OHLA - comment

OHLA’s operational results were less crucial than the €200m needed to repay bonds in March 2025. The maturity either requires executing something from the sale of Canalejas/CHUM and the Service business, or raising equity. 

OHLA Q1 revenue and EBITDA were lower but broadly in line with our model, but operating cash flow was a significant miss on bigger-than-expected working capital outflows. Operating cash was impacted by much larger-than-expected outflows from Debtors, which led to a €150m outflow, whereas our model had anticipated a €70m outflow. The difference was primarily due to the commencement of new projects. Management guidance for FY24 is for Free Cash flow generation, so they expect this working capital movement to reverse over the year. The short-term order book was better than we expected, which does support strong inflows in H2.