Good morning, this is the Chorus Call Conference operator. Welcome, and thank you for joining the Trevi full year 2024 results and business plan update conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. Today's conference is hosted by Mr. Giuseppe Caselli, CEO, and Mr. Vincenzo Auciello, CFO. At this time, I would like to turn the conference over to Mr. Giuseppe Caselli. Please go ahead, sir.
Thank you very much. Good morning, ladies and gentlemen. Thanks for participating in the Global Conference Call of 2024, 2024 results and business plan update. I believe that the majority of the people, I believe all of you, know what is TREVI, our business, our line of business, and what we are doing. Just going straight to the 2024 results that I believe is the main issue that we are all gathering together today, and I think the pleasure of your presence is in terms of economic performance. Our group revenue stood at EUR 653 million, plus 11.5% compared with 2024, and this confirms our strong commitment in maintaining what we have presented to the economic community three years ago with steady growth during the three years that just passed. In terms of EBITDA, we reached EUR 83.6 million, plus 12.2% compared to the 2024 EBITDA margin results.
In terms of backlog and new order, the order intake of 2024 at December was at EUR 605.4 million, and the backlog reached EUR 700 million, EUR 701 million. This is in line with what we had at December 2023, that was at that time EUR 721 million. In terms of financial position, our net debt at December 2024 was EUR 199 million, EUR 198.9 million, minus EUR 3.1 million compared to the previous year. The free cash flow from operation is positive at EUR 32.5 million. The leverage ratio is at 2.38 at end of 2024. In terms of business plan, what we are envisaging continues to grow even in the next year to come. Of course, focusing and having a selective approach on those projects since we want to try to maintain as much as we can the positive trend that we had in the last years.
Of course, the most important element is that we are fully committed to reduce our net financial position along the plan. In terms of outlook, how did 2025 look like? As all we know, 2024 has gone, although if the results are positive, we are already in 2025 and we are working in delivering 2025. We believe that will be the outlook, the performance result in line with the company current evolution. In terms of guidance, we are envisaging as of today revenues in the range of EUR 670 million-EUR 690 million, and recurring EBITDA in the range of EUR 80 million-EUR 90 million. The net debt to further improve in the range of EUR 190 million-EUR 194 million. In the next slide, we wanted to present our evolution in the past three years.
We didn't want to go back before 2022, but if you go to our records, you can see there is a continuous growth. Comparing 2022, 2023, 2024, in terms of revenue, we have an increase of 11.5% in 2024, 2023. In terms of EBITDA, we moved from EUR 64.5 million to EUR 83 million with plus 12.2% in 2023, 2024. In the total adjusted net profit and loss, we moved from minus EUR 5.7 million to plus EUR 15.6 million. Free cash flow from EUR 13.3 million to EUR 32.5 million. Net debt from. Believe that the result speaks by itself.
There is not much to comment on those apart from the fact that we have started in 2020 our difficult restart of bringing company to what it was to a new company, and we are along the way, and these results prove again that we are in a current positive trend to achieve what everybody is expecting to achieve. What are the main projects that we were working operating in 2024 and the beginning of 2025? We have, as you can see from the presentation, we are arranging from Australia to Emirates to Tajikistan to U.S. to Philippines to Algeria to Argentina and last but not least, Saudi Arabia. Projects that is flag one is NEOM that is keep on going. To New York, Washington, North Washington Street Bridge, Hail & Ghasha in the Emirates, Metro Manila in the Philippines, the Baraki Metro Station in Algeria, and others.
has been an important block of activities in 2024 thanks to the PNRR. Currently, we are working on the Florence High-Speed Rail Link. We have started to work on the Garisenda Tower to try to secure the Garisenda Tower. We have started with the continuing building of the Malagrotta Landfill in Rome, Messina-Catania Railway, New Piazza Venezia in Rome of Metro Station Line C. I believe that all those that have the pleasure to go to Rome see our equipment and our silos just in that are invading, unfortunately, Piazza Venezia and ICA Port Terminal in Ravenna. At slide number eight, you can see the evolution quarterly by quarterly of the order intake. Just going straight on 2023, we had an order intake of EUR 741 million. In 2024, EUR 605 million. As everybody knows, the order intake is a one-off event.
