Strong Performance Indicators for MT Højgaard Holding A/S
MT Højgaard Holding A/S has successfully established a foundation for growth in 2025, exhibiting promising financial results in the first quarter. Consolidating its progress, the company has notably decreased losses associated with terminating international activities, focusing on its strategic development areas.
Impressive Financial Growth
The company reported an impressive revenue increase of 14%, reaching DKK 2,625 million. This growth can be attributed to heightened operational activities and accelerated project deliveries. Both MT Højgaard Danmark and Enemærke & Petersen experienced substantial double-digit growth rates, particularly in civil engineering, infrastructure sectors, and collaborative partnership projects.
Operating Profit and Earnings
Operating profit, or EBIT, saw a modest rise of 5%, amounting to DKK 99 million. MT Højgaard Danmark benefitted from significant efficiency and high capacity utilization, alongside the reevaluation of various projects. Conversely, Enemærke & Petersen’s earnings declined as anticipated. The company's continued operations maintained a steady profit after tax at DKK 71 million. Moreover, losses incurred from discontinued operations dramatically decreased from DKK 68 million to DKK 13 million, following the cessation and closure of certain international activities.
Positive Cash Flow Trends
Cash flows from operating activities reflected an encouraging turnaround, improving from an outflow of DKK 45 million to a positive inflow of DKK 39 million.
Growing Order Intake
The order intake has shown a consistent upward trend for four consecutive quarters, fueled by vigorous tendering activities, which are expected to continue strengthening in the following quarters. The order intake surged from DKK 1.3 billion to DKK 2.6 billion, with both business units contributing to this growth.
Order Book Stability
The order book at the conclusion of the quarter stood robustly at DKK 11.8 billion. Additionally, the company has uncontracted awarded orders valued at DKK 0.5 billion, strategic partnerships in construction estimated at DKK 5.1 billion, and joint ventures worth DKK 0.8 billion, demonstrating a substantial pipeline for future projects.
Outlook for 2025
MT Højgaard Holding A/S maintains a steadfast outlook for the year, forecasted revenue is approximately between DKK 10.0-10.5 billion, underpinned by a solid order book. At the close of March, a remarkable 85% of the expected annual revenue has already been contracted.
Forecast for Earnings
Operating profit is projected to range from DKK 400-450 million. While ongoing construction, refurbishment, and service projects are anticipated to hold steady, non-recurring income, particularly from land sales, is expected to be substantially lower this year. With a forecast for significantly reduced losses in discontinued operations and stable tax percentages and financial conditions, the company expects a greater portion of operating profit to positively impact the net income for the year.
CEO Rasmus Untidt expresses optimism, stating, 'We have had a good start to the year with stable operations, successful order book execution, and great access to new projects. The winding-up of our international activities is progressing, and we have initiated new steps to streamline the Group by integrating MT Højgaard Property Development into MT Højgaard Danmark. Our commitment remains focused on enhancing project execution and improving profitability in Enemærke & Petersen.'
Contact Information
For further inquiries, CFO Dennis Nørgaard can be reached at +45 31 21 68 72. Additionally, he will present the interim report on a conference call, scheduled for 9 May 2025 at 10:00 a.m. (CEST).
Frequently Asked Questions
What were the key financial highlights for MT Højgaard in Q1 2025?
The company reported a 14% increase in revenue, reaching DKK 2,625 million, and an EBIT profit of DKK 99 million.
How did the order intake change during the quarter?
Order intake rose significantly from DKK 1.3 billion to DKK 2.6 billion over the quarter, demonstrating strong demand.
What are the profit expectations for 2025?
MT Højgaard expects an operating profit between DKK 400-450 million, supported by ongoing projects and a healthy order book.
What steps is the company taking regarding discontinued operations?
The company has significantly reduced losses in discontinued operations from DKK 68 million to DKK 13 million.
Who can I contact for more information?
CFO Dennis Nørgaard is available for contact via telephone at +45 31 21 68 72.
