Técnicas Reunidas, S.A.

For the second quarter, TR reported revenue of EUR 1,478 million, EBIT of EUR 73 million, or 5% of sales, and net cash of EUR 344 million; management said there were 0 provisions in the quarter. For the first half, sales were EUR 3,061 million, up 12% year over year, and EBIT was EUR 104 million, including a EUR 45 million provision tied to Middle East conflict-related costs. Management maintained 2026 underlying guidance and said it still expects full-year revenue of around EUR 6.5 billion, implying about EUR 3.5 billion in the second half. They also said the company is targeting around EUR 8 billion plus of awards in 2026 and reiterated a 30% payout policy, with the first dividend from 2026 results.

Juan Llado emphasized that Middle East execution is moving back to normal and that customer payments remain unchanged and on time. He framed the quarter around three strategic pillars: Middle East investment momentum, the power strategy, and North America, which he said are positioning TR very well for future growth. His tone was upbeat and confident, repeatedly stressing that there is “more to come.”

Eduardo San Miguel highlighted the structural improvement in profitability over the last 18 months, saying it has been driven by stricter project selection, the SALTA strategy, and better execution efficiency. On the Middle East, he said the EUR 45 million provision remains the right estimate if the conflict ends in Q3, and explained it reflects the net effect of extra costs and expected recoveries from clients. He also said net cash improved to EUR 344 million from EUR 332 million a year ago, equity rose to EUR 622 million from EUR 564 million, the company plans to double the power workforce to about 1,500 people, and it remains committed to a 30% payout policy.

Analysts focused on whether the EUR 45 million provision is enough if Middle East disruption lasts longer, with management saying the estimate is based on a thorough analysis of the next three months and that it cannot responsibly guess beyond that. Questions also probed the mix shift toward lower-margin EPCm/power work; management said the blend could pressure the average margin, but it still targets 10% for EPC and around 30% for Services and expects higher absolute margins overall. On working capital, management said more awards should bring additional down payments and that year-end cash should be “by far better” than the June 30 figure.