TECNICAS REUNIDAS (-) : Q1 26: Middle East pain vs short-term awards gain

Research evidence excerpt

TECNICAS REUNIDAS (-) : Q1 26: Middle East pain vs short-term awards gain

EQUITIES

OIL & GAS

UNDERPERFORM TARGET PRICE EPS 26e EPS 27eTECNICAS REUNIDAS PRICE* EUR31.1  TARGET PRICE EUR25 (DOWNSIDE 20%) unchanged  -16% non material

Q1 26: Middle East pain vs short-term awards gain

Q1 26 impacted by Middle East conflict14 MAY 2026

Securities Research Report Sales continue their positive trajectory, but EBIT was impacted by the Middle East conflict,

Production time: 12:52* (London time) requiring a EUR46m provision and pressuring FY26 guidance. Underlying EBIT remained in line

Research Analysts & Publishing Entities with guidance and consensus (4.8% EBIT margin), while the EBIT margin attributable to projects

Francisco Ruiz (ex-corporate centre costs) improved by 20bp versus Q1 25 (see First take). Underlying outlook is

BNP Paribas SA maintained, but FY26 reported EBIT guidance has been reduced to EUR280m (14% below BBG).(+34) 91 114 83 06

francisco.ruizmartin@bnpparibas.com

Middle East provision assumes short-term resolution of the conflict

The EUR46m provision, which covers impacts on employee safety, logistics and construction

disruption, assumes the conflict does not persist and that Hormuz would reopen as early as Q2 26.

The company is in dialogue with key clients to mitigate these impacts and to secure orders for the

reconstruction of damaged infrastructure. It expects to recover lost sales in H2.

Bullish “imminent awards” scenario: EUR4-8bn

TRE announced imminent awards after a Q1 with practically no new wins. TRE indicated

immediate EUR4-8bn awards (most likely EUR6bn) from the Middle East alone, while also

reiterating a sizable pipeline for the next 24 months, not only from the Middle East (EUR17bn) but

also from North America (EUR16bn).