Earnings call transcript: IC Group posts strong Q2 2026 growth, shares rise 7%

Mota-Engil, a Portuguese construction and infrastructure group, reported a stronger first-half 2026 profit and raised its outlook during its earnings call. The company's revenue grew by 6% year on year, reaching EUR 2.0 billion, with EBITDA increasing by 10% to about EUR 500 million. Net profit after minorities rose by 24% to EUR 74 million, marking a 2.5 times improvement compared to the same period in 2023.

Free cash flow reached EUR 159 million, equivalent to 33% of EBITDA, a sharp improvement from the company's historical average. Meanwhile, backlog expanded to a record EUR 17.7 billion, providing more than three years of revenue visibility. Net debt was EUR 1.99 billion, keeping leverage below the company's target of 2.0x EBITDA.

The impressive performance was driven by stronger margins, a solid cash generation, and a record backlog. Revenue growth was moderate, but EBITDA and net profit advanced faster, indicating better project mix, stronger execution, and higher margins. Africa showed an 11% revenue and 12% EBITDA growth, while Latin America grew revenue by 7%.

Europe's performance was softer due to project timing delays, but the region maintained an 8% EBITDA margin. Mota-Engil highlighted its position in the contract mining industry, stating it is among the top three operators globally and the largest in Africa. The company's focus on contract mining, concessions, and circularity projects is becoming increasingly important in its growth profile.

The positive outlook for the second half of 2026 relies on the record backlog and stronger execution in the second half. Management expects revenue growth to exceed 10% and EBITDA margin to be at least 18%. The company's financial discipline targets remain in place, and the strong cash generation underscores that profit growth is backed by real cash.