Ladies and gentlemen, welcome to the HOCHTIEF Publication Half Year Report January, June 2026, Analyst and Investors Conference Call. I am Lorenzo, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for question at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast.
At this time, it is my pleasure to hand over to Mike Pinkney. Please go ahead, sir.
Thanks, operator. Good afternoon, everyone, and thank you for joining this HOCHTIEF half year 2026 results call. I am Mike Pinkney, Head of Capital Markets Strategy, and I am here with our CEO, Juan Santamaría, and our CFO, Christa Andresky , as well as our Head of IR, Tobias Loskamp, and other colleagues from the senior management team at HOCHTIEF. We are looking forward, as always, to taking your questions. To start off with, our CEO is going to run us through the details of another set of very strong results from HOCHTIEF, the guidance increase that we have announced earlier today and the group's strategic progress.
Juan, all yours.
Thank you, Mike and team, and welcome to everyone joining us for today's results call. HOCHTIEF has delivered a very strong result in the first half of 2026 with significant increases in revenues, profits, and orders, whilst making further positive progress in our growth strategy. A consequence of the acceleration in growth and the group's enhanced prospects, earlier today, we raised HOCHTIEF's operational net profit guidance for 2026 from EUR 1,025 million-EUR 1,100 million, versus the previous EUR 950 million-EUR 1,025 million, targeting an increase of around 30%-40% year-on-year, versus the 20%-30% before. Focusing on the first six months, HOCHTIEF sales rose by 13% FX-adjusted year-on-year to EUR 20.1 billion, driven by strong operational performance and the continuing successful strategic delivery.
Supported by expanding margins, operational net profit was 35% higher at EUR 480 million, up 41% on an FX-adjusted basis. The quality of HOCHTIEF's profit delivery is underlined by the strong cash conversion achieved. First half operating cash flow showed a year-on-year improvement of EUR 280 million or EUR 297 million pre-factoring. Over the last 12 months, operating cash flow pre-factoring stands at EUR 2.4 billion, which is equivalent to a EUR 396 million year-on-year increase. I wanted to underline that we finished June with a net cash position of EUR 72 million, a strong improvement of EUR 1.5 billion year-on-year. A further highlight of our first half numbers is the significant increase in orders.
New orders of EUR 31.5 billion continued to increase substantially, up 25% FX-adjusted year-on-year, with significant wins across our strategic growth verticals. This lifted our order backlog to another record high of almost EUR 85 billion, up 23% year-on-year, providing a strong and diversified foundation for further growth. Let's take a brief look at our performance on the segment level.
Turner delivered another impressive set of results. First half sales of EUR 14.1 billion were 23% higher FX-adjusted, driven by strong growth in data centers and supported by solid sports, pharma, and airport segments. Operational PBT of EUR 551 million was up very strongly at 49% FX-adjusted, as was the expansion in the operational PBT margin, which rose by 70 basis points to 3.9%. This substantial increase in profitability was driven by more than doubling of data center work, as well as a margin enhancement resulting from Turner's end-to-end strategy, including expanded supply chain and modularization services and increased self-perform capabilities, which includes mechanical and electrical. Operational net profit jumped 50% to EUR 400 million, underpinned by a continued high level of cash conversion with operating cash flow of EUR 416 million, plus EUR 41 million year-on-year, and this is pre-factoring in the six months period.
New order momentum remained very strong, up 39% FX-adjusted to almost EUR 21 billion, including $1 billion of semiconductor work, driving a record order backlog up 39% year-on-year to EUR 46.1 billion. Following this outstanding set of numbers, we are increasing our 2026 guidance for Turner to an operational profit before tax to $1.4 billion-$1.46 billion versus the previous from $1.3 billion-$1.35 billion, an increase of around 35%-40% versus the previous 25%-30% indication. Next, we have CIMIC, which delivered steady performance with solid margins and improving cash flow metrics. Furthermore, on July 1st, the company acquired the remaining 40% interest in Thiess, returning the global mining business to full ownership. First half sales of EUR 5.2 billion were up slightly year-on-year on a comparable basis, adjusting for the sale of 50% of UGL Transport.