A project that enters in a month rather than another can move the order intakes in a year quite sensibly. We consider that the two order intakes are quite comparable. In terms of, and this is further proven by the backlog evolution in the last two years, you can easily see that in 2024, our backlog reached EUR 700 million. That is almost in line with the backlog that was in 2023. How much is of this backlog since we are talking, we are already working on 2025, and we are concentrated on 2025 expectation and result. As of today, we are considering that almost between 75% and 80% of the backlog will be converted in revenue, unless extraordinary situation may happen during the year. This gives again a positive sign of what 2025 we could expect on 2025.
Now I will leave the floor to our CFO, Vincenzo Auciello, for presenting the numerical part of our result.
Thank you. Thank you, Gigi, and thanks everyone for joining the call today. Let's start from slide number 10, which presents a financial summary for the full year 2024 compared to 2023. As you can see from the right-hand side of the slide, our free cash flow from operation was positive for EUR 32.5 million, net of EUR 27 million of CapEx investment. We see it as a remarkable result that shows how we turn growth of margin into cash generation. Moving leftwards, our adjusted net result was EUR 15.6 million, with an improvement of EUR 4 million compared to last year bottom line. We refer to adjusted net profit because 2023 net result was boosted by the positive effect of successful completion of financial restructuring completed in 2023.
I'm mainly referring to the effect of IFRS 9 on the debt, which then will be reversed pro quota until the end of 2027. The difference of EUR 10.1 million between the adjusted and the reported net result you see in the chart is exactly the portion absorbed in the year 2024. Recurring EBITDA grew by 12% year on year to EUR 83.6 million, with slide EBITDA margin increasing from 12.5% to 12.6%. I would also like to point out that in 2024, the EBITDA reported is almost in line with the recurring because the extraordinary cost amounts only to EUR 1.8 million. Focusing on revenues on the chart on the left-hand side, there is an increase of 11% year on year on the revenues, primarily driven by our Trevi division. Moving on to slide 11, we see our revenue footprint.
This shows a well-diversified geography of our revenues, allowing us to be well-positioned in many markets and being able to capture commercial opportunity that will arise. Let's go now through our divisions result, and I start with the Trevi division, so slide number 12. Trevi division reported EUR 537.5 million in revenues, which increased by 15% compared to previous year, with a stable backlog. The revenue growth has been particularly robust in the second half 2024 versus the previous half. Indeed, in the second half 2024, we have accounted EUR 330 million revenues led by higher volumes in the Middle East and Italy thanks to the starting and progress acceleration of some projects awarded in 2023 or in the first half of 2024, which have more than compensated lower volumes in North America and Africa.
The recurring EBITDA was at EUR 73.5 million, up 5% compared to 2023, supported by higher revenue. I would say that this metric, this improvement has also boosted, has also contributed to the improvement of the overall group result, both in terms of economics and cash flow generation. Moving on to Soilmec division at slide 13, you can see revenues down by 5%, 4.7% year on year, while recurring EBITDA increased both in absolute value and in percentage of revenues. Soilmec improvement in profitability is related to the pricing adjustment and reduced procurement cost, along with an optimized performance operation favored by the operational strategy of making in-house rather than buy outside. Let's now have a look at the overall PNRR on slide 14. We have already commented on revenue and EBITDA, so I would like to point out some items below the EBITDA.
The presentation is almost aligned with last year's figures, while above the provision, the amount accounted in 2023 benefited from a positive component coming from the release of non-recurring provision for about EUR 7 million. Such release justified the difference with 2024. Moving below the EBITDA, I think it is worth spending a few words on the financial expense result. In 2023, we have accounted financial income deriving from the completion of the financial restructuring. In 2023, there were almost EUR 15 million of financial gain linked to the actualization of the restructured debt in compliance with IFRS 9. Differently, in 2022 figures, no positive effects from the restructuring of the debt are accounted.
Moreover, in compliance with IFRS 9, there are EUR 10.1 million included in financial expenses as a quarter reversal of the positive effect accounted in 2023. Plus, we have financial interest matured on the debt. Finally, income tax amounted to EUR 7.8 million, EUR 2.7 million lower than 2023 thanks to the positive effect stemmed from an exchange in the Italian fiscal loop. Let's now move on to slides that talk about the generation of cash. Let me say that the generation of cash should be a kind of obsession for our group. Looking at slide 215, at the end of 2024, we had a positive outcome in terms of operating cash flow that stood at almost EUR 60 million, with an EBITDA cash conversion of 7% and free cash flow amounting to EUR 32.5 million.
