Webuild reports enormous growth for international orders

A tunnel boring machine (TBM) ready to begin excavating the tunnel of the Southern Apennines (Appennino Meridionale) in the Rochetta and Orsara tunnel along the Naples-Bari high-speed railway line. (Image: Webuild)

The company saw a 65% increase in new orders internationally, worth €7.5 billion (US$8.1 billion).

Overall, revenues were up more than 20% to just less than $6 billion, which Webuild said was ‘higher than revenues for the entirety of 2019’. Earnings before interest and taxes was $245 million, up 63% from last year.

Webuild noted a “positive net financial position” for the fourth consecutive semester, which it said was unique “considering double-digit growth in revenues and margins.”

Gross debt stands at just less than $2.9 billion, and adjusted net profit for the group was $89 million, up from $25 million in 2023.

“During the first half of 2024, the Webuild Group, leveraging its competitive position, continued to benefit from an expanding infrastructure market, which has remained strong and robust due to megatrends such as climate change and energy transition, as well as resource scarcity and population growth,” said Webulid in its report.

“The paradigm shift in relations with clients and, more generally, in the infrastructure sector, as well as the benefits associated with the scale achieved by Webuild and the expertise acquired over the years, have given the group enormous opportunities for growth.”

A deeper look at Webuild’s record backlog

Webuild workers adapt to the pressure of working in the hyperbaric excavation site on the Casalnuovo tunnel in a special compensation chamber (Image: Webuild)

The company said it achieved a record backlog in the first half at $71 billion. Its commercial pipeline exceeded $102 billion, and its cash-on-hand went up more than $1 billion to $1.5 billion.

“As part of its strategy to position itself in low-risk markets, Webuild monitors opportunities in Europe, Australia, North America and the Middle East. In these markets, where the group has an excellent strategic positioning, there is a strong momentum of investment in infrastructure, both in large civil engineering works such as roads and railways, and in the energy and smart buildings sectors,” explained the company in its report.

Webuild cited the following government programmes as being integral in improving its international footprint: Next Generation EU, Powering Australia, the US Infrastructure Investment and Jobs Act, the US Inflation Reduction Act, the US CHIPS and Science Act, and the Saudi Vision 2030, EXPO 2030 and FIFA 2034 World Cup.

The Middle East is Webuild’s largest commercial market with 45% share of the $102 billion in orders. Australia commands 16%, Europe 12%, Italy 11% and North America 8%.

“More than 90% of the Webuild construction backlog involves projects linked to the advancement of the United Nations Sustainable Development Goals,” said Webuild. “In terms of markets, the order backlog is mainly distributed among Italy, Central and Northern European countries, the United States, Middle East and Australia – mainly in sustainable mobility (rail, high-speed rail and surface transport), and Clean Hydro Energy – bringing projects in these geographies to over 85% of the construction backlog.”

Three major billion-dollar projects upcoming for Webuild

Digital render of ‘The Bow’ at the Neom’s Trojena project in Saudi Arabia. (Image: Webuild)

Looking ahead, the company is actively hiring to meet the demands of its scheduled work.

“Work proceeds on strategic infrastructure projects in Italy and abroad with almost 90,000 people and [more than] 19,000 companies in [the] supply chain,” said Webuild.

“More than 6,000 people [were] hired [in the] first half [of] 2024, with prospect of recruiting more than 10,000 in total by end [of] 2024.”

The company highlighted several massive new projects, which it said are located 95% in key markets with low-risk profiles.

Here’s a look at the three largest:

• Trojena Project: Construction of three dams and related innovative works to feed a freshwater lake at a ski resort in Trojena as part of the futuristic Neom project in Saudi Arabia worth $4.7 billion. The project is part of the Saudi Vision 2030 for the economic diversification of the country.
• Grand Paris Express – Line 15: Design and construction of Lot 2 of the western section of metro line 15 of the Grand Paris Express. The project, which involves the construction of four underground stations and six functional works, has a total value of $1.5 billion.
• Pape Tunnel and Underground Stations: Development and construction of the section of the new Ontario Line, a rapid underground rail service in Toronto. The work involves the construction of three kilometres of tunnels and two underground stations for an estimated total of between $760 million and $1.4 billion.