Avax aims to achieve EBITDA (earnings before interest, taxes, depreciation and amortization) of 150 million in the next five years (2029) from 105 million in 2024, as the executive chairman, Christos Ioannou, told the Group’s shareholders during the annual general meeting.
A percentage of 40% will come from non-construction activities. At the same time, the reduction in the Group’s net debt, which is expected to be below 100 million euros, will also be significant.
Following the recent refinancing of Avax’s borrowings, net borrowings at the parent company level amounted to 62 million euros.
With the new 300 million bond loan concluded in August 2024 by Avax Concessions, with a duration of 7 years and serviced exclusively from concession revenues, a significant part of the Group’s existing borrowings of 180 million were refinanced and additional financing of 120 million was secured for new investments.
The above action also freed up cash flows from construction in order to finance future investment projects in the concessions, energy and real estate sectors.
Furthermore, in order to boost recurring revenue from concessions, Avax actively participates in almost all tenders for PPP projects. Based on management estimates, it will need capital of 90 million in the coming years as its own participation in new concessions, requirements that it intends to cover with cash flows expected to arise from construction in the coming years.
