible growth. Let’s move to Slide 14, robust order intake sustaining momentum into 2025. As of today, we have secured 6,500,000,000 in new orders year to date, confirming our continued strong commercial momentum. This puts us at over 50% of our full year target, demonstrating solid progress and visibility despite a nice base of comparison following the exceptional performance between 2022 and 2024. This robust pipeline reflects both our technical leadership and our strategic focus on high quality, low risk geographies, which together support sustainable long term value creation.

Number one, order intake focused on strategic low risk markets. A defining characteristic of our recent wins is their geographic and risk profile. Nearly all of our 2025 over intake to date has come from low risk, high stability markets, aligned with our strategic strategy to price our priority branch jurisdiction with solid media framework, stable macro environment and strong infrastructure investment plan. This disciplined approach helps protect margin, reduce execution risk and ensure high cash flow availability from new projects. Number two, selected high impact projects secured in 2025.

We have secured several high value high visibility projects across our core region, including Australia where are awarded a Women and Babies in a flagship healthcare infrastructure project. It will serve as a center of excellence for women and children care and reinforces our position in the healthcare construction segment in Australia, a market known for collaborative process models and strong public investment. Saudi Arabia, are delivering a culture and commercial hub in Bulgaria, a landmark development as part of the Saudi Arabia Vision 2030 diversification strategy. Additionally, we are set to announce awards of a major other product, further expanding our presence in the key to growing urban mobility market. United States, in North Carolina, we are leading the expansion and modernization of Interstate 85, a key entity in The U.

S. Southeast. The Plasticate transport infrastructure project underlines our capability in complex roadway works in North America, one of our strategic growth regions. Domestically, we are progressing with the extension of Rome Metro C, adding five four kilometers and four milliseconds. Notably, two of those stations will also serve as a theological museum, blending infrastructure development with cultural preservation, an area where our experience is unmatched.

We also met the offer of one of the lots of Italy’s next ICE3 rail segment, which upon award will further reinforce our leadership in ICE3 rail, both in Italy and in Pernicious. In summary, we have started the year with strong commercial performance with over $6,500,000,000 of new contract secured and the quality and diversity of those of these new projects, not only in terms of geography and technical complexity, but also social impact, showcase the strength of our positioning in strategic infrastructure globally. With a well diversified backlog, continued focus on low risk markets and strong visibility on future wins, we are confident on our ability to meet or exceed our full year commercial and financial targets. Slide 15, short term pipeline securing growth across key global markets. Let’s now take a closer look at our short term pipeline, which reflects significant near term commercial opportunities across our core geographies.

This pipeline builds on our established presence, strong client relationship and deep technical capabilities and position us to further accelerate growth through strategic project acquisition. Italy, number one, transitioning to the post PNRR, which is the recovery and resilience plan era. In Italy, as the country moves into the post national recovery and resilience plan phase, infrastructure development remains a top priority with investment focused on two main domains. Part of the production, the process includes the Teleno, MetroCalabrio, high speed rail line as well as metro network expansion in major urban centers at Arum and in Milan. This project will enhance regional connectivity, reduce travel time and contribute to the decarbonization.

Water and social infrastructure, significant investment is also expected in the renovation of aging hydroelectric plants along with the construction of human hospital and sport infrastructure, including stadiums. This initiative will modernize essential public services and improve climate resilience. We believe this uniquely positioned to capitalize on this momentum as a national champion and prepare a partner in strategic infrastructure growth. Australia, a top tier player in fast growing markets. Australia continues to represent one of the most dynamic markets in our portfolio.

We will be now ranked among the top five contractors in the country. The next wave of investment will be led by the energy and mining sector, particularly hydropower, water infrastructure, energy storage systems and the modernization of electricity transmission grid. Demand is also growing for hospital, pod upgrades and urban transport driven by population growth and regional development strategy. With a strong track record and local partner ecosystem already in place, we believe it’s well prepared to compete and for execute major new projects in this high growth environment. United States, a renewed push for public private infrastructure.

In The United States, evolving policy and funding frameworks are creating new opportunities for private sector involvement in public infrastructure. The recently approved One Big Beautiful deal actually is expected to stimulate broad based infrastructure development, particularly in energy, defense and civil war. Priority area includes roads and bridges, strategic defense and related infrastructure investments in climate resilience and clean energy infrastructure. We believe that clearly positioning itself to benefit from this new investment cycle We will focus on public private partnership more than in progressive design deal contract where we bring added value through early stage design, cost control and execution expertise. Canada ambitious infrastructure expansion across provinces.

