Q3 23: Better than expected results, but restructuring weighs on order intake

Bilfinger announced robust Q3 results, with both revenue and EBITA surpassing the market’s expectations. EBITA outperformed by an impressive 17%, driven by strong performances across all the segments. Although there was a decline in order intake in the E&M International sector due to the ongoing restructuring in the USA, the German company reaffirmed its year-end outlook.

H1 23: Restructuring in the US is slowing down order intake

Bilfinger exceeded market expectations with its Q2 2023 results. While revenue was in line with expectations, EBITA outperformed by 15%, propelled by robust performances in E&M Europe and Technologies. However, E&M International faced challenges due to the ongoing restructuring in the USA. Consequently, theorder intake remained steady after a substantial increase in Q1 2023.

Q1 23: Order intake promising

Bilfinger’s Q1 2023 results beat the consensus, with organic order growth of 26% driven by inflation and strong demand momentum. Revenue increased by 12%, and EBITA (excluding special items) by 16%, resulting in a 10bp margin increase. All segments contributed to this growth in revenue, although E&M international’s EBITA remained negative due to legacy contracts.

FY22: growth and profitability to come

Bilfinger published a good set of FY22 results with 15% growth in revenue and a 140bp decrease in EBITA margin due to a one time-expense of €60m for the efficiency program and a strong basis of comparison. Going forward, the company announce its strategy to capture further growth while improving margins in the coming years.

Q3 22: additional costs in FY22 for the same FY24 target

Bilfinger published good Q3 22 figures with a significant increase in orders received and revenue, with the EBITA margin excluding one-offs at the same level as in Q3 21. All segments saw positive developments in the orderbook, with the sharpest growth at E&M International, thanks to the additional efforts put in since last year to increase the utilisation rate. For the full year, Bilfinger has guided for a sharp increase in revenues and operational EBITA but significantly lower net income due t

Q2 22: full-year guidance re-iterated

Bilfinger Q2 22 results. While revenue was above the company-compiled consensus (+4%), EBITA was a miss (-8%). However, due to 1/ the strong order intake, especially in Energy & Utilities and O&G end markets, 2/ a selective approach towards Technologies projects and 3/ the replacement of some major projects by new more profitable projects, the management is positive that the company can achieve strong growth in revenues and EBITA along with a margin improvement in H2. Hence, it has re-iterated t

Q1 22: Consensus downgrade expected

Bilfinger released its Q1 22 result. While the revenue was above the company-compiled consensus (€961m, +14% lfl and -5% vs consensus average), EBITA was a miss. After a €10m additional charge booked in relation with Russia, EBITDA stood at €9m, flat yoy (when compared to non-adjusted EBITDA) with a 20bps decrease in margin. Given that the management expects flat EBITA this year, we anticipate a consensus downgrade for 2022.

FY21: moving on from transformation

Bilfinger published a good set of FY21 results with 11% growth in revenue and an extraordinarily high EBITA margin (+210bp yoy), supported by gains from real estate disposals (€30m) due to a one-off of €18m in real estate disposal gains. Going forward, the company expects the good top-line trend to continue, driven mainly by the international and technologies businesses. The company also proposed a dividend of €1 along with a special dividend of €3.75 (expected by the market).

Q3 21: FY guidance updated but inflation worries

Bilfinger published good Q3 21 results with a 12% growth in revenue and the EBITA margin is extraordinarily high (+270bp yoy) due to a one-off of €18m in real estate disposal gains. Given the good results, the company has slightly updated its FY21 guidance.

Q2 21: lower debt and higher shareholder remuneration ahead

Bilfinger published Q2 21 results above market expectations with a substantial margin improvement which is expected to improve further in H2 21. As a result, the company has raised its adjusted EBITA margin guidance to 3%. The company has also unveiled its capital allocation plan (following the sale of Apleona), which includes early debt repayment of €109m, a special dividend worth €150m, share buy-back supto €100m and the rest for organic growth and bolt-on acquisitions.

FY20: shareholder remuneration back on track

Bilfinger published FY20 results slightly below our expectations. However, following the sale of Apleona in Q4, net income benefited significantly (€210m capital gain), resulting in a positive EPS instead of a negative one. No quantifiable guidance has been given for FY21, but management re-confirmed its 2024 targets. A dividend of €1.88/share is proposed, the additional €0.88 is to recover last year’s €0.12 dividend to a €1/share floor.

Q3 20: Bilfinger not up for sale

Bilfinger published disappointing results, with a 21% decline in revenues and a breakeven EBITA. The E&M International division was particularly weak due to the challenging environment (COVID-19 and elections), with a 55% decline in revenues. The most buzzworthy piece of information was that the CEO confirmed that Bilfinger is not up for sale. The company has reiterated both short-term and medium-term guidance.

Q2 20: HP contracts to offset new order decline going forward

Bilfinger has published its Q2 20 results. It has observed a decline of 15% in new orders received and a 29% decline in revenues organically. Given that the Oil & Gas market continues to be in trouble, Bilfinger may struggle with receiving new orders, especially for large projects. However, the Hinkley Point contracts will partly offset this. For the full year, Bilfinger has reiterated its outlook announced at the time of the Q1 results.

Q1 20: injured by cheapened oil and the pandemic

Bilfinger published its Q1 20 results which were negatively affected by disruptions and uncertainties due to the pandemic as well as the substantial reduction in the oil price (Oil & Gas represent a third of its total market). Management has cut the dividend to the statutory minimum level and has provided new guidance for 2020 with a revenue decrease of 20% and a positive adjusted EBITA.

FY19 - head and shoulders above FY18

The company has published its FY19 results which far exceeded the FY18 results. Even though there was a decrease in the orders received, the company has managed to increase its organic revenues by 6% and has positive unadjusted bottom-line items finally. It lags behind in terms of margin improvement but has shown significant SG&A improvement. While we believe that the company has performed below its set targets, we will update our target price to reflect its improved performance.

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Morning Note – 16 April 2024

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Plant Health Care - China distribution with AMVAC

Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car

Morning Note – 15 April 2024

discoverIE - Back to organic growth

discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli

Severfield - Multiple positives should excite investors

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear

Warns on brine supply costs

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

PROGRESSIVE: Severfield: Step change in European and Indian outlook

Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first

Clean and competitive fertiliser