Bilfinger SE improved its operating performance in 2024 with S&P Global Ratings-adjusted margin reaching 7.5% versus our expectation of 7.0%. S&P Global Ratings expects EBITDA margin to remain above 7.5% in 2025 and 2026 on the back of the company?s focus on operational excellence, yielding sound free operating cash flow (FOCF) of €200 million per year. At the same time the company remains committed to maintaining a conservative balance sheet that supports an investment-grade rating. In our base case, we expect S&P Global Ratings-adjusted funds from operations (FFO) to debt of more than 100% in 2025-2026, compared with 142% in 2024. Therefore, we have raised our long-term issuer credit rating on Bilfinger to 'BBB-' from 'BB+' and our short-term issuer
