ACS Our main thoughts post HOTG Q2 conf. call

Research evidence excerpt

ACS Our main thoughts post HOTG Q2 conf. call

tinuing to rise 12/27E 5.09 4.92

Since May-26, cumulative hyperscaler consensus capex forecasts for the next five years 12/28E 5.81 6.03

have continued to increased rising a further ~10%. We also highlight Alphabet last

Amal Patel

week raising FY26 capex guidance once again and signalling for further 'significant' Analyst

increases in 2027. While part of this reflects higher chip and memory costs, we believe it amal.patel@ubs.com

also points to continued infrastructure demand. Supporting this view, HOCHTIEF +44-20-7568 3973

highlighted Turner's involvement in Meta's Richland Parish campus expansion (2GW to

Cristian Nedelcu, CFA

5GW) and a 1GW Alberta data centre. We expect both projects could convert into Analyst

orders in 2027-28 and together represent a double digit EURbn opportunity for Turner cristian.nedelcu@ubs.com

underpinning further backlog/revenue growth mid term. +44-20-7568 4375

DC construction moratoriums contextualised

HOCHTIEF's CEO dismissed datacentre moratorium concerns and the broader NIMBY

movement, noting that >70% of US datacentre capacity is concentrated in <1% of US

counties. In management's view, much of the regulatory pushback is occurring outside

the core hyperscaler markets that drive Turner's datacentre business. Given Turner's

exposure is concentrated in these large-scale datacentre hubs, we see limited risk to

underlying demand, and note that even if future restrictions were to arise, they are more

likely to drive a change in project location than overall capacity deployment.

Valuation: Buy, PT €150/sh

Highlights (€m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 35,738 41,633 49,848 55,107 59,084 62,766 65,369 67,476

EBIT (UBS) 946 1,518 1,979 2,349 2,637 2,846 2,992 3,133