After the presentation of the business figures for 2023 as well as the outlook, the Bilfinger share rose significantly last week. Since the publication of the fresh figures, the stock has gained around 12 percent, and since the beginning of the year, the share price has increased by more than 20 percent. At around 43 euros, the Bilfinger share is trading as high as it has been in more than 5 years (as of February 19, 2024, approximately 10 am).

In addition to the very decent end to the financial year, investors were particularly convinced by the outlook of the industrial services provider. The company specializes in maintenance and repair of industrial plants as well as consulting and planning services – and sees further growth potential in these areas. The focus for the coming years is on improved profitability.

Bilfinger with good figures – and a very decent outlook. In the financial year 2023, Bilfinger generated revenues of almost 4.5 billion euros, an increase of approximately 4 percent compared to the previous year. Order intake also increased by about 3 percent to just over 4.7 billion euros. With 4.3 percent, the EBITDA margin of the industrial services provider was significantly higher than the previous year’s level, and the company reported a profit of 181 million euros (compared to 28 million euros in 2022).

Bilfinger also plans to continue growing in 2024: Revenue is expected to increase slightly and reach between 4.5 and 4.8 billion euros. At the same time, Bilfinger wants to become more profitable and predicts an EBITDA margin between 4.9 and 5.2 percent. As part of the ongoing efficiency program, the company plans to save around 55 million euros in 2024.

In the next few years, the focus of the SDAX-listed company from Mannheim will continue to be on improving profitability. According to a confirmed medium-term forecast, the EBITDA margin is expected to increase to 6 to 7 percent between 2025 and 2027, and revenue is expected to grow by 4 to 5 percent annually.

Bilfinger share: These are good prospects. The outlook from Bilfinger for 2024 and the coming years is impressive. The company plans to increase both revenue and profitability. The demand for Bilfinger’s services is increasing – a solid foundation for growth in the coming years.

From an investor’s perspective, the higher dividend is also a good argument. For the completed financial year 2023, Bilfinger wants to increase the dividend from 1.30 euros to 1.80 euros. At the current price of 43 euros, this represents a dividend yield of more than 4 percent. The medium- and long-term prospects for the Bilfinger share are at least decent.

However, investors should not underestimate the strong performance of the past few weeks, as there may also be setbacks or profit-taking. An important date could be the capital market day on June 12: Here, the company wants to „provide deeper insights into business development and the implementation of the strategy.“

Source: https://aktienscreener.com