Canada is entering a period of expansive infrastructure investment with multiple provinces launching long term capital plans focused on urban transit systems including metro lines and light rail transit, healthcare and education infrastructure such as new hospitals and schools, hydroelectric and transmission infrastructure in line with Canada’s clean energy transition. These investments are aligned with federal and provincial climate and economic goals and present stronger opportunities for technical capital, financial sound contractors like the deals. Saudi Arabia mega projects driven by Vision 2,030 and Global Finance. Saudi Arabia continues to push an ambitious infrastructure agenda in Vision 2,030 aimed at our economic diversification, tourism development and national modernization. Infrastructure demand will be further accelerated by the two thousand and thirty four FIFA World Cup and Export 02/1930, which will require large scale development in metro and rail networks, new stadium and sport facilities, airports and other strategic urban and intercity infrastructure.

With ongoing projects already in place and strong global engagement, we believe it’s well positioned to expand its presence to secure a larger share of the Gulf Region MEGAN project pipeline. In summary, across all of our key geographies, the short term pipeline remains reaching opportunities ranging from high speed rail and network to hydropower, energy infrastructure and hospitals. These markets are not only large and growing, but they also align with our core competencies and strategic ambition. We have a proven execution track record and a financial operational strength to scale faster. We are ready to capture the next wave of strategic infrastructure investment around the world.

We are going to Slide 16, expanding our horizon strategic growth opportunities beyond the current pipeline. We would like to draw your attention to a broader set of major opportunities on the horizon, projects that are not yet reflected in our current backlog of financial forecast, but which presents considerable upside potential. Strategic infrastructure projects in development. Among these emerging opportunities, the Messina Bridge, a high profile mega project that, if approved, will connect Sicily to the Mainland Italy. This iconic infrastructure development is expected to involve extensive engineering, design and construction phase, offering a substantial long term contract value.

In addition, we are actively monitoring a positioning for large scale dam renovation programs, both in Italy and in United States. These projects are being driven by aging infrastructure, increased climate resilience requirements and new safety regulation. We represent multibillion euro investment programs over the coming years that will align with our core technical expertise. Number two, leveraging the private financing for large scale projects. We are also increasingly focused on origination of large infrastructure projects that can be structured and financed through private capital and institutional investors.

This includes developing projects under concession of public private partnership models where we can offer clients an integrated solution from design and engineering to financing, construction and operations. This integrated approach when we declared that offering the full package gives us a distinct competitive advantage. It allows us to differentiate ourselves, providing clients with a turnkey solution, while also capitalizing on our technical experience, financial structure and capability and the credibility of our brand and track record. Water infrastructure and desalination growth, another area with significant potential is the water and desalination sector, considering recent facing water scarcity or requiring infrastructure modernization. We see the Italian Tanti with a properly recognized brand and specialized expertise in this sector.

We are currently exploring several opportunities to develop concession based water infrastructure projects, obtaining partnerships with private institutional investors which further broaden our reach and reduce risk. Geopolitical and macro infrastructure investment trends, beyond project specific opportunities that are broader microeconomic and geopolitical trends that are expected to generate sustained demand for infrastructure investment. Ukraine reconstruction, German infrastructure investment plans and NATO 1.5 GDP defense infrastructure commitment, which is now brought to a larger numbers. As you know, we have committed as a member state to increase investment in new and used infrastructure that is infrastructure that is both $3,000,000,000 in defense purpose. For Italy alone, this commitment translating approximately $50,000,000,000 in our investment based on current GDP debt.

This will include road, port, airport and communication infrastructure that must meet the enhanced standards for the military mobility and procedures. Going to Slide 17, key levers to drive profitability improvement. On this slide, we outline the four main strategic levers we are deploying to sustainably enhance profitability across our operation. Each of these measures is already yielding results and positioning us to protect and expand margins over the current and future business cycles. In case selectivity, focus grows with quality over quantity.