Revenue saw rising contributions from strategic growth markets, particularly data centers, which were around 40% higher, offsetting the winding down of large transport infra projects. Operational PBT of EUR 236 million rose 8% year-on-year on a comparable basis. A net operating cash flow pre-factoring shows an EUR 82 million improvement year-on-year. Net debt was reduced by EUR 1.2 billion, including a capital increase for the Thiess minority buyout and the divestments of the UGL Transport stake and a DC project. New orders for the period came in at EUR 6.4 billion, with a book-to-bill ratio of 1.5x . CIMIC ended the period with a solid order backlog of EUR 23.7 billion, up 12% year-on-year comparable. Our CIMIC 2026 expectations are unchanged, at an operational profit before tax of 2026 in the range of approximately EUR 780 million-EUR 830 million, a 4%-10% comparable rise.
Next, our Engineering & Construction business, which is in a very solid growth path. Although sales of EUR 800 million were stable year-on-year, reflecting short-term project timing effects in our European business, the segment delivered very strong growth in operational PBT of 37% year-on-year to EUR 55 million. Engineering & Construction also saw a strong last 12 months cash conversion, with net operating cash flow of EUR 140 million supporting further investment in our Edge data center network and PPPs. New orders of EUR 4.0 billion were driven by the European business, up 78% year-on-year. Overall, new work secure represent 1.5x work done last 12 months, with a year-on-year variation reflecting the exceptional level of project wins in early 2025. The total order backlog increased to EUR 14.9 billion, up 17% year-on-year, highlighting the solid growth momentum of the business.
For 2026, we continue to see strong performance at our engineering construction segment, with operational profit before tax guidance of between EUR 125 million and EUR 140 million, which implies an increase of up to 42% year-over-year. We are very confident that the business will deliver further strong growth in 2027 and beyond. Let's take a brief look now at Abertis, which achieved a solid operational performance. Average daily traffic increased by 1% year-over-year, while tariffs were 3% higher, leading to sales growth of 5% and an EBITDA rise of 6%. Net profit pre-PPA amounted to EUR 369 million, and Abertis' operational and nominal restore contribution for our 20% stake was EUR 35 million, similar to last year. During the period, Abertis announced the acquisition of the remaining 48.8% it did not already own in French motorway A63, which has a 25-year remaining concession life.
Abertis extended its largest concession in Mexico, RCO, the country's main industrial corridor, until 2067. These moves further enhance Abertis' long-term business profile and cash flow replacement strategy and increase its average portfolio duration from 12- 15 years. Allow me to briefly update you on the group's strategic delivery and long-term growth opportunities. Our strategic agenda remains focused on further strengthening HOCHTIEF's positioning as an end-to-end infrastructure solutions provider, delivering sustained high-quality growth while reinforcing the resilience and long-term value of the group. During the last four years, we have advanced to become a leader in rapidly expanding strategic growth verticals, including AI, digital and tech sector, energy including nuclear, critical minerals, and defense, where infrastructure investments continue to accelerate.
This momentum builds on our long-established, locally embedded presence in core infrastructure markets in North America, Australia, and Europe, which remains the foundation for our competitive strength and our ability to scale into these next-generation markets as a life cycle partner. In data centers, notwithstanding the exponential growth in North American market over the last three years, we expect further significant and sustained growth. Our ability to embrace this growth is driven by integrated operating model that combines scale, innovation, supply chain, and increases self-performed capabilities, as well as industrialized construction. Together, these competitive advantages are allowing us to expand capacity while maintaining execution certainty. Working alongside our clients, we are at the forefront of advancing increasingly standardized design and delivery models that enable greater use of modularization and prefabrication.
These approaches increase execution capacity and productivity, allowing the group to deliver significantly more work with greater speed, consistency, and quality, while continuing to meet growing demand. During the first half of 2026, we secured new orders for data centers worth around EUR 13.3 billion, up around 50% year-over-year, including a project as one of the contractors for a $10 billion, 1 GW data center campus in Indiana, U.S.A. As AI advances and demand for high-performance computing continues to grow, gigawatt scale campuses will play a critical role in supporting next-generation digital infrastructure. Earlier this month, Turner announced it will help Meta deliver expanded $50 billion investment at its Louisiana project.
Originally announced as a campus supporting more than 2 GW of IT capacity, the upside spread will now deliver 5 GW across nearly 10 million sq ft, making it one of the world's largest data center campuses, with Turner expanding scope. In July, we also secured a landmark 1 GW AI-optimized data center in Canada, which will see Turner working with Plutarco Ramos on a CAD 13 billion project. Our strategy to expand the group's data center presence globally by leveraging our in-house expertise and geographical footprint continues advancing. During the period, we won a contract to build a 36 M W facility in Berlin, valued at several hundred million euros, to be delivered by an integrated team of HOCHTIEF Infrastructure and Turner through its European subsidiary, Dornan.
