MT Højgaard Holding A/S Reports Strong Q2 Earnings Growth
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MT Højgaard Holding A/S: Strong Earnings Growth in the Second Quarter
Second-Quarter Results
The ongoing Danish operations of MT Højgaard Holding showed sustained profitable growth during the second quarter, driven by consistent production levels and effective order book management. Earnings exhibited significant improvement, with the order intake trending upwards. The company divested its operations in Portugal and Africa, with Greenland remaining as the sole international focus.
- Revenue increased by 8%, reaching DKK 2.7 billion, primarily supported by strong performance in MT Højgaard Danmark.
- Operating profit (EBIT) saw a remarkable rise of 49%, amounting to DKK 124 million, with an improved operating margin from 3.4% to 4.7%.
- The after-tax profit for the continuing Danish activities rose from DKK 55 million to DKK 81 million.
- The loss from discontinued operations amounted to DKK 29 million, attributed mainly to the costs associated with winding up activities in Greenland, consistent with the previous year and lower than the first quarter of 2024.
- The profit for the period improved from DKK 28 million to DKK 52 million.
- The return on invested capital after tax for the six-month period surged by 29.7 percentage points to 51.3%, reflecting efforts to enhance earnings while minimizing invested capital.
Order Intake and Order Book
In the second quarter, MT Højgaard Holding achieved the highest order intake in five quarters, with a robust order book diversified across various segments, project sizes, and geographical areas.
- The order intake rose by 16% to DKK 2.8 billion, driven significantly by new projects in infrastructure, energy, climate, and the refurbishment of social housing. Enemærke & Petersen’s order intake grew by 32% compared to the second quarter of the prior year, while Højgaard Danmark's rose by 23%.
- Construction partnerships and collaborative projects represented 33% of the total order intake.
- As of the end of June, the order book stood at DKK 12.6 billion, with an additional DKK 0.9 billion in orders awarded but not yet contracted. This includes contributions from strategic construction partnerships with an estimated future value of around DKK 5.4 billion and joint venture orders valued slightly above DKK 0.8 billion.
Guidance for 2024 Maintained
MT Højgaard Holding is committed to maintaining its full-year guidance for 2024, reflecting the results of the first half of the year coupled with anticipated stable activity levels in the latter half.
- The revenue forecast remains between DKK 10-10.5 billion, indicating growth within the range of 2%-7%.
- Operating profit (EBIT) expectations continue to lie between DKK 400-425 million, representing an anticipated improvement of 3%-9%.
This outlook is bolstered by a solid order book, a strong project pipeline, and significant exposure to the growing segments of the market. Contracts have been signed covering 92% of the expected revenue from construction and engineering projects for the year.
Steffen Baungaard, CEO, commented, "We recorded a broadly-based improvement in our Danish activities during the second quarter. MT Højgaard Danmark maintained its strong momentum while both Enemærke & Petersen and MT Højgaard Property Development reported satisfactory performances. We are also advancing the winding up of our international activities, focusing now on developing favorable solutions in Greenland, where there is substantial interest in our assets."
Contact Information
For inquiries, please contact CEO Steffen Baungaard or CFO Rasmus Untidt at telephone +45 3121 6872.
Frequently Asked Questions
What were MT Højgaard Holding's revenue figures for the second quarter?
The revenue for the second quarter was DKK 2.7 billion, representing an 8% increase.
How did the operating profit (EBIT) change in Q2?
The operating profit (EBIT) rose significantly by 49% to reach DKK 124 million.
What is the company's order intake for the second quarter?
The order intake for the second quarter rose by 16% to DKK 2.8 billion.
What is the outlook for MT Højgaard Holding for 2024?
The company maintains its revenue guidance between DKK 10-10.5 billion and EBIT expectations of DKK 400-425 million.
Who can be contacted for more information about MT Højgaard Holding?
Inquiries can be directed to CEO Steffen Baungaard or CFO Rasmus Untidt at telephone +45 3121 6872.
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