The AKTOR Group’s management presented the Group’s €3 billion investment plan for the period 2026–2031 and its transformation and growth strategy to analysts today during a conference call.
As emphasized by the Chairman and CEO of the AKTOR Group, Mr. Alexandros Exarchou, the Group’s growth is extremely important, and even more important is the creation of value for shareholders, expressing his conviction that the Group’s strategic plan offers certainty regarding its prospects, as it is characterized by improved profit margins and optimal use of debt financing, with the aim of achieving better financial balance and economic performance for the company.
According to the Group’s management, the €3 billion in investments is secured and does not present a funding gap, while any new debt will not burden the Group’s debt profile, as it will be serviced by the subsidiaries’ cash flows and its risk will be limited to the asset level.
As Mr. Exarchou noted, the goal of the €3 billion investment plan—which will be financed by the Group’s cash flows, the upcoming €650 million rights offering, and the €300 million bond issue currently being prepared— is for the Group to achieve earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of €600–€700 million by 2031, through the parallel business development of new sectors such as renewable energy, LNG, and PPP and concession projects.
Covering investments through cash flows and synergies
The Group’s management emphasized the importance of revenues generated from stable, contractually guaranteed cash flows, such as concession and PPP projects, renewable energy and LNG, which create a solid foundation for the venture’s success, as more than half of the investment costs are considered secured through these cash flows.
Furthermore, he highlighted the importance of the Group’s scale and internal synergies, through the Construction Sector, which generates better profit margins, higher return on capital, optimal cost management, higher project quality, and improved timelines.
Change in the EBITDA mix
According to the investment plan, the goal is to gradually double EBITDA to €400 million over the next few years and to triple it to over €600 million for the period after 2030, when the long-term LNG purchase and sale contracts via the Vertical Corridor will come into effect.
This transition will bring about a drastic change in the EBITDA mix (which is currently dominated by Construction), as the pillars of the business characterized by contracted revenues will account for two-thirds of total EBITDA, without this implying a reduction in activity in the Construction Sector, which remains at the core of the Group.
In fact, as management emphasized, since these are secured future cash flows, even in an extreme scenario where Construction were to slow down due to a reduction in the backlog and a lack of new project tenders in Greece and abroad, the Group will have sufficient resources thanks to the increased diversification of its other business segments.
Key Points of the Conference Call
- The goal is to maintain a healthy order backlog over a 5- to 7-year period and to strengthen operations in Romania, where the Group enjoys an excellent market position.
- The completion of the integration of critical digital systems will result in one of the most advanced cost control systems in the industry, contributing to cash flow generation.
- The combination of the existing portfolio with new PPP and concession projects creates conditions for the sector’s expansion through new investments in Greece and abroad.
- The acquisition of Storage Systems in Bulgaria will improve the performance of the Group’s renewable energy projects in Greece and strengthen its ability to operate vertically integrated in the retail electricity market.
- Resolving the curtailment issue in Greece will make investments in energy storage more attractive and will generate added value from the Group’s previously completed acquisitions of renewable energy projects.
- Efforts will be made to expand LNG operations to other countries along the Vertical Corridor, such as North Macedonia, Moldova, and the Western Balkans.
- The Group is evaluating the option of chartering its LNG transport fleet and, at the same time, is considering leasing LNG carriers, which will be used as fuel storage facilities and as a “safety net” to ensure that LNG transport is not affected by adverse weather conditions in the Atlantic.