This, I would say, was made possible thanks to the strong operational results, as we see the recurring EBITDA was EUR 83.6 million. Such strong operational results, along with the improved and efficient working capital management, because we see that we had an improvement of working capital as difference between trade receivables, trade payables, and advances, so there is an improvement of EUR 10 million. The strong operational results, along with the efficient working capital management, were able to free up cash to cover our CapEx for almost EUR 27 million and to pay, as we will see in the next slide, also our net debt obligation. Moving on to slide 16, you see the evolution of our net debt structure.
At the end of 2024, we had a net debt position of EUR 221 million before IFRS 9 adjustment, with an improvement of EUR 13.2 million versus the beginning of 2024. Of course, this result has been possible thanks to the free cash flow generation of EUR 32.5 million, and such cash generation was able to cover also cash out for payments of interest on debt and dividends to minority for a total amount of EUR 14.8 million. All in all, the EUR 13.2 million as improvement between 2023 and 2024 allowed to reduce the net debt position to EUR 221 million. Adding up the residual effect of IFRS 9, the reported net debt stood at EUR 199 million, under the EUR 200 million. Let's now have a look at the liquidity and debt structure at the end of 2024. We are on page 17 of the presentation.
Overall, in 2024, we have increased our cash and liquidity of roughly EUR 15 million. Our gross debt, so gross debt, stood at EUR 311 million, higher of around EUR 11 million versus 2023. A more detailed overview is provided on the right-hand side of the slide. The increase is due to the effect of IFRS 9 plus the interest peak matured on the debt as per our financial restructuring agreement, minus the debt repaid during the year. Coming back on analyzing the net debt, so if we deduct the cash and liquidity and the other current financial assets from the gross debt, all in all, the final net debt in 2024 stood at EUR 199 million. Our leverage ratio as net debt on recurring EBITDA landed at 2.38, showing our continued support in the leveraging our balance sheet over 2024.
Just for the info of the audience, as per financial restructuring agreement with the bank, such ratio in 2024 was set at 3.25. Being our final ratio 2.38, that means that we largely met the covenant. Let me now hand back to Gigi for our business plan update and closing remarks.
Thank you very much, Vincenzo. Thank you very much for your explanation. It was concise and precise. As you know, we are shifting from, we are in the process, and we are shifting from the restructuring process to a phase of growth and value creation. What are the main pillars that we are building on our business plan for the next years to come? Definitely, we want to keep on growing in terms of revenues, but we want to keep on growing with an extremely selective approach. We are seeing that around the world are coming out different opportunities due to a boost that the various government in the various areas want to give to the infrastructure activities. There are businesses to be pursued.
At the same time, we do not want to end up in a situation where this type of activities will become a poison to our result. We want to increase volumes, but at the same time, we want to improve in terms of profitability by being more selective in the various business opportunities that we have around the world. In Soilmec, what we have to do, finally, after a long process that lasted, that is, keeps on going, but definitely the majority has been done, we were able to completely rethink the way of assembling our equipment. Now we have a process that has improved in terms of KPI, in terms of efficiency. We are now focusing on the commercial activities around the world. Since last year, we have seen that the market was not so as it should be.
It's a market that is affecting not just equipment of Soilmec, but the equipment of our peers, as well as many other areas of the business in terms of manufacturing. Of course, it's worthwhile to repeat more and more that we have to improve in our working capital management in order to continue to leverage our financial situation. Last but not least, we are aiming and striving for a sustainable business growth. What are the figures that we are looking at in the next four years? As we know, 2024 is, as stated, presented by Vincenzo, the revenues stood at EUR 663 million in the Trevi Group. In 2024, we are looking in a range between EUR 670-EUR 690 million. In 2028, we are looking at revenues above EUR 730 million.
This, again, we want to grow, but we want to grow, maintaining our level of profitability that, if you compare to our international peers, is already at a reasonable level. In order to not lose in terms of profitability, we have to be selective. This is the reason of our forecast in terms of revenue. In terms of recurring EBITDA from the EUR 83.6 million of 2024, we again will be looking at the range of EUR 80-90 million to reach above EUR 100 million in 2028, with an increased percentage of 8%. In terms of free cash flow, from EUR 32 million to a cumulative 2025-2028 of about EUR 150 million. Net debt from the current December net debt position of EUR 199 million to below EUR 140 million, so minus EUR 50 million in the next four years. In terms of leverage ratio, from the current 2.38 to go around 1.4.
