Hochtief tonneling project
Publication date: 02.04.2025
Hochtief is one of the world’s leading infrastructure companies, headquartered in Germany with a strong international presence. Their operations cover everything from construction and services to managing infrastructure assets. A major contributor to their success is their U.S. business, led by Turner — the largest construction management company in the U.S.
Turner specializes in managing building projects for private clients. Rather than doing the physical construction themselves, they oversee the entire process and subcontract the actual work. This model limits financial risk, though it shows lower profit margins on paper. But once you account for the costs they pass through to clients, Turner’s underlying profitability stacks up well against competitors.
Turner doesn’t typically handle the design phase of projects — that’s usually done by the client. So, when changes are made to the original plans, it doesn’t impact Turner’s budget. They also lock in construction and material costs ahead of time through contracts with subcontractors, and insure against unexpected cost spikes. All of this helps Turner maintain steady control over projects while staying insulated from cost overruns and budget shocks.
Hochtief had a strong 2024 — beating expectations on revenue, profit, and cash flow. They’re aiming for up to 17% profit growth in 2025, with Turner leading the way. Their project pipeline is growing fast, driven by high demand for data centers and other commercial buildings. The company has BBB- from S&P.
as of 31.12.2024 EUR bn
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|
| Assets | 24,7 | EBITDA Margin | 5 % | CFO/Debt | 0,3 |
| Revenue | 33,3 | Net debt | 1,7 | FCF | 1,7 |
| EBITDA | 1,8 | Net Debt/EBITDA | 1x | Equity | 1,2 |
| Net Profit | 0,8 | EBITDA/Interest | 4x | Debt/Equity | 6,9x |
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