We have priority, right, being selective bidding. We have disciplined focus on projects that align with our risk appetite, margin expectation and strategic capabilities. The entity is no longer on volume or low cost bidding, rather we target projects where our technical spend and value added solutions provide a competitive advantage. 90% of our contract awards between 2022 and 2025 have been secured based on the best technical offer criteria, not complete price. Clients increasingly value comprehensive proposals that include innovative engineering, technical excellence and robust health and safety standards.

These intake disciplines ensure that new contracts contribute positively to profitability from the outset and avoid the legacy risk associated with low margin, high risk projects. New contract standards and dynamic risk mitigation. We have significantly upgraded our contracting strategy and project risk management model to better protect profitability in a volatile global environment. Key measures include price revision mechanism. Our contracts now include indexing pricing, proceeds that allow adjustment in response to raw material inflation, labor cost changes and supply chain disruption.

It protects our margin from unforeseen cost volatility. Collaborative content models, we are shifting towards more partners and risk sharing agreements, which include incentivized cost target cost contracts widely adopted in Australia and progressive design and build contracts increasingly used in North America. This model offers greater transparency, cost control and risk mitigation during project execution. New contract management approach enhanced the centralized oversight of contract performance and risk exposure, proactive engagement strategy to anticipate and prevent disputes, use of advanced analytics and AI to monitor trends and detect every warning signs across the portfolio, immediately improving response times and contract governance. It was a nice approach.

It reduced legal exposure, short term issue resolution time and ultimately enhances overall project profitability. Cost efficiency ahead of target going further, our cost efficiency program launched under the 2023 business plan has already delivered substantial value. We have streamlined our entire project and corporate cost by approximately 180,000,000 achieving our twenty twenty three-twenty twenty five target type of scale. This success reflects rigorous overhead management, organizational simplification, procurement organization and digitization efforts. We are now entering the next phase of the program, identifying additional cost saving opportunities, particularly indirect project costs, execution efficiencies at contractor organization logistics.

These initiatives are being built into the next business plan reinforcing our margin improvement trajectory. Working capital optimization, improving liquidity and financial flexibility, we continue to pursue a structural approach to working capital improvement, which has become a key enabler of both margin expansion and balance sheet strength. Key initiatives include accelerated collection of long standing receivables, particularly on legacy projects and public sector clients, selective asset disposals, helping to release tie up capital in noncore assets, enhanced cash collection and payment cycle discipline supported by digital tools and stronger contract enforcement. Our renewed contract management practice are also positively impacting cash flow predictability by reducing the current of business and expediting settlement cycles. Slide 18, guidance confirmed on track for another year of sustainable growth.

Turning to Slide 18, we are pleased to confirm our full year 2025 guidance. As you may recall, in March, we revised our target upward, reflecting the strong momentum we have built in 2024 and our confidence in continued execution across all fronts. This means we moved it from what was already an ambitious business plan to an even more aspirational but achievable set of objectives. Today, we can reaffirm that we remain firmly on track to deliver on those upgraded tariffs. A clear path forward, our first half results give us clear visibility and a strong foundation for the remainder of the year.

They demonstrate that growth is solid and accelerating in both top line and margin. Our financial structure is stronger than ever and our commercial pipeline continues to translate into high quality backlog. Most importantly, this is not just about short term performance. We are delivering sustainable growth based on strategic discipline, long term project visibility and our resilient diversified business model. Thank you all for your attention and continued interest in UDILIX.

We are now happy to take your question and answer session.

Conference Operator (Tancoros), Call Moderator: Thank you. This is Chorus Call conference operator. We will now begin the question and answer session. Anyone who has a question may press star and one at this time. We will pause a few minutes as callers join the queue.

The first question is from Matteo Boriczoni, Kepler Cheuvreux. Please go ahead.

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: Thank you. Good morning. I have three questions, if possible. The first one relates to guidance. You say that typically the second half is stronger than the first half.

Is there any reason for this not happening this year? Because it seems that you are maybe on track to exceed 13,000,000,000 of revenues and maybe to approach 1,200,000,000.0 EBITDA first glance given the trend that you’ve had in the first half. But I would like to check if this year could be different from the usual seasonality. Also, I would like to know what is your forex euro dollar assumption both as an average in full year 02/2025, which relates to P and L and there’s a a point at the December 31 end of the year, which is instead relevant for your net financial position. And then maybe the second question generally is Sorry.

Sorry.

Pietro Sanini, Chief Executive Officer, WeBill: Mateo. Mateo. Sorry. We we are not feeling well your voice. Can you repeat the question, please?