These are the key elements in which we have built our business plan. Our business plan, I would like to mention, has been built not from an approach top-down, from our usual approach since I was involved in this company in 2020, bottom-up. We are building from the bottom and raising to the top. We do not do numbers to please the market or to please the situation. We build up numbers on what we believe can be done and what we are seeing, effectively seeing in our future. This is the reason that if you go back even before 2022, that is the slide that we presented in the beginning, we always maintained what we have said in terms of guidance. We were steady in maintaining our guidance. This is the reason why we will not change our approach.
I believe that in this business, the only real approach, the only correct approach, the only sustainable approach is a bottom-up approach. Regarding the two divisions, as you can see, Trevi that is currently at EUR 537 million, we go above the 2025. We are foreseeing in the range of EUR 525-EUR 540 million. 2024 was a very strong year for Trevi, especially the third quarter. Those that have participated in the Far East Conference call and we met in our roadshow in the first semester was low, but I was mentioning that the second semester will be stronger than the previous year semester, fortunately due to the capability that we have to do works, to organize works, and to be able to deliver results. In the third quarter, we have outperformed. This is the reason that is of the result, the good result of 2024.
In terms of EBITDA, we are moving from EUR 73.5 million, that is the current EBITDA, to a range of EUR 70-80 million. To 2028, our effort, our target, our aim is to be above EUR 80 million. Of course, EBITDA in terms of amount, absolute amount, and percentage is driven by the market, depending which market you have opportunities and in which market you want to operate. Please, we have to remember that in 2024, the Italy market grew up almost from the initial EUR 50-60 million to EUR 90 million. A tremendous increase. The Italian market has a lower EBITDA compared to other parts of the world. Soilmec 2024, we reached EUR 145 million. We are striving in 2025 to reach EUR 150-160 million. In 2028, to be above EUR 170 million. With an increase of a compound annual growth rate of 4%.
In terms of EBITDA, that is the elements that give more confidence from the past year to today. We have EUR 13.2 million. Our range in 2025, we foresee between EUR 13-16 million and in 2028, EUR 20 million. The growth will be basically driven by the fact that we are putting on the market new equipment with new types of equipment, equipment that will fit the market better than those that we have produced so far. We strongly believe that this will be really appreciated by the market in terms of performance, in terms of logistics, in terms of efficiency, in terms of pollution, if it reduces the footprint pollution. If you go to the next slide, although it is quite populated, there are a lot of projects that are mentioned.
Briefly, we can say that we are extremely focused on North America that in 2024 was not performing as everybody was expected due to various reasons. Currently now, we have seen by the end of the year, after the presidential election, there was a blooming of tender that was flooded in the market. Of course, in this situation, we have to be careful to try to be selective after a period of stagnant opportunity to pick one those that are extremely more effective for our policy in terms of improving our EBITDA margin at the same time to improve our revenues stream. We just mentioned some from Potomac to Palisades to MINTEX to NUCA. In terms of South America, that stands at only 4% of our worldwide revenues, so quite marginal compared to the other countries.
The reason is why, because before in the past years, five years ago, we were trying to take whatever was providing the market in the different countries outside of America. Of course, with having small jobs around South America, at the end of the day, the result was negative. Now we are concentrated on what we call special projects. Those projects that have a certain type of profile in terms of expected margin. We are going to project that they are complex, so not all can participate and draw down the level of profitability. This is the reason that it stands at 4%. We are currently working in an oil tanking project in Argentina. As you can see from the presentation, we are concentrating in Argentina as of today because this is the only place where these types of projects are available.
Europe, we are concentrated again on the PNRR in Italy. We are trying to secure a project in Sweden, in Albania with a port. We just started our operation in the Spanish market. Last year, I was mentioning to you, financial community, that we were trying to enter in Spain. We got a contract for the Barcelona Metroline. We will start operation in the next month, before, within the first semester. In the Middle East, that is, as in a share of 44% of our portfolio. Of course, NEOM, just to mention the one that in the recent year has been quite a constant in our revenue stream. We have an incredible number of projects in UAE that is literally blooming in terms of opportunities. We will be trying to be involved in the railway between UAE and Oman.
