Tear Sheet: Webuild S.p.A.

As of Dec. 31, 2022, the backlog was €53 billion. This is an 18% increase versus 2022, and almost covers the group's target revenues and EBITDA in 2023-2025. In addition, Italy's National Plan for Recovery and Resilience, which aims to relaunch the economy after the pandemic, is boosting Webuild?s activity in its domestic market (44% of its backlog and 31% of its revenues in 2022, up from 37% and 10%, respectively, in 2018). As such, we anticipate revenue growth will average 10% in 2023-2024, and reported EBITDA margins will stand at roughly 8%, significantly outperforming GDP growth. Webuild's sustainable FOCF generation capacity is a key rating driver. However, the company does not have a track record of positive FOCF. From

...June 29, 2023 We anticipate a progressive increase in EBITDA in 2023-2024 reflecting Webuild's solid order backlog that covers most of its target revenue. As of Dec. 31, 2022, the backlog was 53 billion. This is an 18% increase versus 2022, and almost covers the group's target revenues and EBITDA in 2023-2025. In addition, Italy's National Plan for Recovery and Resilience, which aims to relaunch the economy after the pandemic, is boosting Webuild's activity in its domestic market (44% of its backlog and 31% of its revenues in 2022, up from 37% and 10%, respectively, in 2018). As such, we anticipate revenue growth will average 10% in 2023-2024, and reported EBITDA margins will stand at roughly 8%, significantly outperforming GDP growth. Free operating cash flow (FOCF) generation should improve in 2023-2024, reflecting new advance payments and enhanced receivable collections. Webuild's sustainable FOCF generation capacity is a key rating driver. However, the company does not have a track...

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