We also secured major data center contracts in Asia with Leighton Asia awarded a contract to deliver fit-out works at a data center campus in Thailand. Furthermore, HOCHTIEF's plan to develop a European network of sustainable edge data center is steadily moving forward with the construction of a facility in Herne underway, making the fourth edge data center site to be developed in Germany. Just last Friday in the U.K., Blackpool Council announced its intention to award HOCHTIEF another highly sustainable 6 MW data center project within the Edge category. The contract covers the data center's full life cycle from design, construction, to operations and financing, with HOCHTIEF intending to invest equity and deploy its UniCloud platform to offer the U.K. high performance, security, and local data sovereignty.
Overall, we're increasing our participation across the full AI stack, including significant new orders relating to semiconductor sectors such as a major quantum research-related project in Princeton, USA, an important manufacturing facility in Europe, the delivery of infrastructure to support the semiconductor industry in Dresden, and a program management role for a major facility in India. Another strategic growth market for HOCHTIEF is energy, including nuclear. Rising investment in energy security and the global transition to low carbon systems underpin sustained demand for advanced technology infrastructure. Global nuclear investment, for example, is expected to approach a cumulative EUR 600 billion by 2040. We're delivering essential infrastructure for major renewable energy projects that support economic growth, strengthen energy systems, and create sustainable outcomes.
In early July, for example, senior group companies were selected to build a 179 MW wind farm in Western Australia for Neoen, a project that supports the state's energy transition in growing demand for reliable, lower emissions power. This is UGL's 26th clean energy development and expands the group's renewable energy capability into wind generation. At the beginning of 2026, an important strategic milestone was achieved when HOCHTIEF was selected as part of Amentum's global project delivery team for the Rolls-Royce small modular reactors nuclear program, with strategic leadership in construction management. Our role builds on decades of experience in nuclear and complex infrastructure, combined with our capability in modular assembly and delivering large, technically demanding projects with certainty. We welcome the recent selection of Rolls-Royce to deliver three SMRs in Sweden, marking a significant step forward in Europe's energy transition.
As part of the global delivery team, HOCHTIEF will continue supporting the company's SMR deployment across the U.K. and Europe. The group is also capitalizing on the accelerating global requirements for critical minerals driven by clean energy technologies, digital infrastructure, and defense modernization. There is an estimated EUR 500 billion to EUR 600 billion in mining capital requirements to be met globally by 2040. HOCHTIEF, through the combined capabilities of Sedgman and Thiess, has built a global position in minerals processing and sustainable mining services, with a track record which spans over 630 engineering projects and studies. These include key commodities such as lithium, copper, rare earth, nickel, vanadium, uranium, and zinc. Central to our strategy in critical metals and minerals is HOCHTIEF's 15% cornerstone investment in Vulcan Energy, which earlier this year announced it had obtained the official permit for the commercial extraction of lithium at its Lionheart project.
HOCHTIEF has secured an end-to-end role in developing its lithium production and processing infrastructure. During the period, group company Sedgman, which is leading the development of our global critical minerals platform, expanded its North American footprint with the award of a feasibility study for North America's largest producer of hard rock lithium concentrate in Quebec. As well as a contract to deliver the front-end engineering design for E3 Lithium's Clearwater project in Alberta, enabling the efficient and sustainable recovery of battery-grade lithium from brine resources. In addition, the group enhanced its presence in the Asia Pacific region with the award of AUD 400 million worth of contracts at the world's largest integrated zinc producer in India. Furthermore, Thiess secured three contracts across gold and critical minerals projects in Australia, reflecting the company's strength in technically complex underground environments.
Public investment in defense infrastructure is set to substantially increase, we expect an addressable market opportunity worth EUR 80 billion annually by 2030. HOCHTIEF, which at the end of the first half of 2026 had a defense order book of over EUR 2.2 billion, is leveraging its strong engineering capabilities, proven project execution record, and long-standing presence across key defense markets. During the period, we awarded a major contract for the German Armed Forces billion-euro-size university campus in Hamburg. This collaborative 10-year project has an investment volume of several hundred million euros, combining our end-to-end expertise in defense and education. In April, the group also won a joint venture project to modernize a military airport in the Czech Republic used by the country's Air Force and NATO allies.