You are too close to the to the microphone probably.

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: Is there any reason for not being through that second half this year should be

Pietro Sanini, Chief Executive Officer, WeBill: stronger than the first half? Because it seems that

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: if we look at the typical seasonality, you might be on track to exceed your guidance and so to reach maybe or exceed $13,000,000,000 of earnings in the full year and to be around $1,200,000,000 EBITDA if we consider the trend which we saw in the first half and usual seasonality. So my question is, is

Pietro Sanini, Chief Executive Officer, WeBill: it getting to twenty minutes? And also, I was asking No. No. If it goes Okay. Let say one one by one.

But one is probably better. So it’s what I told before. The first half is permitting us to be more optimistic than the previous years to overperform in the second half in order to deliver also better than the guidance as a P and L and also as a financial position. Okay. We just reviewed the target three months ago for the full year.

So we prefer as usual underpromise and over deliver. I think that is better to say that we are confident that we can reach the already very, very optimistic guidance that we gave at the beginning of the year. Of course, at the beginning of the year, the confidence in that was strong, but now after six months, it’s even stronger. I would not change the guidance we have said at half of the year. But of course, you can judge by yourself the results in the first in the first part of the year that are going exactly into the right direction.

Okay. I was just asking what is your assumption for Eurodollar both as an average for the full year, which is relevant for the P and L? And as the

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: ending point at the December 31, which is called is relevant for the net financial position.

Pietro Sanini, Chief Executive Officer, WeBill: Okay. Let me start for for the next for for the last point. For the next for the net financial position, as I told before, we expect to cash in all the advanced payment for the awarded projects we got in the first half. Other projects will be close to be disclosed in the coming weeks. Then there are some very important cash in coming from the past, so coming from a contract and the work in progress that are still to be paid by the clients.

So we have, of course, a main bridge. This is why we confirmed the guidance and we are optimistic on the target for the next financial position. And the same in terms of production and

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: let

Pietro Sanini, Chief Executive Officer, WeBill: me say, marginality as Pietro told before, we have many action in place in terms of efficiency and in terms of improving keeping the improved marginality that we’ve got in the first half.

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: Okay. Last question is, the market knows that for

Pietro Sanini, Chief Executive Officer, WeBill: the full year results, you

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: are probably going to present a three year business plan. You know? That’s a three year business plan. You have exceeded by far the

Pietro Sanini, Chief Executive Officer, WeBill: 2,025

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: more than two years ago. So that that’s fine. My question is, what we we don’t want to clearly to

Pietro Sanini, Chief Executive Officer, WeBill: have any kind of figure now, but can

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: you provide a flavor on your ambition for the next three years also maybe in relation to the potential award of the machine upgrade? And potentially, do you have any kind of ambition to enter Germany?

Pietro Sanini, Chief Executive Officer, WeBill: Yes. Pietro mentioned before, we are looking at the opportunity in Germany. We are looking at the defense opportunities. The water segment, it would be one of the core development actions that we would take in order to expand not only our EPC business expertise, but also some investment in development in this huge segment, huge business and together with some major players in the financial investment. Think that this is a good deal of interest of everyone.

As we said, the growth is important because, of course, the size does matter. But the most important thing is the financial structure of the company. So delivering cash generation is more important than the growth. The growth, as you have seen in our number, not negligible. One, we have grown on the P and L significantly.

And the market is booming, so we have not a problem of growth. We are not facing a scarcity of new projects or interesting projects into the future. There is an incredible an incredible numbers of projects around the world that are our our interest that that attracts our capabilities and confidence. But the thing is that we cannot take everything because we have to keep a company that is growing sustainable growth. This is what we we are saying in this in this presentation that we are strengthening the capital video, a company not only following the market.

The market is enormous. It’s booming. There are enormous quantity of products everywhere, and that this is not the problem. The problem is that we have a company which is now targeting, let’s say, more than than 30 or more than €12,000,000,000 in in revenues, which is outside, which is unprecedented in Italy, which are very large industrial players, manufacturing industrial players, not only related to construction, it’s one of the largest manufacturing company in our country. And we have to be sustainable in the future.

We have to train our people. We have to look at our organization. We have to follow-up the growth and to go ahead and to prevent problems. So we have to work on this and we have to work on the financial structure. So the market is absolutely not a problem over the next coming years.

