With stable outlook on better financial performance

MILAN, September 5, 2023 – International ratings agency S&P Global Ratings has upgraded its rating on Webuild’s debt to “BB” from “BB-“ with a stable outlook.

The agency said in a statement the Group’s improved financial risk profile is sustainable, since it is driven by the company's strategic priority to reduce risk by increasing its presence in low-risk countries.

“Webuild's credit metrics significantly improved in 2022 and we expect further progress in 2023-2024. Most of the improvement is due to higher revenue as result of significant new business gained; revenue rose by a sizable 26% in 2022, and we anticipate a further 13% rise in 2023 and 8% in 2024, significantly outperforming GDP growth. Webuild's solid order backlog covers most of its target revenue in 2023-2025. Credit metrics improvement also reflects a progressive growth of the EBITDA margin; Webuild's margin benefits from the contribution of recently acquired contracts, as well as some contract resets that ease cost pass-through in the current context of high cost inflation.

“Webuild's improved financial risk profile is sustainable, since it is driven by the company's strategic priority to reduce risk by increasing its presence in low-risk countries and improving profitability and working capital management, also through increasing reliance on contract standards that allow easier cost pass-through, as shown with the recent Snowy 2.0 project reset.

“Webuild's business risk profile benefits from the company's strong expertise in executing complex construction projects. Its technology and engineering expertise is a supportive factor enabling the company to work on large complex projects in its main areas of focus--sustainable mobility (metros, high-speed railway lines, and roads) and hydroelectric infrastructure. The company is benefiting from the current booming market due to the focus on energy and climate transition and the post pandemic effort to boost GDP and to improve quality of life.

“We also appreciate Webuild's improved operational processes and qualified management team, which is translating into better risk management and working capital trend,” it added.