The 4 major construction groups – GEK Terna, Aktor, Avax and Metlen – are planning their next moves in order to ensure their future revenues despite the significant backlog of projects, totaling around 16.1 billion euros.
Aktor’s moves
In this direction, Aktor Group signed the binding agreement for the acquisition of Aktor Concessions from Ellaktor, a significant transaction that contributes to shaping the new landscape in the construction market.
Aktor’s chairman and CEO, Alexandros Exarchou, described it as extremely important for the Group, emphasizing that it ensures cash flows of 500 million euros, which together with the existing portfolio of concessions and PPPs, amount to a total of 1.2 billion euros. This is stable income over a 10-year period which, as he said, will shield Aktor “from the effects of possible downward cycles in the traditional construction market.”
Following the acquisition of Aktor Concessions, the target for EBITDA (earnings before interest, taxes, depreciation and amortization) of 40 million euros per year from concessions and PPPs in 2030 will be achieved five years earlier, while the return on capital available in cash (123 million), as he mentioned, is estimated at 10%-14%.
“We are creating the second largest portfolio of concessions and PPPs in Greece,” he pointed out, while adding that he is negotiating Aktor’s participation in two more concessions, with the agreement for one of them likely to be closed in May.
The acquisition of Aktor Concessions was agreed with an enterprise value of 367 million euros, with the assumption of its loan obligations totaling 187 million euros. Taking into account its cash available (57 million) the net price of the transaction amounts to 123 million euros.
After the acquisition, the Aktor Group will have a portfolio of 14 PPP and Concession projects, of which 7 are in operation, 2 are under construction, 1 is to be constructed and 4 in which it is the preferred contractor.
GEK TERNA’s projects
The leader in concessions certainly remains the GEK Terna Group, having in its portfolio, among others, Attiki Odos, VOAK and Egnatia Odos, for which the management, under the CEO, George Peristeris, estimated (recent analyst briefing) that the concession taking over process will be completed by the end of the year, subject to completion of the State’s prerequisites.
In 2024 alone, the concession and PPP contracts that GEK Terna postponed are worth approximately 2.5 billion euros with VOAK dominating (2 billion euros, not included in the Group’s announced backlog) while based on management estimates, the Group expects a doubling of adjusted EBITDA to 800-900 million euros in 2028 compared to 2024.
It will come, among other things, from the concession contracts of Attiki Odos, Egnatia, the energy unit in Komotini and later from investments in the new airport of Heraklion, Crete and in the integrated tourist complex with the casino in The Ellinikon.
Revenue from GEK Terna concessions increased by 48.5% to 337.9 million last year, with this sector contributing approximately 60% of operating profitability.
Avax
The Avax management is also seeking to strengthen the concessions sector.
According to the estimates of the Group’s chairman, Christos Ioannou, and the CEO Antonis Mitzalis, the goal is for activities other than construction (concessions, PPPs, real estate) to generate 40% of total EBITDA in five years. The estimated revenue from Avax’s existing concessions and PPPs (over their entire duration) is around 900 million euros.
Among the PPP projects it is claiming are two roads (the tender process is at the competitive dialogue stage) with a total value of approximately 700 million euros (Mavrovouni – Edessa and the vertical axis Drama – Amphipolis) and two building projects, the project of relocating the Korydallos prisons to Aspropyrgos, a PPP worth 765 million and the PPP worth 520 million for the creation of the government park at the Pyrkal facilities in the area of the municipality of Daphne – Hymettus. All construction groups are obviously fighting for these 4 projects.
Metlen’s third pillar
The infrastructure and concessions sector is emerging as a third important growth driver for Metlen, which is targeting a 20%-25% share in PPPs. From the Concessions sector, the listed company expects an average return (IRR) of 15%.
It has undertaken projects such as the Thessaloniki Flyover, bioclimatic school units and the Thessaly irrigation program.