And the size also is not the only single important parameters. What is it is to make a very sound company. We want to obtain the level of being investment grade. We are fortunately started with financial discipline. So we think that the growth is in.

We have an important growth not only in terms of P and L but also in terms of the market cap, we are delivering what we promised. And I think that our guidance for the year represents a significant growth in all the main yes. So looking forward, if you look at the the Bridge Of Messina, it’s a transformational transformational project, not only for we did, but also for the country. It is a word tension everybody is looking at this grid. Everybody is asking us about this grid.

We have decided not to talk about it and not to put inside our our numbers even if we are very close, I have to say, to to the date in which we will be approved by by all the the latest, let’s say, procedural government of the of the of the government, which is required. It is the cheapest that is foreseen into the next coming days. We have done everything. We have done all the design, all the documents, all the preparation is done, all the people is that is everything The the the team is ready on all their rooms working already on it, but we do not account for that.

It is it is maybe sometimes here, as seen on the press, that we also collect some larger share of this bridge in the market. We could change the part of it. It’s now we build it as a very larger shareholder of the Bucina Bridge consortium. So I think that for us is a very important project. And if if, as as I imagine, we will start to to to work on the Mucina Bridge, of course, we have to dedicate time and effort to this very large project and this will take some time also to to to follow this world record bridge that is a game changer for Italy, for the technology of Italy, and I know also for, I think, also for for we did that we have a different perception around the world as the single largest builder of high complex infrastructure around the world.

Regarding the ForEx, budget assumption both P and L and balance sheet was $1.12 euro. Thank you. Thank you, Matthew. So moving to the next one.

Conference Operator (Tancoros), Call Moderator: The next question is from Emmanuel Agamacci, Equita. Please go ahead.

Matteo Boriczoni, Analyst, Kepler Cheuvreux: Yes. Good morning, everybody. A couple of questions. If you prefer, we can go one by one. Maybe it’s a little bit easier.

Pietro Sanini, Chief Executive Officer, WeBill: Okay. That’s perfect.

Matteo Boriczoni, Analyst, Kepler Cheuvreux: Starting from a quick one on the CapEx side because you mentioned, let’s say, new target of $1,000,000,000 or $203,100,000,000 dollars short versus the previous target. Just to understand, are they savings or postponement to 2026?

Pietro Sanini, Chief Executive Officer, WeBill: Well, it’s both of them, of course. It’s a mix of it. It’s depending on the different timing of execution of certain type of jobs and starting of projects. So they are reflected in the timing of the CapEx, which was foreseen at the beginning of the year when we made the budget. So we have around a 100,000,000, let’s say, more or less of savings and the rest of it is not anticipated to you to maybe get into early.

It is, let’s say, a postponement of it into the future.

Matteo Boriczoni, Analyst, Kepler Cheuvreux: Very clear. And the second one is on the, let’s say, the natural use infrastructure spending because what we have seen in the Italian press is that the Messina Bridge and the Genoa Breakwater could be among the potential project, including the Intesa Nato definition. So can you, let’s say, give us more color on this opportunity for you? And do you see or do you think there are other projects that might be included in Italy in that specific definition of dual use infrastructure spending?

Pietro Sanini, Chief Executive Officer, WeBill: Yes. Yes. Thank you for the question. It is an interesting market that opens up for not only for Italy, but for all the countries that made part of the major. Of course, you you may imagine that the resilience of a country and defense of a country also rely on their infrastructure and how they can move with logistics, hospitals, water and whatever else.

But this is a matter that relates to the capacity of the countries to finance those projects. We are talking about projects that are already in the pipeline, that are already financed, as you say, the the big old machine acquisitions. Apart from being a dual use or not, it is it is an infrastructure which is completely financed by the balance sheet. So this will make an extra extra room for those type of infrastructure into the balance sheet of the country for us in some additional market, but it’s not related to the to the quality of the actual investment. I think that we will have this possibility will give us a boost for the future pipeline more than for the, let’s say, the short term pipeline.

Of course, this will let countries to do other things because if they are not right to spend money on banks or missiles and they can also spend on infrastructure that people need. This is, of course, those in a more sustainable expenditure.

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: Thank you very much.

Pietro Sanini, Chief Executive Officer, WeBill: Thank you, Laurent.

