This morning, we reported an adjusted EBITDA of €176,000,000 which translates into a margin of 5.2%. All our highlights are the backlog of €12,900,000,000 the solvency of 73% and a liquidity position of €500,000,000 These numbers confirm the success of implementing our strategy and was delivered by good performance of all business activities. Also our performance supported BAM to return €93,000,000 via dividends and a running share buyback program to shareholders in the first half of twenty twenty five.
Let's zoom in on some details of our income statement. Group revenue was up by 7%, and it's good to see that both divisions contribute to the top line growth. Compared to last year, our reported adjusted EBITDA improved by 40%. This was a result of the increase of revenues in combination with substantial higher adjusted EBITDA margin of 5.2%. The announced divestment of our 50% remaining stake in Infosys was completed on the March 5.
Depreciation and amortization totaled €71,000,000 The increase is among others a reflection of our increased investments last year in sustainable and modular solutions, including the continued electrification of our plants and equipment. Our finance result is €3,500,000 higher compared to last year. This is mainly explained by interest income related to the payments arrangements with PGGM for the divestment of our Infosys' Bank. The tax in our profit and loss account is 11,000,000 Euro, which implies an effective tax rate of 10%. This low tax rate is the result of the revaluation of our deferred tax assets for the tax losses as part of our regular reassessment.
For the full year, we expect a tax rate between 10% to 14%. Bottom line, BAM reports a net income of €102,000,000 This is almost a doubling of our earnings per share to €0.39 versus the €0.20 reported a year ago. Moving on to the cash flow statement. The operational performance resulted in a strong cash flow from operations of 151,000,000 In the first half year, the cash flow from working capital was €266,000,000 negative. This reflects the normal seasonal pattern of Swiss working capital and included also €19,000,000 of investments in our residential development positions like in Beldhoven, Cromani, and Reispe.
To put things in perspective, in a comparable period last year, our investment was limited to €2,000,000. It's good to see that trade working capital efficiency slightly improved to minus 12.3% versus the minus 11.7% at year end of 2024. The net cash flow of investing activities was on balance zero, and to mention the largest building blocks, our capital expenditures was 46,000,000 Euro, and BAM received the first tranche of the 54,000,000 Euro related to the divestment of Infosys. The second tranche of the same amount is expected before the end of the year. Cash flow from financing activities of minus €111,000,000 included the payment of dividend in cash of €66,000,000 and the share buyback totaling €27,000,000 The remainder of the cash flow from financing relates to leases and an increase of debt to fund new development positions.
Our liquidity position remains solid at 500,000,000.0 Euro, which is comparable with our position mid twenty twenty four. Next to our financial position. Our net cash position after lease liabilities of €153,000,000 is around the same level as last year. Shareholders' equity was slightly lower versus full year of 2024, which is mainly explained by the payment of dividend, this year fully in cash and the start of our share buyback program in May. Our solvency is 23%, the same level compared to full year of 2024.
We had a strong net result in the first half of the year of EUR102 million, but in the first half year we also distributed EUR93 million to the shareholders via dividends and share buybacks. Now back to you, Harith.
Thank you, Henry. I would like to conclude with the market trends and our outlook for full year 2025. Here we show you a photo of the works we execute on the Transpennine Wood upgrade, one of the largest investments in England's rail infrastructure. We are pleased with the development of our order book, which was maintained at a high level of €12,900,000,000. This while we continue to focus strongly on order book quality and selective tendering in key markets, where we have a proven competitive advantage.
Now over to the market trends. In The Netherlands, the residential market remained strong, driven by stable consumer confidence. The non residential market is cautiously optimistic, specifically in the healthcare, education, and office sector. In civil, there are many attractive growth opportunity, driven by the energy transition and the transport market. There remains a strong rationale for essential investment in energy transition, infrastructure, defense, and sustainable and affordable homes.
The construction market in The United Kingdom is also expected to grow. Energy security remains a key focus for the UK government. The recently announced ten year infrastructure strategy from the UK government is also positive. And like in The Netherlands, investments in defense are expected to rise as well. In Ireland, there's also a solid demand for transport and social infrastructure.
The Irish government launched a new task force to oversee the department's program for reform, to unblock barriers and accelerate infrastructure delivery. Delivering complex infrastructure projects and new homes are essential for creating thriving communities, but this requires stability, clear planning, commitments beyond short term political agendas. Now over to the outlook for the full year. We continue our disciplined contract and risk management approach, which is a fundamental priority within our strategy to enhance our financial performance and predictability. For 2025, Baum expects to deliver an adjusted EBITDA of at least 5%, which is an upgrade versus the outlook we provided in May when we published our first quarter trading update. Now we will take your questions.
