HOCHTIEF: Initiation of Coverage- Dominating the Net-Zero Race with Bold Green Investments!

HOCHTIEF’s full-year 2024 financial results present a nuanced picture of the company’s performance and future outlook, reflecting both strengths and challenges that should inform an investment thesis with a neutral stance. On the positive side, HOCHTIEF reported substantial growth in several financial metrics, indicative of the company’s robust operational capabilities and strategic positioning. Group sales rose by an impressive 20% to EUR 33.3 billion. This growth trajectory aligns with the company’s strategic focus on infrastructure markets driven by unprecedented investment levels. Operational net profit saw a 13% increase to EUR 625 million, which exceeded guidance. The company’s cash flow from operating activities improved significantly, surpassing EUR 2.1 billion. This bolstered cash position allowed the company to end the year with a manageable net debt position, demonstrating effective financial management.