Release Date: July 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total sales increased by 21.8% compared to the same period last year, reaching EUR1.7 billion.
- EBITDA rose by 13.2% year-over-year, indicating improved operational efficiency.
- Order intake for the first semester was EUR2.5 billion, a significant 62.4% increase from the previous year.
- The construction division's sales grew by 16.5%, with a strong presence in the US market.
- The industrial division saw a remarkable sales increase of 94.9%, driven by a focus on renewable energy projects.
Negative Points
- Cash consumption for the period was EUR128.7 million, indicating ongoing financial challenges.
- The company is still prioritizing deleveraging, highlighting existing debt concerns.
- Losses were reported due to negative exchange rate effects and an agreement with IFM, impacting financial results.
- The sale of non-core assets, including the services division, has been delayed, affecting the company's deleveraging plans.
- There is uncertainty regarding the capital increase, with ongoing negotiations and no finalized terms yet.
Q & A Highlights
Q: You mentioned the mandatory redemption of notes. Is this related to asset sales, specifically the 9.75% notes due in March 2025?
A: Yes, the mandatory redemption is linked to asset sales, particularly the deferred payment from the Old War Office. Additionally, the sale of the Montreal Hospital (CHUM) is expected to conclude by the last quarter of the year, contributing to this redemption.
Q: Will the $54.9 million proceeds from the CHUM sale be fully used against the 9.75% notes?
A: According to the terms and conditions, 80% of the proceeds from designated asset sales, like CHUM, will automatically reduce the outstanding notes. This is the company's current intention.
Q: Can you provide an update on the New York City contract?
A: Currently, there is no information indicating any issues with the New York City contract. We will verify and provide further details if necessary.
Q: When will the company announce the price of the rights for the capital increase?
A: We are in negotiations to finalize the underwriting of the capital increase. We expect to close and execute this by the end of the year, with details to be announced at the extraordinary general meeting.
Q: Is the company planning any Investor Day or Capital Markets Day related to the capital increase?
A: Yes, once the transaction and its structure are defined, we plan to engage with the market through an Investor Day or Roadshow.
Q: Does the company maintain its guidance for the year despite reported losses?
A: Yes, we maintain our guidance as the company's performance in terms of sales, EBITDA, and backlog aligns with our internal budgets and previous guidance.
Q: Are there any delays in the investment plan or red flags to be aware of?
A: The rotation of non-strategic assets remains a priority. The sale of the services division was postponed due to unsatisfactory offers, but we plan to continue the process next year.
Q: Will the company contact advisers to address the maturity of its debt?
A: While we engage with advisers regularly, we cannot disclose specifics due to confidentiality. We are considering all options, including contacting bondholders, to maximize company value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
