Significant Earnings Growth in the Third Quarter
MT Højgaard Holding A/S has reported a remarkable third quarter, with strong earnings and a promising outlook for the future. The company is effectively consolidating recent improvements in its financial performance, attributed to excellent order execution and robust operational strategies.
Review of Third Quarter Results
In the latest reporting period, the Group showcased noticeable progress, increasing its revenues. This upturn was fueled by positive developments in both MT Højgaard Danmark and Enemærke & Petersen.
- The company achieved a 6% increase in revenue, reaching DKK 2.6 billion.
- Operating profit (EBIT) rose by 3%, totaling DKK 126 million, with an operating margin of 4.9%.
- Profits after tax saw an improvement, moving from DKK 84 million to DKK 91 million, reflecting the strength of ongoing Danish activities.
- The discontinued operations reported a loss of DKK 32 million due to costs related to winding down activities in Greenland.
- Overall, the profit for the period transitioned from a loss of DKK 26 million to a gain of DKK 59 million.
Order Intake and Future Prospects
The order intake demonstrated significant growth, benefiting from various construction partnerships. The Group's order portfolio remains stable, well-diversified across different segments and geographies.
- Notably, the order intake increased by 35% to DKK 1.7 billion compared to the previous quarter, with Enemærke & Petersen experiencing a remarkable 64% rise.
- However, the order book at the end of September saw a 16% decline to DKK 11.7 billion, a consequence of high production levels and initial lower order intake earlier in the year.
- Additional opportunities include orders worth DKK 1.5 billion that are awarded but not yet contracted, and a substantial estimated future value of ongoing strategic partnerships.
Outlook for 2024
MT Højgaard Holding maintains an optimistic outlook for 2024 based on a solid performance in October and positive trends projected for the fourth quarter. The company upgraded its profit guidance, sustaining the forecast:
- Expected revenue aims to reach approximately DKK 10.5 billion, representing a growth rate of 7%.
- Operating profit (EBIT) is projected to be between DKK 440-460 million, an increase of 13-18%.
With a high order book and promising pipeline, the Group is well-positioned for continued success. By the end of September, 95% of anticipated revenue from construction and engineering was under contract, and any further land sales could positively impact earnings.
CEO's Perspective on Performance
Rasmus Untidt, CEO of MT Højgaard Holding, expressed satisfaction with the continued positive performance. He highlighted the healthy growth reported by MT Højgaard Danmark and Enemærke & Petersen, emphasizing effective project execution and the solid operating margin achieved during the quarter.
Company Contacts
For any inquiries, you can reach out to CEO Rasmus Untidt or CFO Dennis Nørgaard at +45 3121 6872 for further information and insights.
Frequently Asked Questions
What were the main financial highlights for MT Højgaard Holding in the third quarter?
The company reported a 6% increase in revenue to DKK 2.6 billion, a 3% rise in EBIT to DKK 126 million, and a profit after tax improvement from DKK 84 million to DKK 91 million.
How did the order intake change in the third quarter?
The order intake rose by 35% to DKK 1.7 billion, boosted by strong contributions from construction projects.
What impact did discontinued operations have on the results?
The discontinued operations resulted in a loss of DKK 32 million due to costs related to winding up activities in Greenland.
What is the profit guidance for MT Højgaard Holding for 2024?
The company expects revenue around DKK 10.5 billion with operating profit (EBIT) between DKK 440-460 million, reflecting a positive growth outlook.
How are the current projects and partnerships structured?
At the end of the third quarter, 37% of the order book was attributed to projects in multi-year construction partnerships, ensuring diverse and sustained business opportunities.
