Teixeira Duarte's Net Profit Quadruples to €42.4 Million in First Half, Masking Operational Downturn
The Portuguese construction group Teixeira Duarte announced this Friday a net profit of €42.4 million for the first semester of 2025, a figure more than four times higher than the profit recorded in the same period of the previous year. This significant increase is primarily attributed to the positive financial effects of a debt refinancing agreement concluded with banking institutions in March, which generated a one-time gain of €60 million. The company, in a statement sent to the Securities Market Commission (CMVM), clarified that the agreement allowed for an extension of debt maturities and an optimization of financing costs.
However, from an operational perspective, the group's performance showed a contraction compared to the first half of 2024. Consolidated operating revenues fell by 18.2% to €331.2 million. The decline was particularly sharp in the domestic Portuguese market, which saw a 22.6% reduction in activity, while international operations experienced a more moderate decrease of 14.8%. Among its key international markets, Angola was the only one to register positive growth. This operational slowdown led to a 65.2% drop in the operating result, which stood at €8.64 million, and a 35.7% decrease in EBITDA (earnings before interest, taxes, depreciation, and amortization).
The construction sector, which remains the core of Teixeira Duarte's business and accounts for 53.5% of its EBITDA, saw its sales and services rendered decrease by 6.2% to €195.26 million. The company's report detailed that the decline in Portugal for this segment was 16.4%. Despite this, the group emphasized a positive outlook, citing a robust order book. “The construction order portfolio stood at €1,630,328 thousand on June 30, 2025, reflecting an increase of 5.9% compared to December 31, 2024,” the official communication stated. This growth in future contracted work signals a potential recovery for the segment in the medium term.
The most significant drop in revenue occurred in the real estate division. Sales plummeted from €53.5 million in the first six months of 2024 to just €2.44 million in the same period this year. A spokesperson for the company explained that this figure is subject to volatility, as Teixeira Duarte's accounting practices only recognize revenue from real estate projects upon their completion and delivery to clients. The higher figure in 2024 was largely due to the conclusion of sales for urbanized land in Loures, a municipality near Lisbon, and a residential development in Vila Nova de Gaia, in the Porto metropolitan area.
Performance across other business areas was varied. The concessions and services division reported an 8.7% increase in sales to €47.2 million, while the hospitality sector grew by 2.7% to €20.4 million. The distribution arm also saw an 8.5% rise in sales, reaching €46.7 million. In contrast, the automotive sector faced headwinds, with sales declining by 8.9% to €8.34 million. The company attributed this to “constraints on imports resulting from difficulties in accessing foreign currency, as well as the devaluation of the Angolan Kwanza.”
The financial restructuring has had a clear impact on the company's balance sheet. Net financial debt was reduced by €77.6 million from the end of 2024, with the total standing at €565.4 million at the end of June 2025. This deleveraging effort is seen by market analysts as a positive step towards ensuring the long-term financial sustainability of the group, even as it navigates a challenging operational environment in its home market. The report from Teixeira Duarte provides a detailed snapshot of a major player in the Portuguese economy, reflecting both the pressures of the current market and strategic moves to secure future stability and growth.
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