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1. Company Snapshot

1.a. Company Description

HOCHTIEF Aktiengesellschaft engages in the construction business worldwide.The company operates through HOCHTIEF Americas, HOCHTIEF Asia Pacific, HOCHTIEF Europe, and Abertis Investment divisions.The HOCHTIEF Americas division provides building and transportation infrastructure construction services primarily in the United States and Canada.


The HOCHTIEF Asia Pacific division offers infrastructure construction, resource and mineral processing services, engineering and technical services, and maintenance services in the Asia-Pacific region.This division also undertakes public-private partnerships (PPP).The HOCHTIEF Europe division provides services primarily for infrastructure and building construction projects, as well as PPP in transportation, energy, social, and urban infrastructure.


It also offers engineering services, including virtual construction, and facility management; and designs, develops, builds, operates, and manages real estate and infrastructure.The Abertis Investment segment operates toll roads in France, Spain, North America, Brazil, Chile, and Mexico.The company also provides insurance products; and reinsurance products primarily for contractors' casualty and surety, subcontractor default, liability, and occupational accident insurance.


HOCHTIEF Aktiengesellschaft was founded in 1873 and is headquartered in Essen, Germany.HOCHTIEF Aktiengesellschaft operates as a subsidiary of ACS, Actividades de Construcción y Servicios, S.A.

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1.b. Last Insights on HOT

HOCHTIEF Aktiengesellschaft's recent performance was driven by a solid earnings report, which revealed more than meets the eye. The company's majority owner, ACS, Actividades de Construcción y Servicios, S.A., has a stabilizing effect. Additionally, AM Best affirmed the credit ratings of Stonefort Reinsurance S.A., a subsidiary of HOCHTIEF, with a stable outlook. This development underscores the company's financial stability. The recent earnings release likely provided investors with a positive outlook, bolstering confidence in the company's prospects.

1.c. Company Highlights

2. HOCHTIEF's Strong 9-Month Performance Driven by Strategic Growth Markets

HOCHTIEF reported a robust financial performance in the first 9 months of 2025, with group sales rising 24% to EUR 28.1 billion, primarily driven by strategic growth markets. Operational net profit increased 19% to EUR 537 million, while nominal net profit stood at EUR 656 million. Earnings per share (EPS) came in at EUR 2.15, beating analyst estimates of EUR 2.03. The company's operational PBT guidance for 2025 was upgraded to EUR 750 million to EUR 780 million, representing a 20% to 25% year-on-year increase.

Publication Date: Nov -07

📋 Highlights
  • HOCHTIEF Group Sales Surge: Group sales rose 24% to EUR 28.1 billion in 9M 2025, driven by strategic growth markets.
  • Turner’s Operational Profit Soars: Operational PBT jumped 60% to EUR 629 million, with sales up 38% to EUR 18.8 billion, fueled by data centers and healthcare.
  • Data Center Projects Accelerate: Turner secured USD 6B Pennsylvania and USD 15B Wisconsin data center contracts, with EUR 12B+ backlog in the U.S.
  • Abertis Traffic and Revenue Growth: Average daily traffic increased 2%, driving 6% revenue growth and 7% EBITDA improvement year-on-year.
  • HOCHTIEF Profit Guidance Raised: Operational PBT guidance lifted to EUR 750M–780M, a 20%–25% year-on-year increase, reflecting strong market execution.

Segmental Performance

Turner delivered an outstanding performance, with sales surging 38% year-on-year to EUR 18.8 billion, driven by growth in data centers, healthcare, and education. Operational PBT reached EUR 629 million, a 60% increase, with a margin of 3.4%, up 50 basis points year-on-year. CIMIC's performance was steady, with sales stable year-on-year and operational PBT of EUR 351 million, up 10% FX-adjusted. Abertis achieved a solid operational performance, with average daily traffic increasing 2% year-on-year, and revenues and EBITDA up 6% and 7%, respectively.

Strategic Focus and Growth Opportunities

HOCHTIEF's strategy is centered on capitalizing on attractive opportunities in strategic growth markets, including digital infrastructure, advanced tech, energy, critical minerals, and defense. The group has made significant strides in strengthening its presence in these markets, with a EUR 36.6 billion new orders level, a 19% year-on-year increase, and a EUR 70 billion order book, up 12% year-on-year. As Juan Cases noted, "the investment cycle in data centers will continue to grow, driven by demand, and the supply bottleneck will be a key factor in determining the growth trajectory."

Valuation and Outlook

With a P/E Ratio of 25.48 and an EV/EBITDA of 7.09, HOCHTIEF's valuation suggests that the market has priced in significant growth expectations. Analysts estimate next year's revenue growth at 11.7%. The company's strong performance, coupled with its strategic focus on growth markets, positions it well for future growth. The group's ROE of 87.65% and ROIC of 7.02% indicate a strong ability to generate returns on equity and invested capital.

