| In 1H26A, Reway Group recorded a Value of Production of € 146.75 million, up 8.9% compared to € 134.75 million in 1H25A, while sales revenues increased by 26.0% to € 137.29 million, supported by the progressive execution of projects in the road, motorway and railway segments. EBITDA stood at € 26.41 million, substantially stable compared to € 26.24 million in the comparable period, with the EBITDA margin decreasing to 18.0% from 19.5%, mainly due to the higher incidence of service costs and subcontracted activities. EBIT remained stable at € 20.99 million, while Net Income reached € 11.04 million compared to € 12.37 million in 1H25A. From a balance sheet perspective, NFP improved to € 60.10 million of debt compared to € 68.18 million at year-end 2025, benefiting from positive operating cash generation. In light of the results published in the 1H26A interim financial report, we confirm our estimates for the current year and the following years.In particular, we estimate FY26E Value of Production at € 304.50 million and EBITDA at € 56.85 million, corresponding to a margin of 19.0%. For the following years, we expect Value of Production to increase to € 351.50 million in FY28E (25A-28E CAGR: 8.1%), with EBITDA reaching € 69.00 million, corresponding to a margin of 20.0%, compared to € 49.69 million in FY25A, corresponding to an EBITDA margin of 18.2%. From a balance sheet perspective, we estimate FY28E NFP at € 16.51 million of debt. We valued Reway Group’s equity using both the DCF methodology and the market multiples analysis based on a sample of comparable companies. The DCF method, which prudently includes a 1.5% specific risk premium in the WACC calculation, yields an equity value of € 401.9 million. Reway Group’s equity value based on market multiples comes out at € 398.6 million. This results in an average equity value of approximately € 400.2 million. Our target price is € 10.31, with a HOLD rating and MEDIUM risk. |
