Africa Contracts Drive Mota-Engil to Record Half-Year Profit

The Portuguese construction giant Mota-Engil quietly slipped in a record-breaking set of numbers this summer. Net income surged, margins fattened and the order book ballooned—yet the stock wobbled, leaving many foreign residents who dabble in Lisbon’s market wondering what comes next. Below is what you need to know, why it matters if you own local shares, manage an expat business or simply track Portugal’s global footprint.

Why expatriates should pay attention

For anyone earning in euros but investing around the globe, Mota-Engil’s latest results illuminate how Portuguese multinationals can hedge local economic swings through far-flung projects. The company now generates well over half of its revenue outside Europe, mainly in resource-rich African nations where its heavy-equipment fleet is in constant demand. That geographic spread means the firm’s fortunes often move counter-cyclically to the Iberian economy, a useful data point for expats weighing local equity exposure. It also signals job openings—from civil engineers to Portuguese-speaking contract managers—far beyond the Algarve.Adding to the relevance, state-backed lenders and EU funds frequently co-finance Mota-Engil projects, providing a barometer for how Lisbon’s public money is deployed abroad. A profitable Mota-Engil can translate into fatter dividend streams for domestic pension funds in which many foreign residents unwittingly hold stakes through private savings plans.

Headline numbers hide a geographic shake-up

Between January and June, the group booked €59 M in net profit, a 20 % leap from the same stretch last year and its best first-half showing on record. Revenue inched up to €2.75 B, but the more telling metric was the 16 % EBITDA margin, the product of disciplined cost control and richer contracts.Less visible in the gloss: Africa now contributes nearly 40 % of turnover after sales on the continent vaulted 59 %. Nigeria and Angola led the charge, helped by an 87 % spike in industrial-engineering services that positioned Mota-Engil as a contract-mining heavyweight. Meanwhile, Latin America’s top-line shrank 27 % after the much-publicised Tren Maya railway in Mexico wound down, and Europe fell 18 % as the company off-loaded its Polish unit late last year.Even with those headwinds, EBITDA climbed 13 % to €448 M, underscoring the firm’s knack for squeezing profitability from newer, higher-margin ventures.

Africa steals the spotlight

Executives have long hailed Africa as the group’s “second home,” but the latest figures crystallise that claim. Contract mining, road building and water-treatment plants from Lagos to Luanda punched well above their weight, delivering a 77 % jump in continental EBITDA. The segment’s cash generation is vital because it funds expansion in other regions without over-stretching the balance sheet.Local observers in Lisbon note that currency volatility remains the elephant in the room, especially with lengthy payment cycles tied to sovereign clients. Yet for now, dollar-denominated contracts and natural-resource royalties are cushioning the risk. The company closed June with an order backlog of €14.7 B—a pipeline that climbs to nearly €16 B once post-quarter wins are included—giving comfort that Africa’s growth spurt is more than a lucky quarter.

A tale of two slowdowns: Latin America and Europe

While bulldozers roared across sub-Saharan job sites, Latin America slipped into a planned lull. Management describes the period as a reset following the delivery of marquee jobs like Mexico’s Tren Maya. Analysts counter that political flux in Mexico, Peru and Colombia could delay replacements, so eyes are on second-half tender activity.Closer to home, the sale of Polish subsidiaries erased a chunk of European revenue, but also removed low-margin contracts that had long dragged on group returns. In Portugal, public-works spending linked to the EU’s Resilience Fund is only now trickling into the tender pipeline, meaning domestic growth may re-appear in late 2025.For the moment, management is leaning on Africa’s cash flow to smooth over the dip elsewhere, a strategy applauded by some brokerages and deemed risky by others worried about regional concentration.

How the market is digesting the news

Curiously, Lisbon-listed shares fell after the bumper earnings release, a reminder that markets trade on expectations, not headlines. Banco Carregosa strategist João Queiroz points to a year-to-date rally that had already priced in strong numbers, prompting investors to lock in gains.Research desks at CaixaBank BPI and Millennium IB also caution that guidance of a 3 % net margin and €180 M profit by 2026 implies a steep climb from today’s run-rate, particularly if Latin America stays sluggish. Consensus models pencil in a more conservative 2.3 % margin and €145 M profit—still healthy, but less spectacular than management’s vision.Despite the scepticism, Mota-Engil’s debt metrics are drawing praise: net leverage of 2.2× EBITDA sits comfortably below covenant ceilings, giving headroom for bolt-on acquisitions or a fatter dividend if global conditions hold.

Strategic roadmap: what to watch before 2026

Investors will get clearer sign-posts when Mota-Engil unveils its new strategic plan early next year, laying out targets through 2030. Key questions include whether the group will double-down on contract mining in West Africa, re-enter Eastern Europe via acquisitions, or chase green-infrastructure concessions funded by Brussels.Expats considering exposure should also monitor currency risk management, particularly any shift toward yuan-linked financing tied to Chinese partners who share equity in certain African joint ventures.For now, the takeaway is straightforward: Portugal’s most international builder just delivered its strongest first-half ever, fuelled by markets many foreigners seldom associate with a Lisbon-headquartered firm. Whether that momentum translates into shareholder outperformance will hinge on the company’s ability to replicate its African playbook elsewhere—and to keep politicians, bankers and exchange rates from spoiling the party.