3. NewsRoom

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HOCHTIEF's (ETR:HOT) Earnings Offer More Than Meets The Eye

Nov -14

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AM Best Affirms Credit Ratings of Stonefort Reinsurance S.A.

Nov -13

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HOCHTIEF Aktiengesellschaft (ETR:HOT) Analysts Are Pretty Bullish On The Stock After Recent Results

Nov -09

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Morgan Sindall and others win $3.9bn contracts at Sellafield

Oct -14

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Should You Investigate HOCHTIEF Aktiengesellschaft (ETR:HOT) At €229?

Sep -23

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Hochtief Americas

Expected Growth: 4.65%

Hochtief Americas' 4.65% growth is driven by increasing infrastructure investments in the US and Canada, a strong order book, and strategic acquisitions. The segment benefits from its diversified portfolio, including transportation, energy, and social infrastructure projects. Additionally, the company's focus on digitalization and sustainability initiatives enhances its competitiveness and attractiveness to clients.

Hochtief Asia Pacific

Expected Growth: 5.83%

Hochtief Asia Pacific's 5.83% growth is driven by increasing infrastructure investments in the region, particularly in transportation and energy sectors. Strong demand for urbanization and economic growth in countries like China, India, and Australia also contribute to the segment's growth. Additionally, the company's strategic focus on sustainable and digital construction solutions enhances its competitive advantage.

Hochtief Europe

Expected Growth: 4.73%

Hochtief Europe's 4.73% growth is driven by increasing infrastructure investments in Europe, particularly in transportation and energy sectors. Strong demand for urban development and renovation projects, coupled with a solid order backlog, contribute to the segment's growth. Additionally, the company's strategic focus on digitalization and sustainability initiatives enhances its competitive position, supporting long-term growth prospects.

Corporate

Expected Growth: 4.83%

Hochtief's 4.83% growth is driven by its diversified business model, strong order book, and increasing infrastructure investments. The company's focus on renewable energy, transportation, and urban development projects also contributes to its growth. Additionally, its strategic partnerships and acquisitions, such as the takeover of Abertis, have expanded its market presence and capabilities.

7. Detailed Products

Building Construction

HOCHTIEF provides building construction services for residential, commercial, and industrial projects, including new builds, renovations, and restorations.

Civil Engineering

HOCHTIEF offers civil engineering services for infrastructure projects, including roads, bridges, tunnels, and railways.

Infrastructure Concessions

HOCHTIEF provides infrastructure concessions services, including project development, financing, and operation of public-private partnerships.

Real Estate Development

HOCHTIEF develops and manages commercial and residential properties, including office buildings, shopping centers, and residential complexes.

Engineering and Planning

HOCHTIEF provides engineering and planning services for construction projects, including design, planning, and project management.

Facility Management

HOCHTIEF offers facility management services, including maintenance, repair, and operation of buildings and infrastructure.

8. HOCHTIEF Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

HOCHTIEF Aktiengesellschaft operates in the construction industry, where substitutes are limited. However, the company faces competition from other construction companies, which can be considered as substitutes.

Bargaining Power Of Customers

HOCHTIEF Aktiengesellschaft's customers are primarily governments and private companies, which have limited bargaining power due to the company's strong reputation and expertise in the construction industry.

Bargaining Power Of Suppliers

HOCHTIEF Aktiengesellschaft relies on various suppliers for materials and equipment. While the company has some bargaining power due to its large scale, suppliers also have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

The construction industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and gives HOCHTIEF Aktiengesellschaft a competitive advantage.

Intensity Of Rivalry

The construction industry is highly competitive, with many established players competing for a limited number of projects. HOCHTIEF Aktiengesellschaft faces intense rivalry from other construction companies, which can lead to lower prices and profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.73%
Debt Cost 8.83%
Equity Weight 19.27%
Equity Cost 10.26%
WACC 9.10%
Leverage 418.81%

11. Quality Control: HOCHTIEF Aktiengesellschaft passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ACS

A-Score: 6.9/10

Value: 5.8

Growth: 6.6

Quality: 4.4

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Balfour Beatty

A-Score: 6.5/10

Value: 5.8

Growth: 6.1

Quality: 4.5

Yield: 4.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
HOCHTIEF

A-Score: 6.1/10

Value: 5.3

Growth: 6.6

Quality: 4.8

Yield: 5.6

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Webuild

A-Score: 5.9/10

Value: 7.0

Growth: 6.6

Quality: 2.9

Yield: 5.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Budimex

A-Score: 4.5/10

Value: 2.4

Growth: 4.8

Quality: 5.4

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

314.8$

Current Price

314.8$

Potential

-0.00%

Expected Cash-Flows