Earlier this year, a Flatiron Dragados led joint venture secured a water storage facility collaborative contract for the U.S. Army Corps of Engineers worth almost $700 million. For biopharma, health, education, social infrastructure competencies are key for the group's ability to fully harness global growth opportunities. HOCHTIEF's leading position in the U.S.A. was recently highlighted with Turner named the nation's top healthcare construction manager for the 25th time. During the first half, Turner JV was selected to provide construction services for a state-of-the-art cancer care facility to be built in Manhattan. The company was also chosen to be part of the design-build team for a EUR 590 million utility plant at the University of Kentucky. It's also noteworthy that several Turner projects have been in the global limelight in recent weeks, with five stadiums built or modernized by Turner hosting FIFA World Cup matches.
The SoFi Stadium, for example, served as a flagship venue hosting group states and knockout round matches and will welcome the world again as a venue for the 2028 Olympic Games. The group has been a global leader in transport and sustainable infrastructure for several decades. In the first half, for example, Flatiron Dragados was, for the first time, ranked number one in the North American transportation sector by ENR. Recently, a joint venture led by the company was selected as the preferred proponent for the multi-billion U.S. dollars expansion of the container capacity at the Port of Vancouver using a collaborative delivery model. In Q2, a HOCHTIEF consortium secured the next phase of the Prague Metro Line V for a total value of EUR 1.23 billion.
In March, we awarded a contract to design and expand a 26 km section of the East Link railway line near Stockholm, worth up to EUR 900 million. Here in Germany, the EUR 500 billion infrastructure fund is seeing its first full year deployment. We're very well positioned to benefit due to the scalability of its business model and its core expertise in bridges, tunnels, rail, and transmission lines, with the group's German order book doubling over the last four years. The group's leadership in PPPs was also illustrated a few months ago when a HOCHTIEF consortium was awarded a EUR 200 million PPP project for the University of Southampton to build a 1,500-student accommodation unit facility in the U.K. and operate the mission-free facility over a 50-year period. As you are aware, capital allocation is a priority for management.
We regularly assess strategic M&A opportunities with our capital deployment focused on our growth markets. In July, we announced an AUD 1.2 billion acquisition of the remaining 40% interest in Thiess, returning the global mining services to full ownership. Thiess is a high-performing business with long-term contracts, strong cash flow, and a clear strategy aligned to the evolving needs of the resources sector. It is continuing to grow and diversify its commodities and services to support the energy transition. It's also pioneering new ways of working through advanced equipment and technology to enhance performance. Full ownership of Thiess supports our long-term growth strategy in critical minerals, providing our clients with a strong balance sheet and global capability. Also in July, we paid out around EUR 500 million in dividends, a year-on-year increase of 26%, underlying our priority to remunerate HOCHTIEF shareholders.
Let me conclude by underlining how HOCHTIEF is embracing the future by developing our leadership in strategic growth markets. Our strong and expanding presence in these interconnected sectors is a key competitive advantage and underpins our long-term growth strategy. Combined with our strong balance sheet and backed by disciplined cash management, we have created the necessary conditions to pursue further growth opportunities and deliver value for all our stakeholders.
Thank you. I'm ready now for your questions.
We're ready to take questions now, Operator. Thank you.
We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their telephone. You will hear a tune to confirm that you have entered in the queue. If you wish to remove yourself from the question queue, you may press star two. Questioner on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star one at this time. The first question comes from the line of Graham Hunt from Jefferies. Please go ahead, sir.
Thanks very much. I've just got two questions, if that's okay. First question, just on a couple of these large data center projects that you've mentioned that you're involved in North America, the 5 GW expansion by Meta in Louisiana and the CAD 13 billion in Alberta. Can you just help us understand where you are with these projects in terms of the order book? How much is in or how much isn't in, and how we should think about the phasing of that? How long will it take to see all of that contract revenue?
The second question, you've mentioned this point about increasing self-perform capabilities, industrialized performance, and use of modularization a couple of times now. I think you've talked about adding bolt-on capabilities there, but we haven't seen anything yet. Is that something that's still in the pipeline? How important is that to you, Juan, in terms of delivering on the growth opportunities that you see ahead? Do you need to invest capital to strengthen up the business in order to deliver the growth that you're seeing? Thank you.
Thank you, Graham. Let me start with the two data centers. Let me make a brief introduction so we understand the different numbers, right? Right now, when you look at Turner working hand, the only projects included in the EUR 22 billion working hand from Turner are those that we have finalized the design, they are ordered, they are secured, they are signed, and we are working on the construction, right? That's first EUR 22 billion. As we always say, there's always bucket of projects that are secured, are given to us. We're working on the design, but until we do not sign the construction contract, they are not in our backlog or is marginal, because it's only the engineer, right? It's marginal. Right now, that bucket for Turner is around EUR 20 billion. We're talking about EUR 42 billion projects in those two buckets.
