Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €583.39M
• Dividend Yield: N/A
• Average Volume (3M): 9.49M
• Price to Earnings (P/E): 297.9
• Beta (1Y): 0.75
• 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): €3.72B

• Rating: 51 Neutral
• Price Target: €0.40 ▲(7.03% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily held back by inconsistent profitability and uneven cash flow (including negative gross profit in 2025), despite improving leverage trends. Technicals are moderately constructive with price above key averages and positive MACD, but valuation is a major headwind due to an extremely high P/E and no dividend support.

Positive Factors

Improving leverage

A meaningful reduction in total debt alongside higher equity strengthens the capital structure, lowering refinancing and solvency risk. This durable improvement increases financial flexibility to bid on large projects and support concessions, improving resilience across construction cycles.

Recent strong operating cash flow

Sustained positive operating cash flow in 2023–2024 demonstrates the company can convert project revenue to cash in favorable periods. Reliable OCF when present supports working capital, debt reduction and reinvestment into backlog or concessions, aiding long‑term project execution.

Diversified infrastructure business model

A business model spanning civil construction, concessions and recurring services provides revenue diversification. Concession and service contracts can create multi-year predictable cash flows, reducing pure-cycle exposure and supporting steadier earnings over infrastructure investment horizons.

Negative Factors

Volatile profitability and negative gross profit

Negative gross profit in 2025 and swings between losses and small profits indicate unstable project economics and earnings quality. Persistent margin volatility undermines the company’s ability to generate reliable returns and plan capex, financing or dividend policies over the medium term.

Inconsistent cash conversion

Irregular free cash flow and a sharp weakening in 2025 reduce the firm’s internal funding capacity. Inconsistent cash conversion strains liquidity during downturns, limits debt reduction and makes financing concessions or large projects more dependent on external capital.

Contract and input‑cost exposure

Heavy exposure to fixed‑price contracts and volatile input costs creates structural margin risk. Cost overruns, slow claims resolution or adverse contract terms can persistently depress profitability in contracting businesses, making earnings and cash flow less predictable.

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 primarily makes money by contracting and executing construction and civil engineering projects for public-sector and private-sector clients. Revenue is recognized as projects progress under construction contracts, and earnings are driven by project volumes (order backlog), pricing, cost control, and the ability to deliver within budget and schedule. A second major source of earnings can come from concessions/PPP-style arrangements where the company (often through a concession vehicle) participates in the development and, in some cases, the long-term operation of an infrastructure asset; in those structures, OHLA may earn (i) construction revenue during the build phase and (ii) recurring concession-related income (e.g., availability payments or user-fee/toll-linked income) over the operating term, net of operating and financing costs. The company may also generate revenue from services associated with infrastructure and facilities (such as operations and maintenance) when it holds those contracts, typically as recurring service fees. Significant factors influencing OHLA’s earnings include the mix of fixed-price vs. cost-plus contracts, claims/variations and contract modifications, inflation and input-cost dynamics, client payment behavior, financing costs on concession assets, and the level of new contract awards that replenish backlog. Specific named partnerships, counterparties, and the exact contribution of each business line to revenue are null.

Obrascon Huarte Lain Financial Statement Overview

Summary

Balance sheet trends are improving (lower debt and higher equity), but operating performance is the key weakness: volatile profitability across years and a concerning negative gross profit in 2025. Cash generation has been solid in some periods (2023–2024) but weakened sharply in 2025, making cash conversion less dependable.

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 0.40, below the 50-day MA of 0.38, and below the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.12 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
ENO	67 Neutral	€2.60B	18.70	-3.10%	13.00%	11.61%	-212.68%
ACS	65 Neutral	€28.38B	22.99	20.71%	2.38%	25.47%	7.63%
TRE	59 Neutral	€2.11B	10.84	24.64%	―	41.87%	55.79%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FCC	55 Neutral	€5.08B	―	7.94%	4.49%	5.00%	-64.19%
SCYR	53 Neutral	€3.33B	32.80	8.86%	5.28%	2.03%	-32.59%
OHLA	51 Neutral	€583.39M	297.92	0.29%	―	1.39%	72.34%