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1. Company Snapshot

1.a. Company Description

Técnicas Reunidas, S.A., an engineering and construction company, engages in the design and management of industrial plant projects worldwide.It operates through Oil and Gas, Power, and Other Industries segments.The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants.


The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste, and biomass technology, as well as plant operation and maintenance services; and supplies turnkey plants.The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks, and sports centers.It is also involved in the property development and machinery wholesale business; and provision of inspection, quality control, and technical consulting services.


The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972.Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.

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1.b. Last Insights on TRE

Técnicas Reunidas' recent momentum is driven by its robust earnings profile, with a 45% sales increase and 75% rise in net profit. The company has secured notable contracts, including a FEED contract for a Texas LNG project, and is investing in future competitiveness. Its exposure to large industrial projects and strategic alliances, such as the partnership with KBR, are expected to fuel growth.

1.c. Company Highlights

2. TR's 2025 Earnings Report: A Year of Strong Growth and Positioning

TR reported a robust financial performance in 2025, with sales reaching EUR 6.5 billion, a 45% increase compared to 2024. EBIT reached EUR 291 million, a 61% increase, resulting in an EBIT margin of 4.5%. Net profit amounted to EUR 156 million, a 75% increase compared to the previous year. Earnings per share (EPS) came in at 0.637, beating analyst estimates of 0.595.

Publication Date: Mar -09

📋 Highlights
  • 2025 Financial Growth: Sales surged to €6.5B (+45%), EBIT reached €291M (+61%), and net profit hit €156M (+75%).
  • 2026 Guidance: Targets €6.5B revenue, EBIT over €325M (margin >5%), and net profit near €200M.
  • Middle East Leadership: Secured €3.1B Lower Zakum project, reinforcing power business dominance.
  • Services Expansion: Aims to grow from €333M (2025) to €400M (2027) and €500M (2028), with 25-30% gross margin.
  • Digitalization Savings: Targets €200M+ in man-hour savings via automation, blending CapEx and OpEx investments.

Revenue and Margin Analysis

The company's revenue growth was driven by its strong presence in the power sector, with a significant increase in orders and projects. The project's pipeline and backlog stood at a substantial level, with 85-90% of the 2026 revenues expected to come from the existing backlog. As per Eduardo San Miguel Gonzalez De Heredia, "we have good visibility on EUR 7 billion in new awards, particularly in the Power division and traditional businesses like oil, gas, petchem, and LNG."

Business Outlook and Guidance

TR is optimistic about its future prospects, with guidance for 2026 indicating sales to exceed EUR 6.5 billion, and EBIT margin expected to be above 5%, translating into more than EUR 325 million. Net profit is projected to reach the neighborhood of EUR 200 million. The company's services business is expected to grow from EUR 333 million in 2025 to EUR 500 million by 2028.

Valuation Metrics

TR's valuation metrics indicate a relatively attractive price. The P/E Ratio stands at 14.74, P/B Ratio at 4.17, and P/S Ratio at 0.36. The EV/EBITDA ratio is 6.22, while ROIC is 12.08% and ROE is 29.15%. The Net Debt/EBITDA is negative, indicating a net cash position. These metrics suggest that the company's strong growth prospects and profitability are not entirely reflected in its current valuation.

Digitalization and Power Business

The company is making significant progress in digitalization, aiming to save EUR 200 million in man hours through automation. TR has a strong presence in the power business, with a good relationship with OEMs, which helps secure projects. The company has a proven track record of 25 projects in the last 10 years, demonstrating its capabilities and reliability.

Services Division

The services division has a gross margin of 25-30% and is expected to continue in this range for next year. The division is also involved in data centers, specifically in power units that generate electricity for data centers. With a strong pipeline and backlog, TR is well-positioned for future growth and profitability.

3. NewsRoom

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St George Mining taps Boston Metal for next-gen niobium processing at Araxá

Apr -01

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Oil and gas contracts value reports increase in Q4 2025

Mar -02

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Assessing Técnicas Reunidas (BME:TRE) Valuation After A Strong Multi Year Share Price Recovery

Feb -28

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Tecnicas Reunidas SA (WBO:TRE) Full Year 2025 Earnings Call Highlights: Record Sales and ...

