This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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WeBuild SpA ( IMPJY ) delivered a strong first half with revenues of EUR6.7 billion, in line with the record level of the prior year, despite the cancellation of two major NEOM contracts.
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Profitability improved significantly, with EBITDA margin rising to 10.1% and EBIT margin to 7%, reflecting strict cost discipline and effective contractual solutions.
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The company maintains a robust financial position with a positive net cash of EUR110 million for the eighth consecutive semester and a stable gross leverage of 2.67 times.
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The order backlog remains robust at EUR47 billion for construction, fully covering 2026 revenue guidance, and the commercial pipeline is strong at over EUR108 billion.
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The proposed acquisition of Trevi is expected to generate significant synergies of EUR80-90 million in additional EBITDA per year, with a clear path to being accretive to group margins.
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The successful EUR500 million bond issuance in May was oversubscribed by five times, extending debt maturities and strengthening the financial profile with over 90% of debt at fixed rates.
Negative Points
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The cancellation of two NEOM contracts in Saudi Arabia reduced the order backlog by approximately EUR3.8 billion, impacting volumes and requiring absorption through diversification.
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Financial expenses increased by EUR93 million, including a one-off write-down of certain financial receivables and a deliberate trade-off of waiving interest to accelerate cash collections.
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The company took proactive decisions to derisk its portfolio, resulting in around EUR100 million in losses on investments related to projects in North America and Australia.
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Net cash decreased to EUR110 million from EUR363 million at year-end 2025, reflecting seasonal working capital absorption and around EUR210 million of CapEx in the first half.
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The 2026 EBITDA guidance of over EUR1.2 billion appears conservative, implying a significant slowdown in second-half profitability compared to the strong first-half performance.
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The Trevi acquisition will add around EUR500 million in initial financial debt, increasing leverage, although the company expects to manage this through synergies and cash generation.
Q & A Highlights
Q: Can you provide more details on the breakdown of the 80-90 million EBITDA synergies from the Trevi acquisition, and what is the expected timeline for achieving them? A: Pietro Salini, CEO: The synergies are highly visible, with over 60 million tied to work already in our current backlog and short-term pipelinethese are "plug and play." The remainder is a prudent estimate of cost synergies: around 10 million from joint procurement, equipment fleet optimization, and logistics, plus a further 20 million from leveraging shared services and standardizing central processes. The synergies will start from 2027 and are expected to be achieved on a yearly run-rate basis. Together with Trevi's own EBITDA, the transaction would bring an incremental EBITDA contribution of around 150 million to 170 million to the group.
Q: The EBITDA margin of 10.1% is above your usual 8-9% range. What is the mid-term sustainability of this margin, and what are the reasons behind this improvement? A: Pietro Salini, CEO: The strong 10.1% EBITDA margin in the first half reflects a particularly favorable project mix, including contributions from projects with higher profitability profiles. We continue to execute initiatives aimed at increasing profitability, including greater selectivity in new order intake, tighter project execution control, and continued focus on cost optimization. We still expect full-year 2026 profitability to improve compared to 2025, confirming the structural progress achieved by the group in recent years.
Q: Regarding the Trevi acquisition, will Trevi lose commercial opportunities outside the Webuild group by becoming a captive player? Also, what are the funding options for this deal? A: Pietro Salini, CEO: There are other successful examples of specialized foundation players owned by larger groups, such as VNC and ACS in Australia. Trevi will benefit from our much larger global platform and project pipeline, which is a key competitive advantage. We do not intend to change Trevi's identity; it will remain an Italian center of excellence serving both third-party clients and Webuild projects. Massimo Ferrari, General Manager, Corporate and Finance: The funding is currently debt with a reasonable cost in line with our average cost of gross debt. We expect to finance the acquisition through capital market sources, likely a bond issuance.
Q: The 2026 EBITDA guidance of over 1.2 billion seems conservative given the strong first half. Why is the second half expected to be lower? A: Pietro Salini, CEO: The lower second-half expectation is due to the job mix and normal seasonality in project schedules. The strong 10.1% EBITDA margin in the first half reflects a particularly favorable mix. We continue to execute our strategy aimed at increasing profitability, and we still expect full-year 2026 profitability to improve compared to 2025, confirming the structural progress achieved.
Q: What is your medium-term view on Saudi Arabia following the cancellation of the two NEOM contracts, and how is the project mix evolving there? A: Pietro Salini, CEO: Saudi Arabia is not just NEOM, and the market remains quite large. We have worked there for over 60 years and have a solid pipeline, including the recently completed Riyadh Metro Line 3 and the new Line 2 contract, with potential good news on Line 7 coming soon. We understand the rationale behind the cancellation given the enormous investment scale and current market timing. Saudi Arabia remains a very central part of the world for investment, and we will continue to serve the nation's infrastructure needs.
Q: Should the 700 million CapEx for 2026 be seen as a peak, given your increased focus on cash conversion? A: Massimo Ferrari, General Manager, Corporate and Finance: Yes, you can consider it as a peak. The first half CapEx was around 210 million, lower than expected while maintaining production. The level depends on the business mix, and this can occur also in the second half. Pietro Salini, CEO: Additionally, some investments related to the cancelled NEOM contracts have been cancelled, providing an upside on that part.
Q: Are you happy with the current organization of your Australian business, and do you see potential to crystallize its asset value, for example, through a stock exchange listing? A: Pietro Salini, CEO: We want to increase the size of our Australian business. Australia is investing enormously in sustainable energy, and Oceania, including New Zealand and Tasmania, is an important part of our expansion design. There is also a significant defense plan in which we are participating. We have 10,000 people working in Australia, making it our largest market after Italy, and it will most probably grow even further in the near future.
Q: Can you elaborate on the timeline for the Trevi synergies and quantify the weight of foundation work within Webuild's total revenues? Also, how do you view Trevi's exposure to emerging markets? A: Pietro Salini, CEO: We have around 1.5 billion of demand for Trevi's services in our business plan. The synergies will start from 2027 and are expected to be achieved on a yearly run-rate basis. Regarding the US market, Lane has already achieved its turnaround in 2025, with excellent commercial performance. The market is very interesting, and they are securing very profitable new jobs. We also see a lot of commercial activity in Canada with a very interesting pipeline for the new business plan.
Q: What is the outlook for the order intake in the second half of 2026, and what is the expected book-to-bill ratio? A: Pietro Salini, CEO: We have already secured 7.7 billion of new orders in the first half, representing a book-to-bill of 1.2 times. We entered the second half with a solid backlog of 47 billion and are well positioned on several additional opportunities. Other awarded projects are progressing through the design phase and will be added to the backlog once completed. As a result, we remain confident that a book-to-bill above one is achievable for the full year.
Q: Can you elaborate on the one-off items below EBIT, specifically the write-downs of receivables and interest from customers? A: Massimo Ferrari, General Manager, Corporate and Finance: The net profit was impacted by around 190 million of one-off items, which are non-monetary. The first part, around 90 million, is within financial expenses. Most of this is a deliberate trade-off in favor of cashby waiving
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