It's a project that is on the shelf since quite a while, but currently, it seems to be that it's becoming a reality. We have different projects in Kuwait where we are operating since many years. Africa is the same. We have the same approach as South America with a slight difference. For instance, in Algeria, we will be involved in the construction of one station in the Metro Algiers, the new section that we start soon in the next month, I can say weeks. Nevertheless, we will be looking for special projects where we can have an added value. As you know, we are working in Algeria since more than 50 years. We will keep remaining in Algeria, but we will be concentrated on those projects that we believe can have a result in line with our own expectation.
We are trying to see an opportunity in Senegal. It's a dam, so activities that are pertinent to our core activities, not activities just for doing something. We are concentrated in those core activities that, A, have a barrier, a technological barrier entry, B, are expected to be profitable, C, that are complex projects. Because only if we have this type of approach, we can have the result that we can expect. We are not looking for revenues. We are looking to profitability and conversion EBITDA to cash. The metro station in Egypt. Asia-Pacific stands at 11%. Again, Philippines where we have a track record, historical track record, quite important in the past, but nevertheless, Australia. Finally, New Zealand.
New Zealand where we had a kickoff project, kickoff meeting a couple of weeks ago where we are involved since quite a while in alliance with the client where we are re-entering after so many years in very complex activities and project. That is the Arapuni Dam Phase II. What I can say in brief, that we can see right now that since the U.S.A. started physically to have a number of activities, not only from the independent space, but with my recent visit in the States, they are saying in the market, managed really to flow, we expect to increase our share in the American market and as well in other parts of the world.
For instance, we are trying to see an opportunity in Mexico that is not mentioned in the slide, but we are really pursuing other countries where we can be of a certain value to the client, and in return, we can receive a certain value in profitabilities and revenues. In terms of commercial opportunities, we see a real robust and stable commercial opportunity in the midterms. Going to Soilmec, as you know, the majority of our market is on the piling rigs. 71% of our sales are on the piling rigs. Then crane hydromill, 12%. Micro-drilling, more or less the same percentage. Services and remaining is the remaining 6%. What I can say is that, as you know, to work on a model that can be attractive to the market and can be really a game changer in our level of revenues and sales, it takes time.
We are, for instance, working, and we have started already to produce and sell, for instance, hydromills that are extremely compact and can be used either with a traditional endothermic motor or full electrics. They are currently sold and start to operate in France. That is very compact or flexible, can be compact or not compact at the same time. We spend quite a number of resources and hours in order to develop that. We stand in that we have invested in the piling producing the equipment of the new line Blue Tech that are extremely more efficient, less fuel consumption, more friendly to the environment. We believe that those equipments will have something to say on the market. Last but not least, we have rejuvenating and completely changing the micropile design and production that will be on stream by 2026.
Basically, the Soilmec trend that started five years ago first was fixed in terms of rationalizing the production site, then changing the way of producing from island mode to online, then improving dramatically the efficiency of the production together with streamlining our sourcing activities for the components of the rigs. At the same time, we started the process of re-engineering the majority of those equipment that has a high value in terms of returns. Now we have started the real production and the sales of those equipment. As I was mentioning, hydromills that has a new concept that has been already sold on the market, new piling rigs that have an important impact of our revenue. Two of those, for instance, will be sold in the American market already in 2025 plus other technologies.
Last but not least, the engineering of the micropiles is ongoing, and they will be starting to be sold on the market by early next year. In terms of closing the market, what do I have to say more? I have to say that 2024, we have quite good results. The numbers speak for themselves. There is not too much to say. It is three consecutive years of full delivery in operating result in line with our business plan. There is a positive cash flow generation. Finally, now we are looking with a more and more convinced and positive outlook for next year to come. Like something extraordinary will happen, but unfortunately, this will be out of our control. Thank you very much for the time that you spend to listen to what we are saying.
We are, of course, aiming and willing to answer to any of your questions.
Thank you. This is the conference operator. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Emanuele Gallazzi, EQUITA. Please go ahead.
Good morning, everybody. Thank you for the very detailed presentation. I have, let's say, three questions. The first one is on the Saudi, as basically the Middle East reached 40% of your revenues. Can you just comment a little bit more about the trend in that area?
