J And P Avax R Company Research (0DO2)

AVAX’s FY24 results demonstrated new levels of profitability, primarily driven by strong EBITDA margin improvements within its construction segment. Both group revenue and adjusted EBITDA were in line with our estimates at €651.5m and €105.3m, respectively. The significant increase in revenue (43.6% y-o-y) and adjusted EBITDA (73% y-o-y) was mainly driven by the accelerated implementation of new projects, increased construction activity as well as newer projects yielding greater profitability. As a result, the group’s EBITDA margin increased to 16.2% (from 13.4% in FY23). Management stated that it expects this higher level of profitability to be sustainable due to newer projects offering superior margins. Our forecasts are under review.