Thank you. And our first question today comes from Martin Dendiver from ABN AMRO. I
have morning. I have four questions. I'll take them one by one, if I may. And my first question is, just looking at your adjusted EBITDA margin, point 2%, if you take out that claim settlement in Germany, which is roughly $23,000,000, you've done underlying 5.3% in h one. Now in the last two years, your h two EBITDA margin has been over a 100 basis points better than your first half EBITDA margin.
And if I were solely to add h two twenty twenty four to your current h one twenty twenty five, I would get closer to six than 5%. So what is causing that relatively cautious guidance upgrade from around five to at least five? What what is keeping you back? That's question one.
Okay. Well, maybe I first take this one, Martin and I. Indeed, you you know as we always try to underpromise and overdeliver, so that's also part of this. Mhmm. We we don't see, let's say, this moment in time, reasons to believe that our results or revenue will not develop well, also looking at the order book in the second half of the year.
But it's also clear that there is still uncertainty politically, especially in The Netherlands, and also in the world. So in in that sense, we stay a little bit cautious, and, of course, try to surprise you again by the end of the year.
Okay. So it's just your your normal indeed behavior with regards to underpromising overlever. Got it. Then my second second question is on the Dutch civil engineering activities. You mentioned it had a good performance.
But if I look at adjusted EBITDA margin, it was 4.7% this semester where it was usually between 6767%. So half year last year was 6.5%. So why has that EBITDA margin dropped quite a bit actually in the first half?
Matthijn, I like to answer this question. I think this is really a fair challenge. As you already said, we are operating on a level of 4.6%, which is still healthy and in line with our projections. If you are comparing the figures also, let's say, with the same period a year ago, at that moment in time, we saw some one offs, completion of a larger and a couple of other project projects as well. We saw in the 2025 a lower a slower start, specifically in roadworks, and we are still expecting an acceleration in the second half.
So overall, still satisfied with the performance of our Dutch civil engineering activities.
Okay. So no difference between the large projects businesses, business and the, let's call it, the regional ones. The performance is equal in both?
Yeah.
Okay.
Thank you. Moving on. My third question is with regards to Construct UK. You've made our lives quite a bit more difficult by transferring these businesses again. So facility management and property development is now included in Construct UK.
If you were to exclude those, was BAM Construct UK actually profitable at the EBITDA level? And when do you and if if it wasn't, when do you expect Construct UK to get to those margins that you need in order for BAM overall to get to 6%?
No. In in indeed, that percent wise, it doesn't make a big difference because, indeed, there was a huge increase in profitability constructs on its own. And to be honest, of course, that also has to had to do with the finalization of the Call of Life project in Manchester because we've imported from that one. We had some other disappointments in construct over the last couple of years, and these disappointments, or disappointed projects, better to say, are now out of the order book. So we are now focusing again on profitable projects, being very selective in tendering going forward.
We had some there's some very attractive tenders coming in. So also standalone without the Ventures results, there's a strong recovery in UK contract.
Okay. Got it. And then my fourth question, I was slightly puzzled. This is question for Henry. Puzzled by the working capital cash out of $2.66, and it was lower last year even though your trade working capital has actually become more negative, which is positive when you grow and you've grown.
So how can working capital cash outflows be more negative if you have a positive trend in your working capital in your trade working capital? Capital?
Yeah, Martin, the main driver is additional investments in our property business. So we already said something about it. We included 90,000,000 of investments in property, which is reported on the line item working capital. If you compare it to the same period in 2024, at the moment in time, as already said, we invested just 2,000,000, so I think it's more positive if you compare that with the same period a year ago. Mhmm.
And really positive, we're able to invest in the in the 19,000,000 of property position, which is really helpful to drive that business going forward as well.
Correct. I had not fully realized that. I have two more other questions, but I'll go back into the queue for now. Thank you.
Thank you. And our next question now comes from Martin Verbique from The Idea. Please go ahead. Your line is open.
Good morning. It's Mark Brekof, The Idea. Firstly, you have completed and handed over the Danish school project and coop live in Manchester. Did you have to take additional Because there were still some issues in Denmark that that much, but still the COP one.
Or did you provision for all of that already last year?
The answer is yes.
Through provisioning all last year?
Yeah. There was no additional cost in this in this half year, this quarter.
Thanks. With regard to the Rolls Royce joint venture for SMRs, could you give us some kind of indication how much work for Bomber involved in revenues?