Conference Operator (Tancoros), Call Moderator: The next question is from Alessandro Torpala, Mediobanca. Please go ahead.

Emmanuel Agamacci, Analyst, Equita: Yes. Hi. Good evening. I have questions. Okay.

The first one is on the Australian operations. So basically, reported a very strong sales growth in the first half, well above 40% year on year. Can you give us the same update on how the execution of the major project is proceeding here, but also the kind of update on the profitability trend in this in this country? That’s the first question. Thanks.

Pietro Sanini, Chief Executive Officer, WeBill: I really nothing special to say about the failure going well. We have very good relationship with our clients. We are working together to to work the achievement of those products, you know. So there’s no no. No We week with two point zero is now well ahead.

We we have had, maybe some some, let’s say, environmental or or permit or or other problems is now fully sold. I think I’m telling that we have very interesting market is one of the markets in which I think that we will grow further. We have, as you know, the platform of trust that makes us being Australian. We are based in Perth. And with craft, we are an Australian partner, not only a company which is owned which is owned by a by a, let’s say, Italian or or international company.

So I think that Australia for us is a domestic market. It’s part of the domestic market. Like you said before, we build it Australia for for craft and there is an enormous interest in doing new projects for energy, which is, let’s say, very important for the government as a whole, but also for the state for development for the for for coal. I need to in a sustainable energy that the industry is requiring. But think that to us, it remains very important market and everything is going in the right direction now.

Let me add just some figures. In the 2025, we achieved around 2,000,000,000 of revenues coming from Australia. Overall, we have a double digit EBITDA margin in Australia and more than 50% of the contracts in as a cost plus approach. Okay. Okay.

Emmanuel Agamacci, Analyst, Equita: Thanks. Thanks. And then maybe the second question The

Pietro Sanini, Chief Executive Officer, WeBill: second question yeah. The

Emmanuel Agamacci, Analyst, Equita: second second question question

Massimo Ferrari, General Manager, Corporate and Finance, WeBill: is very briefly from

Emmanuel Agamacci, Analyst, Equita: The US side. Okay? Because we already touched Italy. So in Italy sorry. In The US, we saw a very, let’s let’s say, a negative contribution, okay, from JVs is still there, okay, in the in your in the ’25.

Pietro Sanini, Chief Executive Officer, WeBill: You see you see in the in the minority, please?

Emmanuel Agamacci, Analyst, Equita: Yes. Yes. So can you give us an an update also here on the country? Because I remember that your target was to, at a certain point, also to do the new project, okay, to to reach a sort of breakeven.

Pietro Sanini, Chief Executive Officer, WeBill: So can you help us to yeah. Thanks. We we confirm what we told to all the investors, all the financial stakeholders, the new pipeline, the new backlog that we acquired since two years ago is profitable and cash flow generator. So we are managing the legacy projects coming from the past. We already put also in the first half twenty twenty five some losses coming from all the contracts in U.

S. But we are seeing we are looking at the end of the tunnel and we would like to have in late twenty twenty five or beginning of next year the breakeven. Also in order to start to enlarge the capability in terms of operation for main and U. S. Business.

The market is huge. As you know, there are some constrain in terms of further budget, but there are huge amount of money at state level and mainly at private level for the t three projects. Okay. Thanks. Yes.

Thank you, Antonio.

Conference Operator (Tancoros), Call Moderator: The last question is from Eric Coco, Intermonta. Please go ahead.

Alessandro Torpala, Analyst, Mediobanca: Yes. Good morning. I have two questions. The first is on the Nessia Bridge, and another one is on M and a. So on the Nessia Bridge, I’d like to know, first of all, if you will consolidate line by line the Eberlink consortium.

And then the question is, I’m trying to understand the impact of this project in your numbers. So what kind of impact you assuming that the contract would be signed by the end of this year, what impact do you expect next year on the P and L? I think it will be small and then growing above, let’s say, 1,000,000,000 sales per year. But then also on the cash side, the question is, if you think that the project will be cash positive in each year until completion because I don’t know how the down payments would work. For example, you could have the down payments this year and then wait work two years, in this case, you will have big swings in working capital.

So if you could say something on the working capital profile of this project and how this will impact Wibi. But also, if you could share some information on the impact on the P and L side, so what kind of impact do you expect next year and then in coming years? And then the second point and last point on the Mestina Bridge. I would like to know if there would be CapEx associated with the project, so kind of investment in new equipment or such equipment that you will do to execute this project. And then the second question on the M and A.