Feb -27

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Azvalor Iberia FI Significantly Reduces Stake in Tecnicas Reunidas SA

Feb -04

Source:

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KBR & Tecnicas Reunidas Win FEED Contract for Texas LNG Project

Jan -12

Source: zacks.com

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Fluence Awarded Contract in Saudi Arabia worth over US $12 million

Oct -28

Source:

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3 European Stocks Estimated To Be Up To 45.4% Below Intrinsic Value

Oct -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.27%)

6. Segments

Natural Gas

Expected Growth: 4.5%

Técnicas Reunidas' 4.5% growth in Natural Gas is driven by increasing global demand, particularly in Asia, and rising LNG exports. Additionally, the company's strategic focus on gas processing and transportation projects, as well as its presence in high-growth markets, contributes to its growth momentum.

Refining

Expected Growth: 3.8%

Técnicas Reunidas' refining segment growth of 3.8% is driven by increasing global demand for refined products, strategic partnerships, and investments in process optimization and capacity expansion. Additionally, the company's focus on sustainability and energy efficiency, as well as its diversified customer base, contribute to its growth momentum.

Petrochemical

Expected Growth: 4.2%

The 4.2% growth in Petrochemical segment from Técnicas Reunidas, S.A. is driven by increasing demand for plastics and packaging materials, expansion into high-growth markets, and strategic partnerships to enhance production capacity and efficiency.

Other

Expected Growth: 3.5%

Técnicas Reunidas' 3.5% growth in 'Other' segment is driven by increasing demand for engineering services in renewable energy and infrastructure projects, coupled with strategic partnerships and expansion into new geographies, resulting in higher revenue from project management and consulting services.

Low-carbon Technologies

Expected Growth: 6.0%

Técnicas Reunidas' Low-carbon Technologies segment growth of 6.0% is driven by increasing global demand for renewable energy, government incentives for sustainable infrastructure, and the company's strategic partnerships with key industry players. Additionally, the segment benefits from the growing need for energy storage and grid modernization, as well as the company's expertise in engineering, procurement, and construction (EPC) services.

7. Detailed Products

Refining

Técnicas Reunidas provides engineering, procurement, and construction (EPC) services for refining projects, including crude oil refining, gasoline production, and diesel fuel production.

Petrochemicals

The company offers EPC services for petrochemical projects, including the production of ethylene, propylene, and other petrochemical products.

Oil and Gas

Técnicas Reunidas provides EPC services for oil and gas projects, including upstream and midstream operations, such as exploration, production, and transportation.

Power Generation

The company offers EPC services for power generation projects, including thermal, renewable, and combined-cycle power plants.

Infrastructure

Técnicas Reunidas provides EPC services for infrastructure projects, including roads, bridges, and buildings.

Water Treatment

The company offers EPC services for water treatment projects, including desalination, wastewater treatment, and water reuse.

8. Técnicas Reunidas, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Técnicas Reunidas, S.A. is medium due to the presence of alternative energy sources and technologies.

Bargaining Power Of Customers

The bargaining power of customers for Técnicas Reunidas, S.A. is low due to the company's strong reputation and long-term contracts.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Técnicas Reunidas, S.A. is medium due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Técnicas Reunidas, S.A. is high due to the growing demand for renewable energy and the increasing competition in the industry.

Intensity Of Rivalry

The intensity of rivalry for Técnicas Reunidas, S.A. is high due to the competitive nature of the industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.38%
Debt Cost 11.26%
Equity Weight 26.62%
Equity Cost 11.91%
WACC 11.43%
Leverage 275.72%

11. Quality Control: Técnicas Reunidas, S.A. 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
CFE

A-Score: 5.8/10

Value: 9.2

Growth: 1.1

Quality: 4.9

Yield: 5.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
OHL

A-Score: 4.6/10

Value: 9.2

Growth: 3.9

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
ABO Wind

A-Score: 4.5/10

Value: 9.6

Growth: 7.9

Quality: 4.6

Yield: 5.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Técnicas Reunidas

A-Score: 4.4/10

Value: 4.8

Growth: 4.2

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Salcef

A-Score: 4.0/10

Value: 2.4

Growth: 4.4

Quality: 6.5

Yield: 3.1

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
YIT

A-Score: 4.0/10

Value: 6.3

Growth: 0.7

Quality: 2.5

Yield: 3.8

Momentum: 7.5

Volatility: 3.0

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

35.2$

Current Price

35.2$

Potential

-0.00%

Expected Cash-Flows