Tecnicas Reunidas: Supportive results with pragmatic provisioning and strong award momentum

研报英文原文证据摘录

Tecnicas Reunidas: Supportive results with pragmatic provisioning and strong award momentum

Barclays | Tecnicas Reunidas

hostilities and reopening of the Strait of Hormuz within 2Q26, suggesting downside risk is being

addressed prudently and transparently rather than deferred. Importantly, only four projects (ca.

EUR1.5bn of backlog (16%)) are described as materially impacted.

Backlog and intake weak, but pipeline commentary constructive: Backlog declined to

EUR9.2bn from EUR10.6bn in 4Q25, reflecting very weak order intake of EUR88mn in the quarter

(book-to-bill 0.1x), entirely from engineering services. Headline intake was soft, but

management highlighted accelerating structural demand across gas, power and electrification.

The company in particular pointed to an imminent pipeline, guided as “significant very

short-term awards” of EUR4-8bn, in the Middle East alone, consisting of an oil, an offshore and

a power project (UAE) and increasing momentum outside the Middle East. The company noted

that it feels that the crisis has firmed up plans outside of the region with Canada, the US,

Panama, Venezuela and Argentina looking prospective and decarbonisation and low-C fuels

accelerating again in Europe. Indeed, in North America the company highlighted work of ca

EUR7bn on which it is well placed, already working through the projects. The newly

independent Power division will play a critical element in this with the company expecting

EUR4bn of award this year. As such, the outlook for projects and growth from Tecnicas looks

well supported, as it aims to double it margin by 2028.

Framing the Middle East practicalities: On the ground, the Middle East situation, it appears, is

manifesting less as contract risk and more as an execution and logistics challenge. Management