European Infrastructure: Hochtief & ACS Q1'26 Model Updates

Research evidence excerpt

European Infrastructure: Hochtief & ACS Q1'26 Model Updates

Equity Research

14 May 2026

European Infrastructure

Hochtief & ACS Q1'26 Model

Updates

We update our numbers for Hochtief and ACS on the back of European Construction, Building Materials

strong Q1 prints, both tracking at the top of FY guidance. We & Infrastructure NEUTRAL

Unchangednow look for FY26 results ahead of current guidance for both

companies, driven by outperformance at Turner where DC-led European Construction, Building

Materials & Infrastructure

momentum remains strong and drives margin expansion. Katherine Hearne, CFA

+44 (0)20 7773 2041

katherine.hearne@barclays.com

ACS and Hochtief both delivered solid Q1 results, with top-line performance broadly in line Barclays, UK

to slightly ahead of expectations and ordinary NPAT growth tracking at the top-end of

each company's respective guidance ranges. The key driver for Hochtief, and therefore by Tom Zhang, CFA

+44 (0)20 3555 1395extension for ACS, remains Turner, where growth continues to be supported by strong demand

tom.zhang1@barclays.com

for higher-margin Advanced Tech and data centre projects, benefiting both revenue momentum Barclays, UK

and margins. Backlog and order intake remain strong, providing decent visibility. Despite this

strong start to the year, both companies maintained guidance. We believe that they prefer to Pierre Rousseau

+33 (0)1 4458 3377remain more conservative at this early stage in the year given the backdrop of geopolitical and

pierre.rousseau@barclays.com

FX volatility, but there is scope for potential upgrades through the year in our view (as a BBI, Paris

reminder, in FY25 both companies waited until Q3 results to upgrade FY guidance). As such, we