Orascom Construction - Q1 2026 Earnings Analysis

Performance Highlights

Orascom Construction posted Q1 2026 revenue of USD 1,468.4 million, a 73.2% year-on-year increase, with EBITDA doubling to USD 108.3 million and net profit attributable to shareholders rising 112.7% to USD 53.4 million. EBITDA margin expanded 100 basis points to 7.4%, while net profit margin improved to 3.6% from 3.0% a year earlier, reflecting broad-based profitability gains across both regions.

The U.S. segment was the single most important operating driver, with revenue growing 120.0% to USD 723.5 million and EBITDA surging 343.7% to USD 31.5 million as U.S. margin expanded to 4.4% from 2.2%. MEA also contributed meaningfully, with revenue up 43.6% to USD 744.9 million and MEA EBITDA margin improving to 10.3%, supported by progress across transportation, power, and water projects in Egypt, UAE, and Saudi Arabia.

Management Outlook and Forward Catalysts

Management is targeting financial close on a new 900 MW BOO wind farm in Egypt's Gulf of Suez by early Q3 2026, which would double the Group's total wind capacity to 1.8 GW, while EPC activities continue at the 30-year Project Wave BOOT project in Abu Dhabi. The Group's pro forma backlog including 50% of BESIX stands at USD 13.1 billion, and a pending combination with OCI Global remains subject to shareholder and regulatory approval.

Bulls will focus on the record U.S. backlog of USD 2.9 billion, data center pipeline growth, and the concessions platform reaching full-year operational scale across 912.5 MW of wind capacity, while bears will monitor BESIX's 18.3% year-on-year backlog decline, EGP currency translation headwinds, and potential cost escalation in an uncertain macroeconomic environment.