Duro Felguera aims a major EBITDA increase and capital strengthening with Prodi and Mota-Engil Mexico as partners
Duro Felguera is targeting a dramatic expansion of its operating results, aiming to raise EBITDA from five million euros in 2022 to ninety five million euros by 2028. The plan to fuel this growth involves the Development and Infrastructure Promotion Group, known as Prodi, alongside Mota-Engil México as industrial partners.
The strategy calls for a substantial lift in net profit, with a projection to grow thirteenfold, while sales are expected to reach 1,015 million euros in 2028, a step up from 123 million euros in 2022. In parallel, the company anticipates the contract portfolio to rise to 1,100 million euros by 2028.
A core part of the plan is an injection of 90 million euros in capital that will remain within the business, strengthening the company’s capacity to meet and exceed the feasibility targets laid out in the plan. This funding is designed to inject fresh liquidity into the balance sheet, enabling the execution of the business plan and ultimately increasing value for shareholders and other stakeholders. The information was presented by the Asturian company to the Spanish market regulator, the CNMV, in a formal disclosure.
Prodi and Mota-Engil México will participate as reference shareholders, bringing financial strength, enabling commercial synergies, and supporting the overall business plan. Their involvement is also expected to bolster confidence in the market and among customers.
The company explains that the proposed structure preserves existing shareholder subscription rights, allowing shareholders to participate in the recovery and growth of Duro Felguera while pursuing a robust strategy. This framework also considers the possibility of an exemption from an unsolicited premium offer, should circumstances permit.
The CEO of Duro Felguera, Jaime Argüelles, spoke during a Madrid briefing about the entry of industrial investors. He expressed conviction that the company satisfies CNMV criteria for exemption from an unsolicited takeover offer thanks to the recent capital increase.
The company’s schedule, according to its public agenda, includes the signing of an MOU in February followed by an extraordinary shareholders’ meeting on either 12 or 13 April. At that meeting, shareholders would approve a capital increase totaling 39.83 million euros, combining nominal value, a premium, and monetary contributions, with recognition of shareholder preference for commitment. There would also be a capital increase through loan compensation for a total of 90 million euros, to be funded by the industrial investors, plus any accrued interest up to the execution date.
The agreed price for both transactions is 0.7661 euros per share. The company anticipates obtaining the takeover exemption and proceeding with the capital increase from July. Argüelles noted that the capital injection will improve liquidity at a critical moment, helping to stabilize the company’s treasury situation.
He also acknowledged that the company has faced a challenging liquidity scenario and that the consolidation of the capital increase is intended to support Duro Felguera’s ongoing development. This is viewed as an essential step toward ensuring the company’s sustainable growth and long-term viability.
On the human resources front, Argüelles reported that approximately 100 positions have been affected, either through an early retirement scheme or voluntary departure programs. The remainder of the workforce is expected to continue contributing to the company’s strategic objectives as the capital plan advances.