Bilfinger Stock: Analysts Raise Targets After Strong Results

Bilfinger's shares have received significant upgrades from major financial institutions following impressive 2024 performance figures. Both Deutsche Bank Research and UBS have increased their price targets from €59 to €70 while maintaining "Buy" ratings. The Mannheim-based industrial services provider reported a 12 percent revenue increase to approximately €5 billion, while its operating profit (EBITA) surged by 39 percent to €264 million, improving the margin from 4.3 to 5.2 percent. These results substantially exceeded market expectations, particularly highlighting above-average profitability and strong liquidity development. The company's share price recently crossed the €60 threshold for the first time in ten years, defying an otherwise weak market environment. Shareholders will benefit from a dividend increase to €2.40 per share, up from €1.80 the previous year, despite a slight one percent decrease in net profit to €180 million due to a tax credit in the prior year.

Optimistic Growth Outlook

For 2025, Bilfinger projects continued expansion with revenue targets between €5.1 and €5.7 billion and an improved EBITA margin of 5.2 to 5.8 percent. The company remains confident about achieving its mid-term objectives of 6 to 7 percent margins and annual revenue growth of 4 to 5 percent. Management acknowledges operating in volatile markets with diverse regional challenges but sees potential advantages from increased investment activity in the United States following recent political developments. The company plans to present new medium-term targets at a capital markets day in early December.