There's a third bucket of projects that we haven't even started the engineering, and they are not in our working hand, okay? That's a third bucket. Let's jump into the two examples you mentioned. The first one is Louisiana, right? The ramp-up from the 2 GW to the 5 GW . That additional expansion, it's around EUR 50 billion, but out of which we believe that the data center themselves, removing GPUs, et cetera. The addressable market is around EUR 27 billion, right? We know that from the three construction companies that we used to be know, it's up to two, one being Turner, right? We don't have any information yet of how those EUR 27 billion approx will be distributed between us and the other party, right? We don't know. We know there's a EUR 27 billion addressable market, and we are two.
That figure is nowhere in the first bucket of EUR 22 billion or the second bucket in EUR 20 billion. That would be part of a third bucket, right? Now let's get into the Canadian project. There's CAD 11 billion in the Canadian project. EUR 5 billion approx are in the second bucket in that EUR 20 billion that I mentioned before, not in the first one, the second that we already worked in the design but not in the construction, and EUR 6 billion are out of those two buckets, right? Sorry, I know it's a little bit confusing, but I hope it clarifies.
Now, let's talk about the self-performance. We believe that self-performance drives two things. The first one is margin, the second one is self-performance capabilities and obviously resilience, right? At the end of the day, it's important for us to be little by little, although we are going very fast, bringing all the critical capabilities within the projects inside the organization, right? Over the last four years, we have verticalized or insourced all engineering capabilities. We have a very strong strategy around modularization and prefabrication of data centers, but in general, everything that is high-tech buildings, whether microfacilities, biopharma, et cetera.
Also self-performance when it comes, whether on-site or in our workshops for the modular, all electricians and mechanicals and all the critical aspects on those. For all the reasons that I mentioned before, increases margin on one side, and second thing, it makes us more resilient. Also allow us to be much more flexible in the future, between all the different sectors, whether it's biopharma, we're talking about semiconductors, or industry in general, data centers, et cetera. That's the reason why it's so important for us.
Got it. Thank you very much. That's very helpful.
The next question comes from the line of Marcin Wojtal from Bank of America. Please go ahead.
Yes. Apologies. Thank you for taking my questions. Firstly is on Turner and the profitability of Turner. I believe at the end of last year at the ACS Capital Markets Day, there was a guidance provided of, I believe, 3.9% EBITDA margin. I already see that you are basically at 4.0% in H1 of this year. The question is really, is there still more to be gained at Turner? When you think about the mix of projects, when you think about revenue growth, what is really the limit? Turner, a few years ago, used to be at a much lower level. You have achieved 4%, but can you go any further?
My question number two, just coming back on the guidance upgrade, if you allow me. Is it just a mark to market really of 2026, performing better than expected? It also, in a way, reflects your improved confidence in the outlook for 2027 and beyond? It would be very interesting to understand.
My last question, if you allow me, that will be on Thiess. You now have full ownership of this subsidiary. Does it actually change anything in terms of governance of Thiess, in terms of operations? Could there be any synergies with the rest of CIMIC? Could there be any cost savings? Anything over and beyond just the buyout of minorities? Thank you.
Thank you, Marcin. Let me start with the first one. You're right. We have focused significantly on improving the margin of Turner over the years. If you go back, you saw from the less than 2.5% in 2022 to 2.6%, 2023, 3%, 2024, 3.6%, 2025. Right now, the first half, we are around 4%, and that will continue to grow. In fact, all what we're doing in modularization, in self- performance, source through the supply chain, xPL, everything is to make sure that we continue adding value to our projects and therefore increasing margins. Yes, we should see that growing. How much? It's something that we're looking at, we'll communicate once we have all the numbers, the projections, et cetera. Yes, we'll continue growing up that margin. We're quite confident on that. Very confident.
Second, guidance. You mentioned, is it mark to market from the year or reflects confidence, improved confidence in 2027? Both. It does both things. We are very comfortable with the new orders. We are very comfortable with the backlog. We are very comfortable, and not only with Turner, that of course, continues going very well, and the visibility that we have is very good. We are surprised how confident and how much visibility we have in data center market versus sometimes what the market is seeing. That's something that surprises us, when people speak about CapEx being reduced, et cetera. In fact, when you go not just with how much we are growing our data center, but also when we look at the CapEx that it's being approved by all our clients, that continues growing and increasing. The numbers continue being there.
