BREAKING NEWS 06.08.2024

In the press release dated July 31st, 2024, Reway Group SpA – a leading Italian Company in the restoration of road and highway infrastructures and since 2023 in railway network maintenance – has reported its main consolidated economic data as of June 30th, 2024, which have not been audited. The Value of Production recorded a significant increase, reaching €117.30 million, with a rise of 42.3% compared to €82.40 million as of June 30th, 2023, on a pro-forma basis. Specifically, €87.80 million pertains to the maintenance and rehabilitation of road infrastructures, while €29.50 million relates to railway maintenance. It is important to highlight the substantial volume growth of the newly acquired Gema SpA, which closed the first half with a production value of €47.80 million, marking an increase of 72.4% compared to the previous year. Net Financial Debt amounted to €67.00 million, up from €34.60 million as of December 31st, 2023, and €38.40 million as of March 31st, 2024. This worsening is due to the costs incurred for the acquisition of 30.0% of Gema SpA, completed in April 2024 through a bank loan totaling €27.00 million, and the partial payment of the earnout related to the acquisition, amounting to €6.70 million as of June 30th, 2024. The Backlog stands at €913.30 million (approximately €935.00 million as of March 31st, 2024, and about €500.50 million as of June 30th, 2023), supported by €48.20 million in new orders acquired and over €70.00 million in work executed in the second quarter of 2024. This confirms the Reway Group’s leadership position in the rehabilitation of road, highway, and railway infrastructures. It should be noted that the Backlog as of June 30th, 2024, will impact the next five fiscal years. From a business perspective, the Group, through its subsidiaries, secured contracts worth over €227.00 million in the first half, related to the rehabilitation and maintenance of road and highway infrastructures and the railway network. This includes the most recent awards in June for the extraordinary maintenance of civil works in Lazio and Sardinia. The achievement of these results demonstrates that the Group is in an advanced and satisfactory phase of reaching the objectives set out in its development plan. This strengthens our positive outlook on the stock. While we await a detailed evaluation of the half-year results with management, we confirm our recommendation: the target price is €8.30, rating BUY, and risk MEDIUM.

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