Yeah. I I think that's you have to see that we are, let's say, having the IP on a on a system that we developed for an overarching building when the people of Rolls Royce are building the nuclear installation. So after the completion of the nuclear installation, this bomb temporary building will be removed. So that are, let's say, substantial, that will be substantial investments for these temporary buildings, but of course it all depends as well on the number of these smaller nuclear plants that will be built all over Europe, is the plan anyway by Rolls Royce, of course. So, probably, it will start with a couple of these installations in The UK to be tested, and, of course, it it's it's not it's linked to all kind of permitting and and and investment by the UK government, and they they now announced 30,000,000,000 to be to be available for that investment, so it seems there is progress there.
And maybe by the '27 or early twenty eight, we will see the first of these test installations coming through within The United Kingdom. And and then there are, let's say, if if that happens for Balm, it will be in the hundreds of millions coming into our revenue stream.
And then lastly for now, the National Children's Hospital, do you expect that to be completed before year end?
Yeah. That's true. For the question or or statement?
Now this question and then as a follow-up, do you also expect that also expect the the complete settlement on all the cost and with the with the with the National Children's Hospital that it would that it will be settled as well before you
No. I think I think we we discussed this this this hospital now, I think, anyway, for me, for the fifth year in a row in these meetings. Of course, we like to complete it as soon as possible. We are very proud of the result of what we are doing off there, but the the fact of the matter is that the customer is coming with design changes all the time still now, and that means that we, as a built only company, we have to implement all these changes, and that leads to delay on delay on delay. So where we are now looking at the change orders we have in our portfolio, we plan to hand over the the the project, the the building before the end of the year.
And then then there is still discussion, of course, on expedition, of course, for all these changes with the customer.
And, Lars, I just like to get back to the to the SMR. This initial order, I presume it's not yet in your order book.
No. In our order book are only signed contracts.
Thanks very much.
Thank you. And from ING, we now have Thijs Soldeste with our next question. Please go ahead.
Yes. I also had a question on the U. K. Building division because I feel a bit wrong footed because I thought in the morning and there were more results out, okay. I'm glad that this is in the positive territory, but, what I understand now is that the complete venture, revenue and results have been incorporated in the building building business of The UK.
So there is still an operating loss underneath, something between minus 15 and minus five. Is that correct?
Thijs, good morning. This is Henri. That isn't correct. So if you talk about the facility management business and property, which is included now in the Construction UK line item, then we are talking about lower level of revenues and results. So Construction UK only without facility management and the property business is acting on a positive level now, although it's still low, but they are moving to 2.5% EBITDA.
Okay. And and let's say, yeah, the the historic performance before the losses were were reported was an an average EBITDA margin about 3% for that building business in The UK. Is that something we can expect it go back to in the second half? Or or will happen more gradually the recovery?
Yeah. So we are making incremental steps, but I think it's good to know if you're talking about the backlog and the order intake, then we are acting and trading on that level already.
Okay. Okay. And then I have another question. Yeah. In the the Dutch division, there is a three point nine million result in older. What what is that result?
Can you repeat the question, Thijs?
Yeah. In the in the Dutch division, in the segment other, there's a 3.9 EBITDA contribution. What is that?
Yeah. They're always, let's say, on the consolidation level of a division, some other results, which has to do, for example, with eliminations, like internal equipment, revenues, and those kind of stuff.
That's a kind of a one off.
Yeah. Yeah.
If you compare it also with previous years, it's normalized around zero.
Yeah. Okay. Yeah. And then I also had a question about the dynamics in the Dutch building and property division. So I understand that part of the quite massive improvement year on year comes from the Danish school projects no longer impacting profits negatively.
But I also noticed that, yes, there's quite a drop in the sold houses volume, like 70%. Now I know that pricing is strong and that you have good projects, but you're also mentioning in the press release that you expect a higher full year number of houses to be sold. Is that now reflecting, let's say, Dutch market conditions? Or is that purely based on what Palm has yes, the projects at hand? So can you explain a little bit what the drivers are here?
Yeah. I think it's a fair question. The dynamics are still strong, and we also talked about it, of course, many times it could it could have been much better with more positions and permitting, let's say, speed of the Dutch government, nitrogen issues, what have you. But still, looking at our flow deal flow for the for the second half of the year, we are confident about this, let's say, target of above eight 1,850 houses. And I'm also happy to say that over the last week, we signed a deal with an investor for almost five hundred homes.
So that already gives us a kind of a nice basis of around 1,200 or more than that even for the second half of the year. So I think based on our, indeed, our our stream of of deals that we see, the $18.50 is is is reasonable, and that's why we are pretty comfortable to make that statement today.
