Webuild's Strategic Pivot: Absorbing NEOM Cancellations and Betting on Vertical Integration via Trevi Takeover
Strong H1 results, margin expansion, and a bold all-cash tender offer for Trevi signal a new era of disciplined, value-focused growth.
WBD.MI · Earnings Call · 2026-07-30
A Strong Half Despite Headwinds
Webuild delivered a robust first half of 2026, reporting revenues of EUR 6.7 billion, in line with the record prior year, while profitability improved meaningfully: EBITDA margin rose 120 basis points to 10.1% and EBIT margin gained 90 basis points to 7%. This performance came despite the cancellation of two major Saudi Arabia NEOM contracts, a blow that Pietro Salini said the company absorbed through its scale and diversification: “The scale and diversification of our backlog absorbed the cancellation in full, and our 2023 guidance already reflects it.” — Pietro Salini, Chief Executive Officer · 2026-07-30 Indeed, the order backlog remains robust at EUR 53.7 billion, including EUR 47 billion of construction work, and new orders reached EUR 7.7 billion in the period, a book-to-bill of 1.2x. The financial position also strengthened. Net cash stood at EUR 110 million, the eighth consecutive semester in positive territory, while gross leverage remained stable at 2.67x. The company issued a EUR 500 million bond in May, attracting over 5x demand, reflecting investor confidence. Massimo Ferrari highlighted the deliberate trade-offs behind the financial results: “Most of this is a deliberate trade-off in favor of cash by waiving interest on some receivables under settlement agreements” — Massimo Ferrari, General Manager, Corporate and Finance · 2026-07-30, a move that accelerated collections and reduced claim exposure.The Trevi Gambit: Vertical Integration and Synergies
The most striking development is the voluntary tender offer for Trevi, a global specialist in underground engineering and special foundations. The offer values Trevi at approximately EUR 295 million of equity, a 29.8% premium to the undisturbed share price, and is entirely cash. Salini framed it as the first tangible step of the upcoming 2026–2029 business plan: “We are not waiting to start. Yesterday, we announced a voluntary tender offer for Trevi, the first tangible step of that plan.” — Pietro Salini, Chief Executive Officer · 2026-07-30 The strategic logic is vertical integration. Webuild currently outsources critical geotechnical work; acquiring Trevi brings that expertise in-house. Salini noted:Synergies are estimated at EUR 80–90 million of additional EBITDA per year on a run-rate basis, with over EUR 60 million tied to existing backlog—'plug and play' as management described. Trevi's own EBITDA contribution would add EUR 150–170 million in incremental EBITDA, making the deal accretive to group margins. Funding will initially come from debt, with a capital markets bond expected later. The acquisition also dovetails with Webuild's broader business plan focus on predictable cash generation and selective growth. Australia remains a key growth market, as Salini emphasized: “We want to increase the size because... Australia is a very large continent... is investing enormously into the sustainable energy.” — Pietro Salini, Chief Executive Officer · 2026-07-30 The company also sees opportunities in the U.S., where Lane has achieved a turnaround and is securing profitable new work.By bringing Trevi's capability inside the group, we would acquire competencies in a highly specialized and a strategically important segment of the construction value chain.