Teixeira Duarte Shares Fall 9.5% on PSI Index Debut After 35% Weekly Climb
Shares of the construction firm Teixeira Duarte experienced a significant drop on Monday, falling by as much as 9.5% during the trading session that marked its return to the main PSI stock index. The decline to as low as 55.20 cents per share followed a week of intense positive momentum, where the company’s stock had surged by 35% in reaction to the news of its promotion to the benchmark index. The company’s shares are currently trading at 56.40 cents, a 7.54% decrease from the previous session's close.
This market correction comes after an extraordinary period of growth, with Teixeira Duarte's stock value increasing by over 672% in 2025 alone. The recent inclusion in the PSI index, a milestone for the company, was a primary catalyst for last week's rally. However, market analysts suggest the subsequent drop is a typical 'buy the rumor, sell the news' event. 'We will have to see if the administration continues to support the confidence that investors are giving them,' stated Pedro Lino, a director at the financial firm Optimize, commenting on the market's reaction.
The project specifications for Teixeira Duarte's future performance are robust, underpinned by significant operational achievements. The company recently secured its financial footing by restructuring its debt and reported a profit of €42.4 million for the first half of 2025. Manuel Maria Teixeira Duarte, the chairman of the board, informed ECO that these results were the outcome of 'challenging years with profound transformations' and a renewed 'focus on financial discipline, in the scrupulous selection of projects, and in the improvement of internal processes.' These measures were key to meeting Euronext's requirement of a free float of at least €100 million, paving the way for its entry into the PSI.
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The construction timeline for the company's revenue stream appears solid, with its order book reaching €1.63 billion in June, a 5.9% increase from December 2024. A cornerstone of this portfolio is the company's participation in the LusoLav consortium, which was awarded the contract for the first section of Portugal's high-speed rail project. This single project is expected to contribute approximately €440 million to Teixeira Duarte's workload. The architectural design and building features of such a large-scale infrastructure project will be a major focus for the firm.
Financing arrangements and investment partnerships have also been a source of positive news. Last week, the investment company Dualis Capital, led by businessmen Eduardo Sardo and Gaspar da Silva, increased its holding in Teixeira Duarte to over 10% of the company's capital. Analysts have welcomed this development, with Nuno Mello of XTB noting that 'the new shareholder brings greater stability to the shareholder base, reinforces the commitment to a long-term strategy, and enhances synergies in the sector, increasing the capacity to finance large projects.' This move is seen as a vote of confidence in the company's strategic direction and its ability to secure regulatory approvals and planning permissions for its ventures.
The local employment and economic impact of Teixeira Duarte's projects, particularly the high-speed rail line, are expected to be significant. The company's ability to manage pre-sales activity and market interest for its real estate developments will also be closely watched. As the company embarks on this new chapter within the PSI index, investors will be monitoring its adherence to quality standards and construction methodologies. Monitor new development opportunities at realestate-lisbon.com.