ACS posts 17% rise in 2023 profit stoked by construction overseas
Reuters
Published Feb 29, 2024 17:36
Updated Feb 29, 2024 18:05
By Corina Pons
MADRID (Reuters) -Spanish builder ACS on Thursday posted a higher-than-expected 17% rise in 2023 net profit as it continues to benefit from its construction portfolio in the United States and Australia, and from toll-road businesses.
It said it netted 780 million euros ($842 million), while revenues rose 6.3% from a year earlier to 35.73 billion euros.
Analysts polled by LSEG had expected, on average, a 5.6% rise in revenues and 2.3% increase in profit.
The road concession business generated 206 million euros in profit, 5.7% higher than a year ago, as motorway traffic exceeded pre-pandemic levels.
Abertis, the toll road concession company in which ACS holds a 50% stake, increased its contribution to the group net income by 25% to 179 million euros.
On the back of strong results from construction activities also in its home country, the company said in late 2023 it had begun to evaluate possible sale of its services unit Clece, which operates mainly in Spain.
ACS is following the same strategy as its main domestic rivals such as Ferrovial and Sacyr, that both have sold their services businesses in the last few years to focus on construction and concessions activities.
ACS' activities in North America accounted for 66% of total construction revenues, after the company won projects to build new airport terminals, stadiums and highways, mainly in the United States.
($1 = 0.9258 euros)
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Written By: Reuters
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