I would like to know if, let’s say, in the next year, you will focus on decreasing the gross debt or you are looking at M and A with a balance sheet today. So if you if if we could expect also some m and a move from within. Thank you.

Pietro Sanini, Chief Executive Officer, WeBill: Well, I think it’s not really m and a. We just probably I didn’t make it clear the fact that we want to sustain the cash generation and the soundness of our balance sheet numbers. So I think the M and A, we are not targeting people, say, another company like us. We are not looking at that. We have enough competence, enough people, enough markets where this this thing does not add value at the moment.

What we are looking at is is some suppliers. Some suppliers of particular services who may use redundancy around the world and so we are looking at more companies that can help us to deliver confidence and technical skill and also availability of those services for us around the world. But they are talking about a very small company. So not significant from the point of view of cash absorption and most probably could be done on on paper paper exchanges. So let’s say, on on on something based on the fact that they they become part of the group.

So one this thing about M and A. For the Bridge Of Messina, as you know, we have decided not to put in our book, not to put in our project, not to put in our portfolio and not to talk in the case about the breach for for a number of reasons. First of all, that we have not signed, let’s say, this the former contract. So we cannot talk about something that is not formalized, but not of course at the new stage. As you know, the the numbers are probably, so we are talking about the contract of around 11,500,000,000.0, of which we have a very large share as a code.

And that have, of course, some investments, but there are also like the low proceeds that was to be able to take the advance payment and down payment from the client. So I think that from the point of view of the cash generation, when you receive the advance payment, there is a positive impact. And then the beginning of it, it will be, of course of course, cash positive. Then in in the rest of the of the production, the cash will be will be released and and consumed after the investment goes on and the production goes on. So this is a normal life cycle of any credit.

So I don’t see any special difference apart from the fact that the technical record that this bridge has. But from the point of view of management and from the point of view of the structure of the project in relationship with the P and L of the balance sheet is exactly a normal product. Size, it is important, but the rest of it is very similar to any other. And regarding the consolidation, we will give you more details in the coming weeks.

Alessandro Torpala, Analyst, Mediobanca: Okay. If I may follow-up on this, the €11,500,000,000 is just the cost of the bridge itself. But then I think there are ancillary works, and I read that these ancillary works would be around 1,500,000,000.0. So let’s say, we’d be involved just in the 11,500,000,000 let’s say, tender for the bridge or you will also get some works from the 1,500,000,000.0 ancillary works. And then if you may, the Yes.

Pietro Sanini, Chief Executive Officer, WeBill: The ancillary works as part of is part of the projects. Also, ancillary works are part of the project. Of course, this is the figures that they go on the stage. Is the the all of the projects are including also also the cost of the Ponte De Vecina, the appropriation of the areas, everything is inside these figures. But the contract, as I told you, is foreseen by the role.

So this is the size of the contract, then there will be the different attachment or variation that will be inherent to the project.

Alessandro Torpala, Analyst, Mediobanca: Okay. Thanks for the clarification. And the last one is the kind of profitability you expect from this project. At the end, it’s in one of your local markets. You have no idea.

So let’s say

Pietro Sanini, Chief Executive Officer, WeBill: We never comment project by project profitability before obvious reasons, but also because we always refer to to a portfolio system. We have more than 170 projects that are going around. So far, no one is as you remember, the 10 largest projects that we build makes less than 40%, around 40 something percent of the total revenues. So we we try to keep any of those projects into the revenue scale of being one of the of the of the of the numbers. So not the single product that changes.

Now now the the revenue is not the profitability of the company. So we keep the portfolio in front of us and the Ponte in the machine or whatever it will be from the technical point of view, reputation, etcetera, will be one of the progress of the 170 that we make around the world. Okay. Thank you. Thank you very much.

Conference Operator (Tancoros), Call Moderator: There are no more questions registered at this time. Gentlemen, I hand you back to mister Farrini and mister Ferrari for any closing remarks.

Pietro Sanini, Chief Executive Officer, WeBill: There’s no questions. So let’s say thank you to all of of you for for listening to our attending to our conference call. All the best for you and for your holidays for coming in in few days. Thank you. Thank you very

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