Yeah. So so the first half profitability is is kind of a good reflection for how it is going with with bond projects, but also with the underlying market, the condition, good proxy for, let's say, the possibility going forward.
Yeah. I think I think you're right. There are many dynamics playing in that in that segment, of course, because you have indeed, on one hand, the positive news that we got rid of the Danish business. Yeah. And on the other hand, we see also very good progress in the non residential business in The Netherlands, which is also part of the of these numbers.
So when you see there that our strategy of focusing on on lower risk and high probability projects is is really is really working. So then on top of that, the stable results in the residential part of the business. Yeah. When you add that a lot, you get these now.
Okay. That's yeah. That's very helpful. Thank you.
Thank you. And up next, we now move to Tim Ehlers from Kepler Cheuvreux. Please go ahead. Your line is open.
Yes. Hi, good morning, gentlemen. Thanks for taking my questions. The first one would be about Ireland. In the press release, really in the presentation, you're talking about residential activities that you do there and that you expect to build, if I'm not fully wrong, 300 houses in Ireland this year, which will represent roughly 30% of what you do
in The
Netherlands. Is that a market that you plan to grow a bit? So basically, that you diversify diversify your residential activities because in the past you were not really active in any other regions with regards to that. Yeah. How shall we look at that?
Think fair challenge, fair question, of course. It's already an existing market and there is a lot of appetite over there as well. And we own a land bank for years and we are now developing the land bank, hence we are bringing a house to the market. Already lots and lots of apartments together with a government body, so to say, and we are also, let's say, selling private houses to to private customers, trading out that land bank, which is currently, as already said, part of our business.
Okay. Great. And are you planning to replenish that land bank, grow the land bank, basically just selling what you have?
The first challenge is already, let's say, taking care of the current land bank before talking about, let's say, all the kind of new strategic options.
Okay. Great. Thanks for that. Then another question would be about the cash flow. So, I mean, it looks like normal seasonal pattern, if you would adjust for the increase in inventories from the residential project in Beldhofer or the €90,000,000 How should we look at it at the full year?
Should we expect an improvement versus last year, assuming that the increase in inventories will be offset by the €100,000,000 cash in from investors of which you already got a 50% tranche. And then, yeah, just looking at operations, which should be cash flow from operations, which should be higher, so should be quite a step up,
Yes, fair challenges. So current cash position is €500,000,000 and in that cash position, as already mentioned, so we invested €90,000,000 in our property positions, but also we paid EUR 93,000,000 to our shareholders. So if you talk about the dividends, if you compare the credit to 2024 all in cash, but also the share buyback program. There's always a seasonal pattern in the upcoming period, but we are expecting it to ramp up also in the second half in line with our projections, and it's also a bit depending upon opportunities in the market. If you're talking about additional investments, for example, in property, they will incorporate it in those those outlooks going forward as well.
Okay. Clear. Thanks. And then one last question about the legacy projects. Probably already know the answer, but any updates on the projects that you don't mention in the press release, so besides Ireland and besides Denmark?
Could you share any details there? And is it still on track to, well, clean up the the portfolio outside or other than the Fairmont Bell Tunnel in this year?
Well, I think we mentioned before the the the list of these legacy projects was decreasing fast. Think we we mentioned the number of 23 of these number of these projects five years ago. Today you can see a very short list. We are finalizing indeed the new children hospital this year. Then we still have the the metro in Brisbane that we are also finalizing now, but it will take a little bit longer.
And I think then in the end, there is the the the Famer Belt project where we have a 12 and half percent stake, and and that's a big big beast. And that will only be finalized in 02/1930, maybe '31. So we will come back to that when there is news or developments. We are now preparing the first immersion of of the tunnel elements into into the sea. So hopefully, that will that can start after summer, and hopefully, we can give you some more operational details then about that project.
Okay. There would have been a follow-up question on the Finland Bell Tunnel. So there's this milestone where they put the first elements into the water, and that would be after summer, and that would give a bit more clarity how things would progress. Right? So it's something to I think that's a really important yeah.
I think, Tim, that that's an important moment for the project, of course, because then you you start the immersion process, and, hopefully, we can then can then also give some more information on planning of that project and see where we are financially as well.
Okay. Great. That's it from my side. Have a good summer break, guys. Thanks, Tim.
Thank you. And we now have a follow-up question from Martin Dendreiber from ABN AMRO. Please go ahead. Your line is open.
Yes. Thank you, operator. Henri, why was there a delay with the PTGM payment for Infosys? Because was supposed to be in the cash flow to be received in q two, at least that was the last guidance.
