Webuild 1H 2025 presentation slides: Record revenue growth and margin expansion

Webuild SpA (BIT:WBD) reported strong First Half 2025 results, with revenue increasing 22% to €6.7 billion and EBIT surging 65% to €375 million, driven by improved operational efficiency and margin expansion. The company solidified its financial position, achieving a positive net cash balance of €275 million and reducing gross leverage to 2.6x, leading to credit rating upgrades. With a robust €58.7 billion order backlog providing four years of revenue visibility and confirmed full-year guidance, Webuild is strategically positioned for sustained growth in global infrastructure, particularly in low-risk markets.

Analysis

Webuild SpA's first-half 2025 results demonstrate significant operational momentum and a strengthened financial profile. The company reported a 22% year-over-year revenue increase to €6.7 billion, but the more compelling story is in its profitability, with EBITDA growing 38% to €564 million and EBIT surging 65% to €375 million. This performance translated into material margin expansion, with the EBIT margin climbing to 5.6% from 4.1%, underscoring successful cost controls and a selective bidding strategy. The balance sheet has been substantially de-risked, evidenced by a gross leverage reduction to 2.6x from 5.5x in H1 2022 and a sixth consecutive semester with a positive net cash position, which stood at €275 million. This financial discipline has been validated by credit rating upgrades from both Fitch and S&P Global. Future revenue is well-supported by a €58.7 billion order backlog, providing approximately four years of visibility, with 90% concentrated in lower-risk geographies. With H1 new orders of €6.5 billion already exceeding 50% of the annual target and full-year 2025 guidance confirmed, the company is on a clear trajectory to meet its projections for over €12.5 billion in revenue and over €1.1 billion in EBITDA.

Key Decisions for Investors

• Given the strong beat on earnings, significant margin expansion, and confirmed full-year guidance, the minor stock price decline preceding the announcement could represent a buying opportunity for investors confident in the company's execution.
• Investors should monitor the company's working capital management in the second half of the year, particularly the receipt of advance payments on new orders, to ensure the net cash position strengthens toward the guided target of over €700 million.
• The de-risked balance sheet, validated by recent credit rating upgrades, combined with a large, geographically diversified backlog in sustainable infrastructure, positions the company favorably for long-term investors seeking exposure to global infrastructure spending and ESG-aligned themes.