MT Højgaard Holding A/S: Impressive Earnings Growth in Q2
Second-Quarter Results
During the second quarter, MT Højgaard Holding's ongoing operations in Denmark demonstrated continued profitable growth, thanks to steady production levels and effective management of the order book. The company saw a notable increase in earnings, with order intake on the rise. Following the divestment of its operations in Portugal and Africa, Greenland has become the company's sole focus for international activities.
- Revenue climbed by 8%, reaching DKK 2.7 billion, largely driven by strong performance from MT Højgaard Danmark.
- Operating profit (EBIT) experienced a remarkable increase of 49%, totaling DKK 124 million, with the operating margin improving from 3.4% to 4.7%.
- After-tax profit from ongoing Danish operations grew from DKK 55 million to DKK 81 million.
- The loss from discontinued operations was DKK 29 million, primarily due to costs related to winding down activities in Greenland, which is consistent with the previous year and lower than the first quarter of 2024.
- The overall 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 the company’s focus on enhancing earnings while minimizing invested capital.
Order Intake and Order Book
In the second quarter, MT Højgaard Holding achieved its highest order intake in five quarters, supported by a diverse order book that spans various segments, project sizes, and geographical regions.
- The order intake increased by 16% to DKK 2.8 billion, significantly driven by new projects in infrastructure, energy, climate, and social housing refurbishment. Enemærke & Petersen's order intake rose by 32% compared to the same quarter last year, while Højgaard Danmark's intake increased by 23%.
- Construction partnerships and collaborative projects accounted for 33% of the total order intake.
- As of the end of June, the order book stood at DKK 12.6 billion, along with an additional DKK 0.9 billion in awarded but uncontracted orders. 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, based on the results from the first half of the year and expected stable activity levels in the second half.
- The revenue forecast remains between DKK 10-10.5 billion, indicating a growth range of 2%-7%.
- Operating profit (EBIT) expectations continue to be between DKK 400-425 million, reflecting an anticipated improvement of 3%-9%.
This positive outlook is supported by a solid order book, a robust project pipeline, and significant exposure to growing market segments. Contracts have been signed covering 92% of the expected revenue from construction and engineering projects for the year.
CEO Steffen Baungaard remarked, "We saw a broad-based improvement in our Danish operations during the second quarter. MT Højgaard Danmark maintained its strong momentum, while both Enemærke & Petersen and MT Højgaard Property Development delivered satisfactory results. We are also progressing with the winding down of our international operations, focusing on developing favorable solutions in Greenland, where there is considerable interest in our assets."
Contact Information
For further inquiries, please reach out to 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.
