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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 has been positively driven by securing significant infrastructure projects. Notably, the company landed a $273m deal for an MRI research centre in Kiel, uniting Kiel and Hamburg research units in a 6,250m² space. Additionally, a Hochtief-led JV secured a $529m road project in Duisburg, involving substantial motorway interchange changes. These projects showcase the company's capabilities in transportation infrastructure construction, an area with growing demand for smart and sustainable systems.

1.c. Company Highlights

2. HOCHTIEF's Strong FY2025 Results: A Foundation for Sustained Growth

HOCHTIEF reported a robust financial performance for FY2025, with revenues growing 15% to EUR 38 billion, driven by strong growth in key verticals. The company's operational net profit increased by 26% to EUR 789 million, exceeding guidance, with nominal net profit up 16% to EUR 902 million. Earnings per share (EPS) came in at EUR 2.15, beating analyst estimates of EUR 2.03. The company's operational performance was led by Turner, with sales increasing 34% to EUR 25.8 billion and operational PBT reaching EUR 921 million, up 62%. As Juan Cases, CFO, noted, "Turner is not reaching capacity limits," highlighting the company's ability to continue growing.

Publication Date: Feb -22

📋 Highlights
  • Operational Net Profit Surge: Increased by 26% to EUR 789 million in 2025, surpassing guidance, with nominal net profit rising 16% to EUR 902 million.
  • Sales Growth Acceleration: Total sales rose 15% to EUR 38 billion, driven by Turner’s 34% sales increase to EUR 25.8 billion and Engineering Construction’s 9% growth.
  • Record Order Backlog: Reached EUR 72.5 billion, with EUR 16.8 billion in new data center orders and EUR 16.4 billion in data center backlog (plus EUR 10-12 billion unaccounted).
  • Strategic Market Expansion: EUR 600 million allocated to AI, digital, and tech sectors over three years, including a EUR 685 million U.K. nuclear infrastructure contract.
  • Dividend and Guidance: Proposed 2025 dividend of EUR 6.6/share (26% increase) and 2026 operational net profit guidance of EUR 950–1,025 million (20–30% YoY growth).

Segmental Performance

The Engineering Construction segment saw sales growth of 9% and operational PBT up 28% to EUR 98 million. CIMIC's sales were stable, with a 5% increase in operational PBT to EUR 473 million. The company's strong order backlog, which reached an all-time high of EUR 72.5 billion, provides a foundation for continued growth, with analysts estimating revenue growth of 11.6% for FY2026.

Valuation and Returns

HOCHTIEF's current valuation metrics indicate a premium, with a P/E Ratio of 33.74 and P/B Ratio of 24.01. However, the company's Return on Equity (ROE) is a strong 85.89%, and Return on Invested Capital (ROIC) is 10.24%. The Dividend Yield is 1.29%, with a proposed dividend for 2025 of EUR 6.6 per share, a 26% increase. The EV/EBITDA ratio is 13.5, indicating a reasonable valuation relative to earnings.

Growth Prospects

HOCHTIEF is advancing in strategic growth markets, including AI, digital, and tech, with a strong competitive position in data center engineering and construction. The company has secured EUR 16.8 billion of new orders in 2025 and is expanding its presence in energy, critical minerals, and defense. With a strong financial foundation and unique position as a global end-to-end provider of infrastructure solutions, HOCHTIEF is well-positioned for sustained high-quality growth and long-term value creation.

3. NewsRoom

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Hochtief AG (HOCFF) Q4 2025 Earnings Call Highlights: Record Profits and Robust Order Backlog ...

Feb -21

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HOCHTIEF lands $273m deal for MRI research centre in Kiel

Feb -12

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Global Road Maintenance Market Study 2026 with Company Ranking and Benchmarks Featuring Vinci, CRH, Group ACS, Hochtief, Eiffage and More

Jan -28

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Transportation Infrastructure Construction Market Report 2026-2030 Featuring China Communications Construction Co., Vinci, CK Hutchison, CRH, Hochtief and More

Jan -28

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Is There An Opportunity With HOCHTIEF Aktiengesellschaft's (ETR:HOT) 33% Undervaluation?

Jan -21

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HOCHTIEF (ETR:HOT) shareholders have earned a 93% CAGR over the last three years

Dec -29

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Hochtief-led JV secures $529m road project in Duisburg

Dec -17

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

Nov -14

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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: 6.6/10

Value: 4.9

Growth: 6.6

Quality: 4.5

Yield: 6.9

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Balfour Beatty

A-Score: 6.3/10

Value: 5.2

Growth: 6.1

Quality: 4.8

Yield: 3.8

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Webuild

A-Score: 5.5/10

Value: 6.8

Growth: 6.3

Quality: 3.0

Yield: 5.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
HOCHTIEF

A-Score: 5.5/10

Value: 3.7

Growth: 6.6

Quality: 4.3

Yield: 5.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Budimex

A-Score: 5.3/10

Value: 2.0

Growth: 4.8

Quality: 6.0

Yield: 8.8

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Arcadis

A-Score: 4.3/10

Value: 5.4

Growth: 6.3

Quality: 5.9

Yield: 3.8

Momentum: 0.0

Volatility: 4.3

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

399.0$

Current Price

399$

Potential

-0.00%

Expected Cash-Flows