Tecnicas Reunidas (TRE) AI Stock Analysis

• Market Cap: €2.31B
• Dividend Yield: N/A
• Average Volume (3M): 173.07K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.14
• Revenue Growth: 41.87%
• EPS Growth: 55.79%
• Country: ES
• Employees: 10,451
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.64
• Shares Outstanding: 80,301,260
• 10 Day Avg. Volume: 187,166
• 30 Day Avg. Volume: 173,068
• PEG Ratio: 0.18
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 17.14
• 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: €39.00
• Price Target Upside: 31.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.62
• Revenue Forecast (FY): €6.60B

• Rating: 59 Neutral
• Price Target: €31.00 ▲(4.66% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by improving financial performance (stronger growth and sustained profitability) but is held back by margin volatility (notably the 2025 gross margin compression) and only neutral technical momentum. Valuation is moderate based on the provided P/E.

Positive Factors

EPC expertise and scale

Tecnicas Reunidas' core EPC business and proven capability delivering complex, large-scale oil, gas and power projects creates durable competitive advantage. Scale and technical expertise support win rates on major contracts, long project backlogs, and higher switching costs versus smaller rivals.

Material revenue re-acceleration

A sustained rebound in revenue reflects improving project awards and execution capacity, indicating healthier backlog and utilization. This structural recovery supports multi-period revenue visibility and stronger operating leverage as fixed project capability is deployed across higher volumes.

Positive and improving cash conversion

Consistent positive free cash flow and high conversion of net income to FCF enhance the firm's ability to deleverage, self-fund working capital, and invest in capabilities. Durable cash generation reduces reliance on external financing and supports longer-term strategic investments.

Negative Factors

Sharp gross margin compression

A sudden drop to ~4% gross margin signals structural pressures—project mix, pricing weakness, or rising input costs—that degrade earnings quality. If margins remain volatile, the firm will face weaker cash buffers and reduced ability to absorb cost overruns on fixed-price EPC contracts over time.

Historic high and still-meaningful leverage

Although leverage has improved, prior extreme swings and still-meaningful debt for a cyclical EPC company limit resilience. Elevated leverage increases refinancing and covenant risk during downturns and constrains flexibility to bid competitively on large projects that require balance-sheet strength.

Working-capital and cash sensitivity

Dependence on project timing and heavy working-capital needs produces persistent cash volatility. This structural sensitivity can force short-term external financing, raise funding costs, and amplify liquidity stress in slow contract cycles, limiting sustainable investment and bid competitiveness.

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 generates revenue primarily through contracts in the engineering and construction sector, focusing on large EPC projects. The company makes money by bidding on and securing contracts with clients in the oil and gas, power, and industrial sectors, where it charges fees for its engineering services, project management, and construction work. Key revenue streams include fixed-price contracts, cost-plus contracts, and time and materials contracts, which provide various levels of risk and return depending on the project. Additionally, TRE often enters into partnerships and joint ventures with other companies to leverage shared expertise and resources, which can enhance its competitive edge and increase project opportunities, contributing to its overall earnings.

Tecnicas Reunidas Financial Statement Overview

Summary

Financials show a clear multi-year recovery with materially stronger revenue growth and positive profitability in 2023–2025. However, the sharp 2025 gross margin compression and still-meaningful (though improving) leverage reduce confidence in earnings quality and resilience.

Income Statement

Revenue growth has re-accelerated materially, rising to ~27% in 2025 versus low single-digit growth in 2024, showing improving project activity and execution. Profitability has also improved versus the 2021–2022 loss period, with positive operating and net margins in 2023–2025. However, reported gross margin compresses sharply in 2025 (~4%) versus ~21–27% in prior years, which introduces concern around project mix, pricing, or cost pressure (and creates volatility despite higher EBIT and net income). Overall: clear recovery and growth, but margin stability is a key watch item.

Balance Sheet

Leverage remains meaningful but is improving: debt-to-equity declines from very elevated levels in 2021–2022 (over 8x and ~15x) to ~2.9x in 2023, ~2.3x in 2024, and ~1.4x in 2025 as equity rebuilds. Returns on equity are strong in 2023–2025 (roughly 19–28%), consistent with the earnings recovery. The main risk is that leverage is still high for a cyclical engineering & construction profile and the balance sheet has shown large swings in prior years, so resilience in a downturn is not yet fully proven.

Cash Flow

Cash generation has turned positive and remains positive in 2022–2025, with free cash flow tracking net income reasonably well (free cash flow is ~83–97% of net income across 2022–2025 and ~89% in 2025). That said, operating cash flow is small relative to the company’s size (low operating cash flow relative to revenue), suggesting working-capital demands and project timing can heavily influence cash results. The earlier period (2020–2021) also showed negative operating and free cash flow, underscoring that cash-flow consistency is still a point to monitor.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.09B	6.47B	4.45B	4.14B	4.23B	2.81B
Gross Profit	1.31B	272.60M	1.22B	1.11B	873.09M	684.04M
EBITDA	248.42M	329.70M	218.78M	187.84M	46.41M	-125.81M
Net Income	106.09M	156.70M	89.94M	60.95M	-37.13M	-190.44M
Balance Sheet
Total Assets	5.26B	5.88B	4.63B	4.50B	4.82B	3.88B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.14B	1.02B	1.03B	970.23M	676.59M
Total Debt	965.24M	811.60M	888.64M	906.54M	1.03B	784.31M
Total Liabilities	4.78B	5.32B	4.23B	4.18B	4.73B	3.78B
Stockholders Equity	467.71M	553.94M	389.13M	313.66M	70.77M	95.10M
Cash Flow
Free Cash Flow	0.00	125.97M	75.81M	69.17M	81.23M	-270.14M
Operating Cash Flow	0.00	141.61M	83.07M	83.18M	83.99M	-267.17M
Investing Cash Flow	0.00	-16.02M	-7.01M	-13.74M	-1.19M	14.03M
Financing Cash Flow	0.00	-745.00K	-91.30M	4.53M	210.00M	-11.52M

Tecnicas Reunidas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.62
• 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:TRE, the sentiment is Neutral. The current price of 29.62 is below the 20-day moving average (MA) of 33.31, below the 50-day MA of 31.09, and above the 200-day MA of 26.09, indicating a neutral trend. The MACD of 1.12 indicates Negative momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:TRE.

Tecnicas Reunidas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSJ	76 Outperform	€568.98M	15.46	17.08%	1.89%	3.23%	12.32%
ACS	65 Neutral	€27.34B	28.42	19.75%	2.38%	25.47%	7.63%
SCYR	65 Neutral	€3.30B	38.49	10.80%	5.28%	2.03%	-32.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ANA	60 Neutral	€11.88B	14.75	18.00%	2.87%	4.87%	339.22%
TRE	59 Neutral	€2.31B	14.76	24.64%	―	41.87%	55.79%
OHLA	52 Neutral	€540.53M	-260.67	-6.41%	―	1.39%	72.34%