700 million orders, boosted by Saudi Arabia and the Philippines- Corriere.it

The conclusion in mid-January of the last capital increase of 51 million euros. Financial debt reduced by around 52 million in one month and dropped to 201.4 million as at 31 January 2023. The rescheduling of debts with banks at the end of 2026. After the capital strengthening, the Trevi group looks to the future with optimism. Founded in Cesena in 1957 and listed on the Milan Stock Exchange since 1999, the group operates in 90 countries in the field of underground engineering, building special foundations for all types of infrastructure and through the Soilmec division it produces and markets machinery. Thanks to the support of the main shareholders, Cdp Equity with 21.2% and the US fund Polaris Capital Management with 20.3%, Trevi has completed the corporate restructuring. “In 2022 – says the CEO Giuseppe Caselli – we laid the foundations for the relaunch and we managed to gain the trust of the shareholders and the lending banks”.

What numbers have you reached?
«The results of 2022 are significantly improving. Revenues rose by 15% to 569.2 million, the recurring ebitda grew by 30% to 64.4 million, the ebit returned largely positive after over 5 million in the red in 2021. The loss was reduced by 70%. The trend is constantly growing».

When do you expect to review the profit?
«The guidance for 2023 indicates revenues with an increase from 3 to 6% on 2022, the ebitda is expected to continue as a percentage of revenues. With regard to profit, the 2026 plan presented to the banks envisages it for 2024, but we will try to anticipate the goal, comforted by the signs of recovery”.

What are the signs of recovery?
«The significant increase in orders acquired (+16% to 699.2 million) and in the order backlog (+29% at the end of 2022 to 587 million). But the most important data is the commercial pipeline and the quantity of requests for offers in the world. There are geographical areas experiencing a reawakening of the infrastructure business where Trevi can take advantage».

You have an important project underway in Saudi Arabia.
«It is The Line (a futuristic city spread over a strip 173 kilometers long, 250 meters wide and 500 meters high, ed), in which Trevi was the first foundation company to be involved and received the award from the client for the quality of the work performed. We are currently listing and discussing for new work. We have multi-year plans and hope to take sequential contracts. Neom is the world’s largest foundation work ever. A work worth several trillion euros, in which the Crown Prince (MBS) is investing heavily».

Besides Saudi Arabia, where do you look?
«To the entire Middle East: in Kuwait, Oman and the UAE, for example, we expect further jobs as well as in Nigeria. Then there are the Philippines, where the improvement process of the road network is underway. We are working in Australia, in Melbourne, on the great North East Link project which involves the construction of two three-lane tunnels. We have been present in the United States for many years where we have developed a solid relationship with the US Army Corps of Engineers which oversees all civil engineering infrastructure on American soil. And we want to penetrate Canada and Puerto Rico».

In Italy?
«In Italy we work mainly for the assigned main contractors. We are finalizing various agreements and we are in the project for the capsize of the Fincantieri quay in the port of Genoa. In Florence we are subcontractors for the Saipem Pizzarotti consortium in the high-speed railway for Rfi. And in Milan, in the Santa Giulia complex, we should build the foundations for the arena».

What do you think of the new procurement code?
“It’s too early to comment.”

Do you fear impact on your investments due to rising interest rates?
«Our investments, which range between 25 and 30 million a year – are all self-financed. We have updated the business plan to October-November 2022, already on the basis of the new interest rates».

In the world of construction, one of the most important problems is the increase in the cost of raw materials. Are you undergoing it?
«For Trevi concrete and steel are supplied by customers in 50% of our contracts. The time to market between the offer and the award is short, the offers are up to date and the risk is limited to a short period. For Soilmec, back from a profound industrial and managerial restructuring that has increased its efficiency and performance on the market, we recently changed the price lists to recover the increases that occurred in 2022 in 2023».

Subscribe to the newsletter of The Economy

Whatever it Takes by Federico Fubini

The challenges for the economy and markets in an unstable world

Europe Matters by Francesca Basso and Viviana Mazza

Europe, the United States and Italy that count, with innovations and important decisions, but also small important stories

One More Thing by Massimo Sideri

From the world of science and technological innovation, the news that changes our lives (more than we think)

And don’t forget the newsletters
The Economy Opinions and the Economy 6 pm