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6 reasons for an investment in HOCHTIEF shares

HOCHTIEF as an investment

Our six reasons

  • Diversified, global infrastructure exposure and market-leading subsidiaries
    • HOCHTIEF is an engineering-led global infrastructure group with almost 150 years of history and leading positions across its core activities of construction, services and concessions/public-private partnerships (PPP) focused on Australia, North America and Europe.
    • This unique combination results in a balanced business profile in terms of cash flow visibility, capital intensity and margins

    Sales by activity

    Net profit split by division

  • Attractive shareholder remuneration
    • Policy of paying out 65% of nominal net profit as dividend
    • Dividend per share CAGR since 2012 of +29% 
    • Track record of additional remuneration via share buyback programs

    Dividend per share (EUR)

  • A beneficiary of global megatrends with an ambitious innovation strategy
    • Urbanization, demographic change and globalization create additional demand for construction projects: railway tunnels to ease urban traffic congestion, high-rise apartment buildings in conurbations, major airport refurbishments, construction of new data centers.
    • Climate change brings new challenges worldwide, which we help to address as leading “green builder” in the US, through sustainable infrastructure in Australia and passive houses in Europe
    • Public budget constraints can limit actual investment in much needed transport and social infrastructure where HOCHTIEF can offer an integrated solution through public-private partnership
    • Rapid advances in digitalization create application opportunities which we work on exploiting in cooperation with leading universities and IT companies experienced in BIM (building information modelling)

  • Strong balance sheet and solid credit rating
    • Robust net cash position supports the operating businesses, capital allocation and investment opportunities
    • Solid BBB investment-grade rating by S&P underscores financial solidity and allows for bond financing on attractive terms

    Net Cash (EURm)

  • Strong track record of sustainable cash-backed operational profit growth
    • 5-year operational earnings per share CAGR of 28% with solid long-term outlook
    • Key performance indicators used by HOCHTIEF group management teams strongly aligned with shareholders’ interests
    • History of disciplined focus on capital allocation, including M&A, to drive long-term value creation
    • 5-year operational earnings per share CAGR of 28% with solid long-term outlook

    Operation net profit development (EURm)

  • Values-led corporate culture and consistently positive ESG recognition
    • Five guiding principles that apply to all employees: integrity, accountability, innovation, delivery and sustainability – all underpinned by the precondition of safety
    • Dedicated sustainability strategy balancing economic objectives with ecological and social responsibilities
    • Consistently positive results in leading ESG surveys, including from RobecoSAM (“Global Top 5 Construction and Engineering Rank”), MSCI (“AA-Rating”) and Carbon Disclosure Project (CDP; “B”-Rating)