MT Højgaard Holding A/S Achieves Remarkable Growth
In 2024, MT Højgaard Holding A/S showcased their commitment to solid financial performance, achieving profitable growth for the sixth year in a row. The company successfully met their upgraded guidance, reflecting a robust operational framework.
Financial Highlights of 2024
The year reinforced MT Højgaard's standing in the construction industry:
- Revenue rose by 9% to DKK 10.7 billion, surpassing initial guidance of approximately DKK 10.5 billion. This growth was primarily attributed to positive performance in both MT Højgaard Danmark and Enemærke & Petersen.
- Operating profit (EBIT) surged by 25%, reaching DKK 486 million, exceeding guidance expectations of DKK 475-495 million. The EBIT margin stood impressively at 4.5%, bolstered by significant contributions from MT Højgaard Danmark.
- After-tax profit from continuing operations grew from DKK 305 million to DKK 357 million, despite increased tax liabilities impacting the financial outcome.
- Discontinued operations, primarily linked to former international activities, incurred a loss of DKK 168 million, although this amount indicated a decline compared to prior periods.
- Moreover, operating profit after tax showed an increase from DKK 104 million to DKK 189 million, demonstrating effective management strategies.
- In light of the robust performance, the Board of Directors has recommended a dividend payout of DKK 6.5 per share, which represents 27% of the annual profit.
Order Intake and Current Project Pipeline
After beginning the year rather slowly, order intake rebounded significantly over the following quarters:
- The company's order intake totaled DKK 9.0 billion, slightly down from DKK 9.9 billion in the previous year. This strategy involved selective project acquisition aimed at maintaining sustainable profitability.
- Notably, construction partnerships accounted for 33% of the total order intake, while civil engineering and infrastructure projects saw a remarkable doubling to DKK 2.4 billion.
- By year's end, the order book reached an impressive DKK 11.8 billion, complemented by uncontracted orders valued at DKK 1.6 billion, strategic construction partnerships valued at DKK 5.3 billion, and joint ventures worth DKK 0.8 billion.
Future Outlook for 2025
The company is optimistic about 2025, anticipating stable earnings driven by ongoing construction, refurbishment, civil engineering, and service projects. The strong order book and promising project pipeline lend credence to this optimism.
- Revenue expectations for 2025 range from DKK 10.0 to 10.5 billion, reflecting a slight activity dip.
- Operating profit projections stand at DKK 400-450 million, with earnings expected to mirror the previous year, though non-recurring income from land sales is predicted to decrease significantly.
- Following a strategic move towards winding down much of its international presence, the company forecasts a notable reduction in losses from discontinued operations.
With anticipated lower losses and stable tax percentages, the groundwork is set for an improved flow of operating profit to the bottom line in 2025. CEO Rasmus Untidt commented on the positive trajectory, stating, “2024 was a successful year for the Group. We have successfully concluded a five-year transformation, streamlining our operations to focus on the Danish market. We are positioned strongly to advance further.”
Contact Information
For further inquiries, CEO Rasmus Untidt and CFO Dennis Nørgaard can be reached at +45 3121 6872.
Frequently Asked Questions
What were the key financial results for MT Højgaard in 2024?
In 2024, MT Højgaard reported a revenue of DKK 10.7 billion and an operating profit (EBIT) of DKK 486 million, reflecting a 25% increase.
How did the order intake perform in 2024?
The order intake for 2024 was DKK 9.0 billion, with civil engineering projects showing significant growth, doubling to DKK 2.4 billion.
What is the outlook for MT Højgaard in 2025?
The company expects stable earnings with revenue forecasted between DKK 10.0 and 10.5 billion, despite a slight decrease in activity levels.
What steps is MT Højgaard taking regarding international operations?
MT Højgaard is winding down most of its international activities as part of its strategic focus on the Danish market, which has led to expected reductions in losses from discontinued operations.
Who can be contacted for more information about MT Højgaard?
For inquiries, CEO Rasmus Untidt and CFO Dennis Nørgaard can be contacted at +45 3121 6872.