We do not see a slowdown in any way of any of the hyperscalers. Alphabet, the 2026 CapEx, it's going to be around EUR 185 billion-EUR 205 billion versus EUR 180 billion-EUR 190 billion. That is more than doubling the EUR 91 billion from 2025. Meta, 2026 CapEx, EUR 125 billion-EUR 145 billion from the EUR 72 billion in 2025. Amazon, EUR 200 billion in CapEx in 2026, EUR 130 billion-EUR 200 billion in 2025. Microsoft, tracking more than EUR 190 billion, which is 61% year-on-year. We see all of that, we see our orders, we see the skepticism in the market, we just get surprised. Yes, we're confident on 2027 and 2026.
Third, Thiess. Yes, it does change. It did change, I must say, when we acquired the first 10%. That's why we did what we did, and that was a significant change. Since then, we've been introducing changes in Thiess, and I'm sure you're seeing already, or you will be seeing performance at CIMIC since a lot of those changes and cash flows improving, and you will continue seeing that through 2026. Right now, more importantly, we are being able, in addition to a different governance, we're being able to get synergies on refinancings, for example.
Putting aside 2026, because I believe that for 2026, it's a very slightly positive marginal accretion, maybe around EUR 15 million post-tax for this year because it's net of many things and it's just second half of the year. If you look at a full year like 2027, let's say that you remove the dividend, and I'm going to talk about euros, not Aussie dollars, but just the elimination of the leakages or the annual dividend for the party, we gain EUR 95 million. We gain another EUR 15 million for refinancing benefits, which I just mentioned. There's around EUR 30 million of financing cost post-tax linked to the purchase price payment.
Just by doing what we've done, we get like EUR 80 million earning accretion annually from 2027 onwards. That'll give you a sense that there are synergies in that sense. Financial synergies. The first one you're able to see is the financing. When it comes to governance, we are, and we've been increasing productivities again, moving Thiess into new metals, geographically spread. There's some things that we've been working since we got 10% additional is taking Thiess, and you will be seeing that translating into CIMIC results moving on.
In fact, Thiess revenue up was EUR 103 million. From the EUR 2.93 billion last year to EUR 3.06 billion. There is strong performance in Mount Pleasant, Lake Vermont, Eva Copper that I can think of right now. This is offsetting some of the demobilization from Indonesia. Even EBITDA up 46.4%, from EUR 595 million to EUR 642 million. EBITDA margin at 21% versus 20%. We are seeing the consequences of some of our actions, but we will be continuing seeing more strong in the future.
The next question comes from the line of Dario Maglione from BNP Paribas. Please go ahead.
Hi, Juan. Hi to the team. I have three questions. One on Turner. In H1, if we're looking at USD, what was the revenue for data centers and the order intake again for data centers? More broadly about data centers, the market, of course, is worried about bottlenecks to deliver the big pipeline of data center projects. For instance, connection to the grid or just not in my backyard, so local opposition against data centers. What are you seeing in this respect? Do you see these bottlenecks getting worse, or how is Turner managing the situation?
The third and last question is around the German business. We read in July that there were some changes to the administrative way to deploy the German infrastructure fund and simplify the process for some of these large projects. What are your thoughts? When would you expect the market to pick up in Germany even more? Thank you.
Starting with Turner. The first half 2026 order book, around EUR 22 billion, which is an increase of 74% from last year. New orders of EUR 13.5 billion, which is a 54% increase versus the first half. If you look at the last 12 months, that represents EUR 23 billion of new orders, which is an increase of 100%. That on the figures. Bottlenecks. There's bottlenecks in the market, and there's potential bottlenecks in the market. I will explain, and then there's a question about if Turner has bottlenecks. Turner has, and these projects can act in different ways. From doing almost everything, engineering, EPCM manager, but engineering, but construction, civil performance or modularization, the full scope, or just being an EPCM contractor. They have different functions, different abilities. Depending on what you do, obviously you have more capacity or less capacity.
As a general EPCM constructor, I would say that the capacity is unlimited. Because of systems, because of people, because of management. At the end of the day, the constraint is more on the market. In turn, if we act in modularization and with civil performance, yes, our capability is more limited, but we continue growing very fast. That's a good thing about our group. We have the ability to grow very fast because we do have huge ability because of the brand reputation, because of our scale, because of our diversification, because we're able to move people within states, between states, between countries, because we have strong programs of training in different areas in South America, that we can move from regions to regions and Asia Pacific. That affects not just data center, but everything. That's our biggest advantage.
