Webuild (AO) | Buy | Upcoming business plan: preliminary flavour

Research evidence excerpt

Webuild (AO) | Buy | Upcoming business plan: preliminary flavour

Webuild Buy | Target Price: EUR3.40

Company description Management

The reverse merger of Salini into Impregilo (effective as of 1/1/2014) created a Pietro Salini, CEO

geographically diversified Italian general contractor with sector specialisation in Massimo Ferrari, General Manager Corporate and Finance

transport infrastructures and hydro, and sizeable positions in Italy, LatAm, Africa, Claudio Lautizi, General Manager Operations

and the Middle East. The presence in the US has been increased through the Key shareholders

Lane acquisition, finalised in January 2016. Footprint in Australia is also being Free float 42.80%

developed. As of 2020, the name became Webuild, which now also includes Salini Costruttori 38.10%

Astaldi. CDP Equity 16.50% Treasury shares 2.50%

Investment case Valuation methodology

Webuild is the largest Italian construction company. It is We value the stock at EUR3.4 per share, which is derived by

geographically diversified and active mainly in Italy, EMEA, applying 5x EV/EBIT 2026-28E, which is below peer median.

North America, and Australia. It executes complex infrastructure Any reduction of the gap between gross and net debt might

jobs, specialising in hydro and transport infrastructure. benefit the valuation.

The company has reduced the exposure to risky emerging FCF conversion and gross financial debt are crucial datapoints.

countries, pursuing growth opportunities in developed markets. Risks to our rating

The outlook on global infra spending is supportive. Project execution issues or delays in contract execution,

An improvement in cash conversion occurred in 2021-24. Higher deterioration of working capital and cash flow.