Mota-Engil, the Portuguese construction and infrastructure group, reported a 24% year-on-year increase in net profit to EUR 74 million for the first half of 2026, driven by a 10% rise in EBITDA to approximately EUR 500 million. Revenue grew 6% to EUR 2.0 billion, while the EBITDA margin held steady at 17%, matching the 2025 year-end level.
Free cash flow surged to EUR 159 million, a threefold increase compared with the five-year average from 2021 to 2025, representing 33% of EBITDA. Capital expenditure totaled EUR 185 million, or 6.4% of turnover, remaining below the 7% threshold. Net debt stood at EUR 1.99 billion as of June 30, 2026, an increase of EUR 20 million from year-end 2025, though excluding concession investments, net debt fell by EUR 61 million. Liquidity improved to EUR 1.4 billion from EUR 895 million a year earlier, while equity exceeded EUR 1 billion, providing 11% financial autonomy.
The company’s backlog reached a record EUR 17.7 billion, up EUR 4.1 billion from the prior period, offering more than three years of revenue visibility. New contracts signed after June pushed the figure beyond EUR 20 billion. Average debt cost improved to 7.1% from 7.6% in H1 2025, with local soft currency debt accounting for roughly 13% of total debt.
Geographic performance showed divergence, with Africa posting 11% revenue growth and a 25% EBITDA margin, supported by Nigeria and Angola. Latin America delivered 7% revenue growth, driven by Mexico and a doubling of contributions from Brazil. Europe’s performance was softer due to project timing and consignment delays, though the EBITDA margin remained at 8%. Contract mining, identified as a top-three global operator and the largest in Africa, generated over EUR 400 million in turnover during the period.
Mota-Engil highlighted key project developments, including a 30-year PPP concession for the Lobito Corridor in the Democratic Republic of Congo, valued at EUR 1.8 billion. The project, to be constructed and rehabilitated over seven years, is 25% equity-funded with financing backed by the U.S. International Development Finance Corporation. The company also secured a USD 100 million sustainability and carbon credits framework agreement with Trafigura in Malawi, with EUR/USD 50 million received and the remainder expected in 2027. In Brazil, Bahia Mineração remains under early-stage feasibility study, requiring multiple partners for engineering, financing, and equity if pursued.
For the full year 2026, Mota-Engil raised its outlook, forecasting revenue growth to exceed 10% year-on-year and EBITDA margin to reach at least 18%. The company targets a net profit margin of around 3% and reaffirmed financial discipline, aiming to keep capital expenditure below 7% of turnover, net debt to EBITDA below 2.0x, and gross debt to EBITDA below 4.0x. Shares rose 3.58% to USD 4.806 following the results.