I always say that. We can speak about a lot of advantages and capabilities and strengths of this group, but the first one is our geographical diversity and presence. Which I do not see any competitor getting close to any of that. From the U.S. to Canada, South America, all Europe, all Asia Pacific, Australia, and all that. That's I'm not concerned about Turner, but of course, depending on what aspects, right? Not the same doing the full motorization and self-performing everything than doing construction management. Completely different activities.
Let's talk about the market, because in the market, there is, I would say, two things that everyone is arguing right now or discussing. The first one is, let's talk about the states, right? What has happened in Europe with the data center moratorium, and there was an executive order signed on July the 14th, pausing all the large DC facility permits. What is going on? How that affects, right? Let's talk about that. The first thing is that 70% or over 70% of the U.S. data center capacity is located in just 1% of the U.S. counties. Not states, counties. 1% in 31 counties in the U.S., right? That's basically Louisiana, Texas, Iowa, Ohio, Carolina, Georgia, Missouri, Virginia, Nebraska. That's where Turner has its biggest presence, and that's where we are getting most of our work, right?
Politics are not crazy. We've seen that. If you are not exposed to data centers because you don't have data centers, and you believe that people are complaining about data centers, it's very easy to put a moratorium because it doesn't affect you, right? At the end of the day, those data centers or the states really pushing forward data centers who are not seeing those moratorium or not seeing some of those discussions extended. Different thing is for a particular project. That's why when we talk about our hyperscalers, as part of that planning process, as part of the third bucket that I said before. I remind everyone, the first one, our backlog price under construction. The second one, price awarded. We are moving forward with these ones, start with engineering.
The third one, which is let's talk, right? Verbally, we know that it's going to happen or it's been announced. As part of that, we are always planning with three, four at the same time because of location, right? As part of that location is about energy, water, politics, everything, right? Labor, everything is taken into account. It's not about if the data center is going to happen or not. It's about when, how, where. All those are being part of the discussions with hyperscalers, right? Data center doesn't get canceled. It moves. This is the beauty of everything. If we were a contractor just focused in one state, yes. Whether it happens in that state or not, it's a big deal for us. The fact that it can happen anywhere because the capacity is needed, that's what makes us strong.
They know that if we work on six different ones, it doesn't matter where it's going to be, we will be able to deliver. That's important. That's why we participate in so many planning stages way in advance of the final award. We do have that flexibility, and we can analyze different states at the same time or different locations globally, et cetera, et cetera, because the capacity is needed. It's a question about where is the right location, and of course, politics is part of that. Now, let's talk about German infrastructure. Germany is probably going to be one of our fastest and highest growth areas within the next months and years, right? We're quite comfortable with Germany. I think we are doing our homework in Germany. We're increasing our presence in Germany.
Certainly there's, of course, the EUR 500 billion German 12-year infrastructure fund that we have spoken about. The first year of deployment was this year, and we've seen investments for EUR 129 billion. Not that revenue is happening right now, but investment is being awarded this year for the next years versus the EUR 75 billion last year. There's a lot of acceleration of activity. There's areas about railway. If we would focus on the traditional markets like railway, bridges, transmission lines, all of that is going to boom in Germany. We are seeing it, right? Energy. That's going to boom. Also, if we look at the new high-growth areas like data centers, et cetera, we are also seeing big growth in that area. Defense as well, et cetera. That's why we continue growing our backlog. We continue seeing an increase in our profit.
Revenues are steady, that's because of accounting, because we are accounting the JVs as corporations. If we have more than 50%, we consolidate revenues. If we do not, it goes through equity consolidation. That's why revenues are not, in the case of Germany, representative of the market. If you look at the 2026 profit guidance in new infrastructure, that includes the German business, the growth is 27.2%. If we were, and I prefer not to do it, to take just Germany, that will be much higher, right? We are not giving that. When it comes to guidance, we stick to what is mandatory. Germany is way above that. We see that Germany is growing and will continue growing. We see that as one of our main focus and highest growth area.
Okay. Thanks, Juan.
The next question comes from the line of Luis Prieto from Kepler Cheuvreux. Please go ahead.
