Hochtief AG

HOCHTIEF reported first-half 2026 sales of EUR 20.1 billion, up 13% FX-adjusted year over year, and operational net profit of EUR 480 million, up 35% year over year and 41% FX-adjusted. Operating cash flow improved by EUR 280 million in H1, or EUR 297 million pre-factoring; 12-month operating cash flow pre-factoring was EUR 2.4 billion, up EUR 396 million year over year; and net cash was EUR 72 million at June, up EUR 1.5 billion year over year. New orders were EUR 31.5 billion, up 25% FX-adjusted, and backlog reached almost EUR 85 billion, up 23% year over year. Management raised 2026 operational net profit guidance to EUR 1,025 million-EUR 1,100 million from EUR 950 million-EUR 1,025 million, and raised Turner’s 2026 operational profit before tax guidance to $1.4 billion-$1.46 billion from $1.3 billion-$1.35 billion. CIMIC 2026 operational profit before tax guidance was unchanged at approximately EUR 780 million-EUR 830 million, and Engineering & Construction guidance was EUR 125 million-EUR 140 million. Segment highlights included Turner sales of EUR 14.1 billion and operational PBT of EUR 551 million (+49% FX-adjusted), CIMIC sales of EUR 5.2 billion and operational PBT of EUR 236 million (+8% comparable), Engineering & Construction sales of EUR 800 million and operational PBT of EUR 55 million (+37%), and Abertis sales +5%, EBITDA +6%, and net profit pre-PPA of EUR 369 million.

Juan Santamaría framed the quarter as evidence that HOCHTIEF’s strategy is working, pointing to strong growth, expanding margins, and a record backlog. He repeatedly emphasized data centers, energy, critical minerals, defense, and Germany as long-duration growth markets where the group has structural advantages from scale, geographic reach, and integrated execution. His tone was upbeat and confident, especially on data center demand and the company’s ability to keep growing beyond 2026 and into 2027 and beyond.

The financial story was strong cash conversion, rising profitability, and a stronger balance sheet. Management highlighted H1 operating cash flow improvement of EUR 280 million, 12-month pre-factoring operating cash flow of EUR 2.4 billion, and a June net cash position of EUR 72 million, while also noting EUR 500 million of dividends paid in July, up 26% year over year. On capital allocation, Christa Andresky’s points were reflected in the Thiess buyout and disciplined deployment toward growth markets, but the transcript mainly contained CEO commentary rather than a separate detailed CFO presentation.

Analysts focused heavily on data centers, asking how much of the large Meta Louisiana and Canadian projects are in backlog, how long revenue will take to phase in, and whether bottlenecks, grid access, or local opposition could slow execution. Management said the projects sit partly in different “buckets” of visibility, with some already in design and some not yet in the construction backlog, and stressed that data center work can shift location rather than disappear. Questions also covered Turner margins, with management saying the 3.9%-around-4% level should keep improving through modularization, self-perform, and supply-chain integration, and Thiess, where management said full ownership should create financial synergies, particularly from refinancing and reduced leakage, adding roughly EUR 80 million annual earnings accretion from 2027 onward by their estimate.