Tecnicas Reunidas (TRE) AI Stock Analysis

• Market Cap: €1.65B
• Dividend Yield: N/A
• Average Volume (3M): 132.41K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.14
• Revenue Growth: 18.31%
• EPS Growth: 50.40%
• Country: ES
• Employees: 10,451
• Sector: Energy
• Sector Strength: 44
• Industry: Engineering & Construction
• EPS (TTM): 0.35
• Shares Outstanding: 80,301,260
• 10 Day Avg. Volume: 117,350
• 30 Day Avg. Volume: 132,415
• PEG Ratio: 2.20
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• 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: €23.00
• Price Target Upside: 8.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: €22.00 ▲(3.87%Upside)

The overall score reflects strong technical momentum and positive financial performance, while valuation remains moderate. The company's leverage is a concern, and the stock appears overbought, suggesting potential volatility ahead.

Tecnicas Reunidas Business Overview & Revenue Model

Company Description

Técnicas Reunidas, S.A., an engineering and construction company, engages in the design and management of industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste, and biomass technology, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks, and sports centers. It is also involved in the property development and machinery wholesale business; and provision of inspection, quality control, and technical consulting services. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.

How the Company Makes Money

Tecnicas Reunidas makes money through providing engineering, procurement, and construction (EPC) services to clients in various industries, including oil and gas, petrochemicals, and power generation. The company generates revenue by executing large-scale projects that require detailed design, procurement of materials, and construction management. Key revenue streams include fixed-price contracts, where TRE is responsible for delivering projects within a specified budget and timeline, and reimbursable contracts, where the company earns fees based on the costs incurred during project execution. Significant partnerships with major global oil and gas companies, as well as investments in technology and sustainable energy solutions, also contribute to its earnings. Additionally, Tecnicas Reunidas benefits from repeat business and long-term relationships with clients, which provide a stable flow of projects and revenue.

Tecnicas Reunidas Financial Statement Overview

Summary

Tecnicas Reunidas shows improved profitability and revenue growth with a 7.6% increase year-over-year. Despite a higher net profit margin and better cost management, the company faces challenges with high leverage and relatively low EBIT and EBITDA margins, indicating room for operational efficiency improvements.

Income Statement

Tecnicas Reunidas has shown a consistent improvement in profitability over recent years. The gross profit margin increased from 25.6% in 2022 to 27.5% in 2023, indicating improved cost management. Net profit margin also improved significantly, reaching 2.0% in 2023 from a net loss in 2022. Revenue grew by 7.6% year-over-year, showcasing a positive growth trajectory. However, while EBIT and EBITDA margins have improved, they remain relatively low, suggesting room for enhancement in operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial health with a debt-to-equity ratio of 2.86, indicating high leverage which could pose risks during economic downturns. The equity ratio stands at 8.4%, showing a lower proportion of equity in the asset base. Return on equity improved to 20.6% in 2023, reflecting better utilization of shareholder funds, but the high debt level remains a concern.

Cash Flow

Free cash flow showed a modest growth of 9.6% in 2023, indicating improved cash generation capability. The operating cash flow to net income ratio is 1.36, which is positive, suggesting that earnings quality is decent. However, the free cash flow to net income ratio of 1.11 indicates that free cash flow generation, while stable, could be improved further. Overall, cash flows are relatively stable but have room for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.76B	4.45B	4.14B	4.23B	2.81B	3.52B
Gross Profit	1.26B	1.22B	1.11B	880.71M	684.04M	925.86M
EBITDA	230.98M	218.78M	187.84M	46.41M	-125.81M	134.01M
Net Income	96.64M	89.94M	60.95M	-34.48M	-192.13M	11.05M
Balance Sheet
Total Assets	4.73B	4.63B	4.50B	4.82B	3.88B	3.94B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.02B	1.03B	970.23M	676.59M	931.69M
Total Debt	635.00M	888.64M	906.54M	1.03B	784.31M	757.27M
Total Liabilities	4.11B	4.23B	4.18B	4.73B	3.78B	3.65B
Stockholders Equity	615.40M	389.13M	313.66M	70.77M	95.10M	272.66M
Cash Flow
Free Cash Flow	0.00	75.81M	69.17M	81.23M	-270.14M	-120.63M
Operating Cash Flow	0.00	83.07M	83.18M	83.99M	-267.17M	-116.58M
Investing Cash Flow	0.00	-7.01M	-13.74M	-1.19M	14.03M	30.64M
Financing Cash Flow	0.00	-91.30M	4.53M	210.00M	-11.52M	129.85M

Tecnicas Reunidas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TRE, the sentiment is Positive. The current price of 21.18 is above the 20-day moving average (MA) of 20.24, above the 50-day MA of 19.31, and above the 200-day MA of 14.74, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:TRE.

Tecnicas Reunidas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRE	73 Outperform	€1.65B	17.12	17.19%	―	18.31%	50.40%
Sector *	52 Neutral	C$2.95B	-1.50	-3.48%	6.82%	2.89%	-49.51%
0H4K	―	€8.77B	20.72	8.59%	3.30%	―	―
0HAC	―	€15.32B	18.20	16.48%	3.74%	―	―
0MKG	―	€429.75M	0.73	-11.26%	―	―	―
0OFU	―	€2.79B	23.59	12.85%	5.67%	―	―
80E	―	€410.96M	12.71	15.36%	2.31%	―	―

Tecnicas Reunidas Corporate Events

Técnicas Reunidas Announces 2025 Shareholders Meeting with Strategic Financial Proposals

Técnicas Reunidas, S.A. has announced the convening of its Ordinary General Meeting of Shareholders, scheduled for June 26, 2025, with a backup date of June 27, 2025, if necessary. The meeting will cover a range of agenda items, including the approval of annual accounts, management reports, and the re-election of the company’s auditor. Additionally, the Board seeks authorization to issue financial instruments up to €200 million, with the potential to exclude pre-emptive rights, highlighting a strategic move to enhance financial flexibility. Shareholders holding at least three percent of the share capital have the opportunity to propose additional agenda items, reflecting the company’s commitment to shareholder engagement.

The most recent analyst rating on (ES:TRE) stock is a Buy with a EUR20.00 price target. To see the full list of analyst forecasts on Tecnicas Reunidas stock, see the ES:TRE Stock Forecast page.

Técnicas Reunidas Achieves Record Backlog and Strong Financial Growth in 1Q 2025

Técnicas Reunidas reported a record backlog of €14.928 billion in the first quarter of 2025, driven by significant project awards including the Lower Zakum project for ADNOC Offshore. The company’s financial performance showed strong growth with a 30% increase in sales and a 40% rise in EBIT compared to the previous year, reflecting robust operational execution and a solid financial position.

The most recent analyst rating on (ES:TRE) stock is a Buy with a EUR20.00 price target. To see the full list of analyst forecasts on Tecnicas Reunidas stock, see the ES:TRE Stock Forecast page.