Good afternoon. Thanks for taking my questions. I have a couple of them, if I may. Juan, you just commented on the de-rating of Turner's U.S. comps. I get the impression that the emerging debate is becoming more and more about the really long-term prospects for data center construction. I'm referring to more than 2029, 2030, in the context of markedly demanding valuations. What is your view on the situation? Are the long-term figures provided at the CMD last year still valid? I'm referring to, I think it was 208 GW of global capacity by 2032. The second question is that you have also commented on modularization and prefabrication. If the data center market ends up having less potential than initially envisaged, couldn't these fixed costs potentially erode your performance? Thank you.
Okay. Starting with the first one. It's a good question. It's true that what we're seeing is that there's some co-lo. A lot of the platforms doing co-lo or colocation of the cloud services, some of them are sagging. Right? In our cases, they are not sagging, but they are clashing with the level of debt because they have played so much that that starts to become a concern. I'm not sure if the percentage of exposure to some of those Tier 2 or co-lo platforms that our peers have. I don't know. What I can say is that from our perspective, most of our work is hyperscalers or platforms backed by hyperscalers. Right? Because we make sure that we want to secure the work with hyperscalers.
I do not know if there's any thing or not, because as I said before, we look at our numbers and the talks, talking about the market, et cetera. We're not seeing any decrease in the activity around data centers. Now, 2030. It's an excellent question, because last year in November, we spoke about EUR 20 billion revenues by 2030, and now we are doing EUR 17 billion -EUR 19 billion at Turner, EUR 20 billion at the group. We have already achieved that in 2026 versus 2030. Last time we updated, which was three months ago, we came up with a EUR 30 billion number by 2030. We haven't updated. Right? We need to do some work on that number. There's a need to continue updating numbers with what we are saying.
Then modularization. We want to make sure that our modularization and self-perform not only work for data centers, work for anything that is industrialized, high-tech buildings. Right? Biopharma, biotechnology, semiconductor fabs, manufacturing, life science. We are working, we are being very specific about that. Right? We will be able, in the capital markets at the end of the year, we are using most of our workshops to lead organically, the ones we have, to make sure that we transform them into a lot of these. Right? We are not crazy about the numbers we are doing in a way that is under control. We are quite comfortable with the plan. What we want to do inorganically is to acquire additional engineering capabilities, additional things that work not just for data centers, but for all the sectors, everything that is high-tech.
In other words, we are comfortable with the strategy.
Excellent. Thank you very much.
The next question comes from the line of José Manuel Arroyas from Santander. Please go ahead.
Thank you. I have two questions. The first is on Turner and the business model. I wanted to ask you, Juan, what happens when you identify price pressure in the supply chain? I wanted to query you about the relationship that Turner has with its end clients and subcontractors. What is the exact percentage of the contracts that have cost-plus clauses, and to what extent can Turner pass on the higher price of components to the clients?
My second question is again on Germany. I wanted to ask you if you could give us a value for the current share of orders that the E&C business in Germany can confidently, unequivocally attribute to the German stimulus plans to date
Starting with Turner. Thank you, José Manuel, for the question. Starting with Turner. At the end of the day, I come back to my previous discussion around how we plan for these projects, right? When we plan for this project and we help our clients, we are working on three, four potential projects at the same time, right? We look at everything from energy to permitting, environmental, labor, access, political issues that could affect in any way the construction or people against it, and also cost. Right? When we look at the cost, we analyze everything open book, putting everything on the table, different ways to do it, modularization or modularization management, labor on site, off site. Because at the end of the day, everything is about, for them, time to market and quality. Time to market and quality, right?
Of course, there's a cost factor, don't get me wrong, but time to market and quality is very important. When we work with them and we finally choose or they choose one of the data centers, everything is built in, right? All the inflation and the cost and labor, and even if we are bringing 80% of the people from out of state, which is super expensive, all of that is built in and it's transferred to the client. The client sees it's open book, and makes the decision based on that. All our contracts are done in that way at Turner. Germany. Germany, if you are asking specifically about what percentage, because when you look at the backlog, in Germany, of that backlog, how much is addressed to the stimulus plan? I would say that at this stage, not much.
We know that it's coming. It's coming very slow because all of that has been given to Deutsche Bahn, to Autobahn, to defense, so they can load into their processes, and they are talking about declines. There could be, when I'm saying not that much, let me see if I have some of those figures. Of the EUR 4.3 billion that I think we have backlog first half of 2026, I would say that EUR 1 billion, around EUR 1 billion could be allocated that we know, right? That we know specific about the stimulus plan. We believe that is going to grow significantly.
Thank you.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to the company for any closing remarks.
Just to say thank you once again for your time today, for your support. Looking forward to any follow-up questions that you might have. Feel free to contact at any time. Thank you so much.