Are activities going now at full speed at NEOM, and do you have, let's say, visibility, or do you expect an acceleration of orders in the short term from Saudi? The second one is on Italy. Clearly, a very strong performance in 2024, I believe, due to the NRP project. I just try to understand if you see Italy as a stabilizing market going forward, or if you see, let's say, still interesting commercial opportunities for the Italian market. The last one is, can you just provide a guidance on the order intake for 2025 and on the net financial charges? Should they be close to EUR 20 million, so basically in line with 2024, or, let's say, slightly lower or lower? Thank you. Should they be close to EUR 20 million, so basically in line with 2024, or, let's say, slightly lower or lower? Thank you.
Thank you very much. I will try to give you as much information as I can at the best of my knowledge today. The first question was relevant to Saudi Arabia, okay? And Middle East in general. Now, as I was trying to say before, maybe I was not so clear, at the current point in time, Middle East is really booming with activities. When I say booming, it is that Emirates are investing a lot of money in not just infrastructure, but also big complexes. In the Middle East, currently, the situation is quite interesting. In terms of Saudi Arabia, NEOM, NEOM, as you know, we had the intuition to be there when nobody knew what was NEOM. We moved the equipment in the middle of nowhere, and we were the ones that did the test pile for starting this incredible adventure so far.
We were believing in that, despite the fact that there was a lot of pessimism and many, many didn't know what NEOM was, not even the area where it was. Now, of course, NEOM, as you read in the press, has been a lot of rethinking on NEOM on the line where we are currently working. Now, definitely, a part of the 2.4 km of the line will be built. We are currently doing the work order number six that has been awarded to us. In the beginning, there were many companies that arrived at NEOM because they were believing that it was a bonanza in El Dorado. For a reason or another, it's out of our control, there was a sort of rethinking of the project. We remained there. I was there constantly in contact with the people in NEOM.
I'm going there next week just again because we were believing that this project was moving ahead. As you know, in one of the blocks, the 2.4 kilometers, one of the stadiums for the World Cup has been presented in one of the blocks. One of the stadiums that the International Football Association will choose is one of those that will be built in one of these buildings. This is the reason why we strongly believe that this project will continue. Of course, it cannot continue forever and not at the pace that, for instance, was at the end of 2024. We need an element that we count on. Oman, Oman has been for us a continuous amount of works year by year. Nothing extraordinary, but constant. The same as Kuwait.
We are ready to take opportunities in the Middle East wherever that will happen. As you know, in the Middle East, there is a major, major project that will be, as the press says, awarded by the end of the year or early next year, that is the high-speed train between Dubai and Abu Dhabi. Of course, we hope to be able to participate to this opportunity somehow. This gives you another element of value of how the market situation in that area is going. Regarding Italy, Italy, I see a commercial opportunity. Now, thanks to the PNRR, a lot of activities are moving ahead. We are again trying to see. We are currently at more or less EUR 90 million per annum in 2024, correct if I'm wrong, Vincenzo? Correct. In terms of revenues in Italy.
If you go back just a few years back, we were at EUR 20 million-EUR 25 million. We improved, we increased four times our revenue stream in Italy. This, of course, goes together with an increase of equipment, resources, and the like. Since Italy is very fluctuating, we were very, very careful to invest money in a market that today is and tomorrow is not anymore. At least we did in a very sustainable manner so far. I believe that we hope that this market will stay stable for 2025. 2026, I am certain now.
This is the reason why we are working on many other opportunities around the world in different places like Mexico, for instance, in order to have markets that can balance what we are going to have less in different countries like Italy or Saudi or where we have a lot of activities today. In terms of order intake, I believe that we'll be in the range of order intake this year plus 5-10%. Our order intake is a positive, an extremely positive sign on one side. On the other side, I want to be at the pace of doing works because I don't want to have an order intake that is aged. Because when you get a contract, you get a contract at a certain price.
Due to the evolution of the situation around the world, you do not know how the price of what you need in terms of material, for instance, or equipment you have to use. I do not want to have an aged order intake or aged backlog. I want to take contract. At the same time, I want to use to materialize this contract in revenues. This is the reason that we do not want to have an excess of backlog. We do not want to risk. We do not want to gamble with the cost of material that may increase, cost of equipment that may increase, or any type of situation that can put at risk our expected profitability. It is a caravanserai. Whatever we get, we want to transform in revenues. I leave the floor to Vincenzo for the net financial position.
