Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €557.81M
• Dividend Yield: N/A
• Average Volume (3M): 9.49M
• Price to Earnings (P/E): 297.9
• Beta (1Y): 0.73
• Revenue Growth: 1.39%
• EPS Growth: 72.34%
• Country: ES
• Employees: 8,656
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 1,383,432,300
• 10 Day Avg. Volume: 8,303,119
• 30 Day Avg. Volume: 9,492,597
• PEG Ratio: -2.93
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): €3.76B

• Rating: 52 Neutral
• Price Target: €0.40 ▲(6.76% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is held back primarily by inconsistent profitability and weakened 2025 cash flow, despite balance-sheet improvement. Technicals add modest support from positive momentum, but overbought signals temper that benefit. Valuation is a negative factor due to a highly negative P/E and no dividend data.

Positive Factors

Balance-sheet improvement

Reduced debt and higher equity represent a healthier capital structure that lowers refinancing and covenant risk. This improvement supports the company's ability to bid on large, multi-year contracts and absorb project timing variability, strengthening long-term financial resilience.

Contract-based, diversified revenue model

Revenue tied to multi-year public and private contracts, maintenance agreements and international operations provides durable revenue visibility and diversification. Long-term project work and geographic spread reduce single-market cyclicality and support sustained backlog and cash flow opportunities.

Historically positive operating cash flow in recent years

Strong operating cash generation in 2023–2024 shows the business can convert contract revenue into cash in favorable periods. That demonstrated cash-generation ability underpins working-capital needs, supports project delivery and funding of capex without persistent external dependence.

Negative Factors

Volatile profitability and thin margins

Earnings swings and a negative gross profit in 2025 signal unstable project economics and potential cost overruns or one-offs. Persistently volatile margins undermine return predictability, weaken investor confidence and complicate pricing and contract selection over the medium term.

Inconsistent cash conversion; weakened 2025 cash flow

A sharp cash-flow deterioration in 2025 and absence of free cash flow reduce the company's liquidity buffer. Irregular cash conversion raises reliance on external funding for bonds and working capital, increasing financing risk during downturns and limiting reinvestment capacity.

Residual leverage exposure

Despite improvement, a ~1x debt-to-equity profile leaves the firm exposed if earnings remain uneven. With volatile returns, ongoing leverage can pressure interest coverage and restrict strategic flexibility, forcing asset sales or equity issuance to shore up the balance sheet in stress scenarios.

Obrascon Huarte Lain Business Overview & Revenue Model

Company Description

Obrascón Huarte Lain, S.A. engages in the construction and concessions development businesses in the United States, Canada, Mexico, Chile, Peru, Colombia, Spain, Central and Eastern Europe, and internationally. It operates through Construction, Industrial, and Services segments. The company provides civil engineering works and building construction services for public and private-sector customers; and designs, constructs, maintains, and operates industrial plants and systems, including oil and gas, renewable energy, mining and cement, solids engineering, and fire-fighting systems. It also offers property and infrastructure maintenance services for homes and offices, urban green areas, road networks, and social and health services, as well as develops real estate projects, and develops and operates mixed use hotels. The company was formerly known as Sociedad General de Obras y Construcciones Obrascón, S.A. Obrascón Huarte Lain, S.A. was incorporated in 1911 and is headquartered in Madrid, Spain.

How the Company Makes Money

OHLA generates revenue primarily through contracts for construction and engineering projects. The company engages in public and private sector projects, often bidding for large-scale contracts that can span several years. Key revenue streams include construction services, project management fees, and maintenance contracts. Additionally, OHLA may partner with governmental bodies and private enterprises to undertake infrastructure projects, which can lead to joint ventures and collaborative contracts. The company also benefits from its global presence, allowing it to tap into diverse markets and capitalize on various opportunities, thus enhancing its earnings potential.

Obrascon Huarte Lain Financial Statement Overview

Summary

Financials are mixed: the balance sheet is improving with lower debt and higher equity (strongest area), but profitability is highly volatile with thin margins and a negative gross profit in 2025. Cash generation was solid in 2023–2024 but weakened sharply in 2025, making cash conversion inconsistent.

Income Statement

Revenue expanded strongly in 2023–2024, but declined in 2025, signaling a choppier top-line trajectory. Profitability is the bigger issue: net results swung between losses (2020, 2022, 2024) and small profits (2021, 2023, 2025), and 2025 shows a negative gross profit despite positive EBIT/EBITDA, which points to volatile project economics and/or one-off impacts. Overall, margins are thin and earnings quality is inconsistent for the period shown.

Balance Sheet

Leverage has improved meaningfully, with total debt down in 2025 versus 2023–2024 while equity increased, supporting a healthier capital structure. However, the company still runs with meaningful leverage (debt-to-equity around ~1x in recent years) and returns on equity have been inconsistent, including negative periods, reflecting uneven profitability. Asset base is large and relatively stable, but the balance sheet remains somewhat exposed to earnings volatility typical of contracting businesses.

Cash Flow

Operating cash flow has generally been positive and stronger in 2023–2024, but it weakened sharply in 2025, reducing the cash buffer. Free cash flow was solidly positive in 2023–2024, while earlier years included negative free cash flow and 2025 shows no reported free cash flow, highlighting inconsistency in cash conversion. Overall, cash generation is adequate in good years but not yet dependable across the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.46B	3.65B	3.13B	2.87B	2.78B
Gross Profit	-104.40M	1.61B	1.38B	1.56B	1.27B
EBITDA	205.10M	95.58M	176.45M	88.53M	188.96M
Net Income	1.70M	-49.92M	5.52M	-96.84M	5.95M
Balance Sheet
Total Assets	3.47B	3.57B	3.26B	3.19B	3.06B
Cash, Cash Equivalents and Short-Term Investments	714.40M	707.37M	611.29M	517.71M	558.44M
Total Debt	362.40M	595.29M	588.54M	532.22M	564.39M
Total Liabilities	2.84B	3.04B	2.76B	2.64B	2.44B
Stockholders Equity	611.00M	526.24M	494.11M	558.40M	624.28M
Cash Flow
Free Cash Flow	0.00	131.52M	160.98M	-26.68M	-30.28M
Operating Cash Flow	52.00M	186.20M	199.60M	11.47M	-633.00K
Investing Cash Flow	-101.00M	15.53M	-6.32M	123.27M	85.62M
Financing Cash Flow	49.00M	-128.57M	-43.11M	-185.50M	-63.87M

Obrascon Huarte Lain Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:OHLA, the sentiment is Positive. The current price of 0.37 is below the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:OHLA.

Obrascon Huarte Lain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCC	70 Outperform	€5.09B	35.33	5.28%	4.49%	5.00%	-64.19%
ENO	67 Neutral	€2.34B	18.70	-6.79%	13.00%	11.61%	-212.68%
ACS	65 Neutral	€27.47B	22.99	19.75%	2.38%	25.47%	7.63%
TRE	59 Neutral	€2.41B	10.84	24.64%	―	41.87%	55.79%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SCYR	53 Neutral	€3.32B	32.80	10.80%	5.28%	2.03%	-32.59%
OHLA	52 Neutral	€557.81M	297.92	-6.41%	―	1.39%	72.34%