Portuguese construction giant Mota-Engil reported a 54% increase in first quarter profits, with strong revenue growth across key regions. The company saw net income jump to 20 million euros versus 13 million the prior year, as sales rose 7% to a record 1.35 billion. Latin America sales led with a 9% gain, while growth also occurred in Africa and Europe. Earnings before interest and taxes (EBITDA) surged 22% to 196 million euros, and operating margins expanded across all business segments. Most significantly, Mota-Engil's order backlog reached an all-time high of 14 billion euros on the back of large infrastructure contracts in Angola, Mexico and Nigeria. This record contracted work provides visibility into continued revenue and profit expansion in the future.
Construction giant Mota-Engil reported a significant jump in first quarter profits, as major projects around the world drove strong sales. The Portuguese builder saw its net income rise by over 50% compared to the same period last year. It said that its order book hit a record 14 billion euros (USD 15.21 billion). Mota-Engil, which operates in 20 countries across Africa, Europe and Latin America, said net profit totalled 20 million euros for January to March, up from 13 million euros a year earlier.
Revenues from their diverse operations globally rose by 7% overall. Sales in Latin America, which is the main driver of the group's turnover, grew 9% to 713 million euros, while sales in Africa rose 6% to 356 million euros and in Europe increased 5% to 141 million euros.
This increase in turnover translated directly to the bottom line. Earnings before interest and taxes soared by 22% to 196 million euros, with margins expanding across all segments.
Perhaps most encouraging was the record high order backlog reported. Major rail infrastructure contracts, primarily in Angola, Mexico and Nigeria, pushed total contracted work to an all-time peak of 14 billion euros.
This ensured the company had considerable sales visibility well into the future. With a sizable portion of work already booked, Mota-Engil is well positioned for continued growth.
As one of the largest construction firms in operation globally, strong first quarter performance is a sign that Mota-Engil's multinational strategy is paying off. Leveraging major projects on multiple continents, they have momentum heading into the rest of the year.
Mota-Engil is 40% owned by the Mota family and China Communications Construction Company Ltd owns a 32.31% stake.
Advertisement
Facebook
Whatsapp
