Tecnicas Reunidas (TRE) | News Based Sentiment Analysis

• On September 7, 2025, Técnicas Reunidas, through a 65/35 joint venture with Sinopec Engineering Group, secured a significant EPC contract worth over USD 3.3 billion for the Riyas NGL Fractionation Facility in Saudi Arabia, with Técnicas Reunidas’ share exceeding USD 2.15 billion. This substantial contract win demonstrates the company’s ability to secure large-scale projects in key strategic markets.
• Just days later, on September 4, 2025, Técnicas Reunidas and Orascom Construction (in a 50-50 joint venture) won another EPC contract, this time for the Qurayyah Independent Power Plant (IPP) Expansion Project in Saudi Arabia, a 3-gigawatt combined-cycle gas-fired power plant with carbon capture readiness. This win further solidifies the company’s presence in the Saudi Arabian energy sector.
• Expanding its focus on sustainable energy, Técnicas Reunidas began collaborating with Sinopec’s engineers on September 5, 2025, in the design phase for ACWA Power’s green hydrogen and ammonia megaproject in Yanbu, Saudi Arabia, projected to produce 400,000 metric tons of green hydrogen and 2.8 million tons of green ammonia annually by 2030. This collaboration highlights the company’s commitment to participating in the growing green energy market.
• Técnicas Reunidas is also involved in European innovation, partnering in "PROJECT H2SHIFT" as of September 4, 2025, providing a facility for syngas upgrading and purification to produce mobility-grade H2 from ethanol reforming. This demonstrates a diversification of its hydrogen-related activities beyond the Middle East.
• The company reported strong Q2 2025 results in September, with net sales increasing 32% year-on-year to €1.4 billion and a record quarterly EBIT of €64 million (4.5% of revenues), leading to a 0.32% share price increase. Management projects annual revenues to reach €5.6 billion, signaling confidence in continued growth.
• Investor sentiment improved significantly, with analysts identifying Técnicas Reunidas as a 'star value' on September 11, 2025, projecting EBIT to multiply 2.5x in the coming years and setting a price target of €32-34. The stock price has climbed 99% over the past year, reflecting growing investor confidence.
• An analyst from Schroders highlighted Técnicas Reunidas’ turnaround on September 8, 2025, noting it had transitioned from a 'value trap' to a top performer due to securing substantial contracts in a favorable market. This positive assessment reinforces the company’s improved prospects.
• Share price movements throughout September showed volatility, with the stock trading at €23.880 on September 11, 2025 (range €22.780-€24.320), compared to €21.520 on September 10, 2025, and €21.42 on September 5, 2025 (-2.01% change).

The Investment Story: September was a transformative month for Técnicas Reunidas, marked by securing major contracts in Saudi Arabia, expanding into green energy projects, and reporting strong financial results, all contributing to a significant boost in investor confidence.

What It Means for Investors: These developments suggest Técnicas Reunidas is well-positioned to benefit from the growing demand for energy infrastructure and sustainable energy solutions, potentially leading to increased revenue, profitability, and shareholder value. The improved analyst sentiment and stock performance indicate a more favorable investment outlook.

Looking Ahead: Investors should closely monitor the company’s progress on the secured contracts, particularly the Riyas NGL and Qurayyah IPP projects, as well as the development of the green hydrogen and ammonia megaproject. The upcoming Q3 2025 results and revenue guidance update (expected in September/October) will be crucial for assessing the company’s continued performance.

The Bottom Line: Técnicas Reunidas has demonstrated a remarkable turnaround, securing substantial contracts and positioning itself for growth in both traditional and renewable energy sectors. The company appears to be on a strong trajectory, making it an increasingly attractive investment opportunity.