There was no delay, Martin. So the first payment was paid before the end of the first half, and the second one will be paid before year end. So it is absolutely in line with the signed contract.
Okay. Then moving on to to BAM Constructor, the question the Thijs asked, the historical margin, can we go back to that? You said we were based on order intake, we're roughly trading at that level. Is that the ambition level, or do you think you can improve that further given the increased focus on the educational and health care segment?
Yeah. I think it's a combination of risk and and profitability. The idea is that we focus indeed not on the, let's say, big sexy projects like Sky Studios and Call of Life in Manchester. Mhmm. Indeed, we go for these, let's say, longer term framework contracts with British government.
For example, for health care and education. And then we're not looking at schools of hundreds of millions, but maybe more, let's say, 50 to a 100,000,000 and and and schools that are, let's say, similar to each other, so we can use a little bit more industrial approach there as well. That's what we're going for, and that means a little bit higher margin, but also lower risk. So that combination, I think, leads to the conclusion that we'll look for a little bit higher margin, but especially with the low risk levels.
Got it. Got it. And then on the Dutch nonresi, which was strong, can you elaborate a little bit on that? Which segment drove that strong performance? And if you look at your order book backlog, is that sustainable in the coming six, twelve, eighteen months?
Yeah. Absolutely. So when you look at that period, I think you will see the same development for that for that segment. What we did there a couple of years is that we ago, we said goodbye to, yeah, smaller projects with with high risk levels where we could not really add our specialty. So in that segment, we are looking for the more complex projects where we can add our sustainability knowledge, for example.
Mhmm. Like, for example, the ABN AMRO with new headquarters that you probably know very well in in Amsterdam, where we are in a partnership with ABN AMRO to to deliver one of the best offices in the world, where we use also a lot of wood, for example, yeah, to bring an excellent office for the employees of ABN AMRO. And I think that is the core business of our of that segment. We're also working on the APA, for example, in Schiphol Airport, which is also in line with that with the sustainability ambitions from from Schiphol management. That are the kind of projects we wanna be involved where we can really add our knowledge and and experience.
So we're looking for projects that are like that also for the future, but we are very selective. We are very selective. So if we don't see that or we don't have that, we will not tender. But the fact is that this segment is still a bit difficult. This office segment is a bit coming back, but still difficult in The Netherlands, still a hesitance from parties to jump into these bigger projects.
Mhmm. So we very selective, but based on what people see what we are doing in these projects I just mentioned, there is an attractive pipeline coming up. There are not many, but we don't need many in that segment. We just won a few of these very attractive projects. On top of that, maybe good to mention that we also went through the portfolio of our field management or facility management in The Netherlands, and we could back there many many projects and maintenance contracts.
So that's also part of this improvement of the results of that segment.
Got it. And then with regards to h two cash flow and investments in in the land bank, should I assume that the acquisition of the Draca Terrain in in Amsterdam is a cash out in h two, or will that close in 2026? Because it is quite a material one.
Yeah. So, Batyne, that's indeed spot on. It's already acquired, signed in July, so it's part of our cash outflow in the second half of this year.
Okay. Clear. And then a technical question related to my discontent about the reclassifications. How much sales and EBITDA was transferred to the Ireland unit just to get a good grip on the underlying performance, roughly speaking. And maybe,
Martin, in the slide deck on the last page, you also find a pro form a setup of The UK division, it was in 2024 in a new setup. So that that provides some more insight.
Yeah. But that that that is already on a year year over year improvement. So you've re restated 2024, but doesn't really tell me I don't have the slide in front of me, but
doesn't really tell me what No. But I don't I don't think that you are talking about material figures.
Okay. So the performance has not been tainted or changed much by the by the reclassification?
That's it. Absolutely not.
Definitely not. And then just normally, Thijs does this, but now I'm gonna do it. Just to ask for some change in the report, could you please go back to normal reporting for q one and q three? The qualitative update is helpful, but definitely not as helpful as what you had previously. That was a questionstatement request. Clear.
And as you can imagine, I'm not going to give any promises there, but, of course, we we listen always very carefully to to you guys.
Alright. That was it from my side. Thank you very much.
Alright. Thanks.
Thank you. Yep. We have no further questions in the queue.
Sorry, operator? Yes. Then this concludes this concludes the call. Think for now, everybody, thanks for calling in. Sorry for the delay as mentioned, and I hope to to see you and and and hear from you soon. Thank you.
Thank you for joining today's call. Ladies and gentlemen, you may now disconnect.