Sparks - AVAX

AVAX Group reported a robust set of Q125 results, with group revenue up 23% y-o-y to €144.5m, driven by new projects entering accelerated phases of implementation. Group EBITDA increased 6.4% y-o-y to €26.2m, due to continued increased profitability in the company’s construction segment, which saw EBITDA margins grow from 10.4% at FY24 to 13% at Q125. This increase in margin was driven by both revenue growth in the segment and new projects offering greater returns. PBT increased 114.7% y-o-y to €16.8m, while net profit increased 46.6% y-o-y to €11.9m.

AVAX continues to be well positioned for the future with its backlog totalling c €3bn at Q125, with new projects offering greater level of profitability. Group net debt (including equipment leasing) increased by €16.9m from FY24 to €254.3m. This increase in net debt was due to increased capital requirements for the Flyover public-private partnership and increased working capital needs on the back of the company’s revenue growth in the quarter. Despite this, net debt/EBITDA remains relatively low at c 2.4x, marginally up on FY24 at 2.3x.