Okay, Emanuele. I think your question was about the financial charges in 2025. Correct. In financial charges in 2025, there is a component in line with 2024, and it is a non-monetary component coming from the IFRS 9 quota. EUR 10 million was the quota of 2024. In 2025, we'll have the same quota. However, we see in reduction the component of financial interest on the debt because if we also have a look to what is the forward evaluation of the interest rate, we see it down compared to 2023. We are accounting, we are expecting lower interest rates versus 2024. Overall, with one component that is in line with 2024, the IFRS 9, while the interest charges on the debt are on our, let's say, short-term facility in reduction.
Perfect. Very clear. Thank you very much.
Thank you.
The next question is from Gian Marco Gadini Kepler. Please go ahead.
Hello everyone. Thank you for taking my question. A couple of questions about your balance sheet. Particularly in the working capital, we see pretty big changes. Particularly, we see the work in progress that were significantly on the rise both in absolute and in relative terms. If you could explain in detail why this item is increasing that way. Also, we see a strong improvement in the DSO. Apparently, shorter cashing times. Is there a sustainable level? Because looking at your recent history, it is strongly below. Is this a one-off item or something that can be replicated going forward? Very last questions about the minorities on the net income. If we can expect this amount or this share of minorities to be again there in the next years. Thanks.
Okay. I'll get the questions. Thanks, Gianmarco.
I start from the very last one about the minorities. The result, the net result, the reported net result is EUR 5.5 million in 2024. The post-minority is EUR 1.5 million. We see the difference is EUR 4 million, mainly attributed to the performance in two countries, Nigeria and Australia. I will say that considering also our business plan, our footprint, our opportunity along the world, maybe we will have more or less the same level of attribution to minority. We see Nigeria in line, a bit reduced compared to 2024. We see Australia in line. I think we may have the same level of attribution to minority in 2025 and along the plan because Australia anyway plays an important role in our business plan. While talking about, I think you have mentioned the work in progress and also our reduction in trade receivables.
Exactly, we had a reduction in our DSO because from 98 days, we went down to 78 days. We see it a kind, and this is coming from, let's say, a trend reduction in the last two years. Seventy-eight days, of course, I think it's more physiological for our business to generate cash. We are strong focused to keep at least this level that we will work to have even a better ratio. However, 78 days is, of course, a remarkable result, and we start from this. While about the work in progress, let me elaborate a little bit about the work in progress. For our business and above all for Trevi Division, work in progress are a normal component of our working capital.
The increase we had at the end of 2024 in work in progress is due to the growth we had in the year thanks to the starting of projects acquired in 2024. Work in progress can be considered as a healthy component of our working capital as long as the work in progress is driven by the acceleration of progress in our project. In this case, it can be considered as a healthy component of our business. We are exactly in this case because, as you can see in the balance sheet, the work in progress at the end of 2024 was about, we had an increase of about EUR 60 million. It is exactly due to the acceleration of progress we had in the second half of 2024 and above all in the last few months of the year.
Because work in progress are mainly revenue earned in the last part of the year, we are not invoiced, but have been invoiced at the very beginning of 2025. We are in this case, so that is why we think that it is even a healthy component because it shows how we have accelerated in our progress. While work in progress is not a healthy component if it includes a massive amount of pending revenue and disputed revenue, it is not our case. I hope this replies to your question.
Yep. Thanks. If I may, another one about the target to 2028. If I am not mistaken, you mentioned a target of less than EUR 140 million in net debt by 2028. If I am not mistaken, the previous plan was pointing to around EUR 130 million by 2027.
We can assume it's a little bit more conservative view on the leveraging over the timeframe of the plan. It's considering the new plan, but it's also considering that we want to be a bit conservative because there are many components building the plan. There are commercial components. There are evolution of our revenue. With that, we think that in 2028, we can go lower than EUR 140 million. In the revision of the plan, we get a bit more conservative. If we look at the cumulated free cash flow of about EUR 150 million during the plan, along the plan, we are confident that the new target, lower than EUR 140 million, that is a kind of conversion towards what was already published in the last year in 2027, is healthy, is robust, and is in line with what we expect also from an economical standpoint.
All right. Many thanks.
As a reminder, if you wish to register for a question, please press star and one on your cell phone. For any further questions, please press star and one on your cell phone. Mr. Caselli, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.
Hello. Thank you very much, Liz. Thank you very much for the time that you spent with us. I hope that we have been exhaustive. Always, we are here to answer questions whenever you would like to talk to us. We look forward to bring positive results also in 2025. Thank you very much again.
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