Stracon Group Reports Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• STRACON reported FY 2025 revenue of US$748.6 M (+4% YoY) and Adjusted EBITDA of US$88.4 M (+11%), delivering a 12.0% margin.
• Net profit fell sharply to US$4.8 M (‑76%) with EPS of $0.09, driven by higher corporate overhead and non‑recurring items.
• Free cash flow surged to US$56.9 M (vs. $2.1 M in 2024) and net debt improved to US$179.8 M, lowering the Net Debt/Adj. EBITDA ratio to 2.0×.
• Backlog reached a record US$2.19 B (+22% YoY), with the Pérez Caldera BOOM contract adding US$1.15 B of new bookings.

Key Details

• Revenue & Profitability
• Revenue from contracts: $748,624 k (2025) vs. $718,166 k (2024) – +4%.
• Gross profit: $89,317 k vs. $80,637 k – +11%.

• Net profit: $4,825 k vs. $20,463 k – ‑76%; EPS $0.09 vs. $0.39.

• Non‑IFRS Measures

• Adjusted EBITDA: $88,403 k (+11% YoY).
• Adjusted EBITDA margin: 12.0% (up 0.2 pp).

• Adjusted revenue: $734,534 k (+8%).

• Cash & Debt

• Cash & restricted cash: $63,767 k (+23%).
• Total interest‑bearing liabilities unchanged at $243,517 k.
• Net debt: $179,750 k (‑6% YoY).

• Net debt/Adj. EBITDA: 2.0× (down from 2.4×).

• Operating Cash Flow

• Net cash provided by operating activities: $80,548 k (+95%).

• Free cash flow: $56,943 k (vs. $2,129 k in 2024).

• Backlog

• Ending backlog: $2,191 M (+22% YoY).
• Backlog‑to‑Revenue ratio: 2.9× (up from 2.5×).

• New contract bookings: $1,151 M, highlighted by the Pérez Caldera BOOM award.

• Segment Performance

• Engineering & Technology – Revenue $103.9 M (+29%); Adj. EBITDA $3.5 M; backlog surged to $468 M (mainly Pérez Caldera EPC).
• Infrastructure – No revenue in FY 2025; BOOM contract in EPC phase, backlog $408.9 M (19% of total). Expected to generate ~50% of consolidated EBITDA within 18‑24 months.
• Industrial Services – Revenue $512.9 M; Adj. EBITDA $71.7 M (margin 14.1%). New projects: Lomas Bayas (Glencore) and Fenix Gold in Chile; Dumas growth in Canada. Backlog down to $958 M from $1,419 M.

• Fleet Solutions – Revenue $137.1 M (flat); Adj. EBITDA $22.7 M (margin 18.5% down from 22.2%). Backlog $356.4 M; impacted by a legacy under‑performing contract being wound down.

• Geographic Mix

• Peru: 48% of revenue ($362.3 M)
• Chile: 33% ($244.3 M)
• Canada: 8% ($60.8 M)

• Mexico: 7% ($55.8 M)

• Outlook & Guidance

• Infrastructure segment targeted to contribute ~50% of EBITDA within 18‑24 months, enhancing cash flow durability.
• Pipeline of opportunities > US$17 B (including US$6.3 B in infrastructure).

• Three‑year targets: Revenue > $1.0 B; Backlog > $3.0 B; Adjusted EBITDA > $150 M; Net Debt/Adj. EBITDA ≤ 1.5×.

• Conference Call

• Date & time: Tuesday, March 31 2026 at 8:00 a.m. ET (audio webcast).

Notable Quotes

“Fiscal 2025 was a strong year for the platform… The Pérez Caldera award marks a defining milestone… Infrastructure is on track to represent approximately 50% of consolidated EBITDA within 18‑24 months.” – Steve Dixon, CEO