Mota-Engil, SGPS, S.A.: history, ownership, mission, how it works & makes money

A Brief History of Mota-Engil, SGPS, S.A.

Mota-Engil, SGPS, S.A., a leading multinational company based in Portugal, has established a significant footprint in the construction, engineering, and waste management sectors. Founded in 1946 by Eng. Joaquim Mota and Eng. José Engil, the company initially focused on public works, gradually expanding its operations across various sectors and geographies.

In the 1970s, Mota-Engil undertook major infrastructure projects in Portugal, marking its transition from a domestic player to an international contractor. The company's commitment to quality and innovation facilitated its expansion into African markets, where it undertook road construction, water supply, and energy projects, particularly in countries like Mozambique and Angola.

By the 1990s, Mota-Engil had diversified its operations, entering the environmental services sector. The establishment of Mota-Engil Environment and the acquisition of waste management companies showcased the firm's strategic pivot towards sustainable practices. As of 2021, the environmental services division contributed approximately 14% to the company's total revenue.

A pivotal moment in Mota-Engil's history occurred in 2014 when the company listed its shares on Euronext Lisbon, raising over €100 million to finance its international expansion and diversification. The IPO allowed Mota-Engil to strengthen its balance sheet, with total equity reaching €517 million by the end of 2020.

As of 2023, Mota-Engil operates in over 20 countries, with a workforce exceeding 10,000 employees. The company continues to focus on infrastructure and energy projects, leveraging its expertise to contribute towards sustainable development in the regions it serves.

In recent years, Mota-Engil has reported steady growth in its annual revenues, achieving approximately €1.5 billion in total revenue for the fiscal year ending December 2022. This growth is attributed to ongoing infrastructure investments in Mozambique, Angola, and Portugal, alongside its environmental services portfolio.

The company’s strategic initiatives emphasize sustainability, aligning with global trends towards circular economy practices. Mota-Engil's commitment to environmentally friendly projects has resulted in a reported reduction of 30% in carbon emissions per project over the past five years.

A Who Owns Mota-Engil, SGPS, S.A.

Mota-Engil, SGPS, S.A. is a significant player in the construction and infrastructure sector, with a diverse portfolio spanning various geographical regions. As of the latest available data, the company operates in several countries across Europe, Africa, and Latin America.

Ownership of Mota-Engil is primarily divided among several major shareholders. According to the 2022 Annual Report, the ownership structure of the company is as follows:

The company is also listed on the Euronext Lisbon stock exchange, which provides liquidity and market exposure. The stock performance has shown resilience, with a market capitalization of approximately €1.5 billion as of October 2023. Over the past year, the share price has fluctuated between €3.00 and €4.50, reflecting wider market trends and operational performance.

Mota-Engil reported revenues of €1.95 billion for the fiscal year 2022, with an EBITDA margin of approximately 9.5%. Net income for the same period stood at around €130 million.

Major projects currently influencing ownership dynamics include large-scale public infrastructure contracts in Portugal and emerging markets in Africa, such as road construction and water supply projects. The company’s strategic focus on international growth is aimed at diversifying the revenue base and reducing dependence on European markets.

Furthermore, Mota-Engil's commitment to sustainability has led to new partnerships with various governmental bodies and multinational corporations, enhancing its reputation and market position. The investment in renewable energy initiatives is expected to attract new shareholders and investors, which could shift the ownership landscape in coming years.

Mota-Engil, SGPS, S.A. Mission Statement

Mota-Engil, SGPS, S.A., a prominent name in the construction and engineering sector, articulates its mission statement with a focus on sustainable development, innovation, and excellence in service delivery. The company’s mission emphasizes a commitment to quality, safety, and responsibility, aiming to create lasting value for all stakeholders.

As of the most recent financial report for FY 2022, Mota-Engil reported a total revenue of €3.2 billion, showcasing a growth of 12% compared to FY 2021. This growth highlights the company’s focus on expanding and enhancing its infrastructure projects across various sectors.

Mota-Engil’s mission is encapsulated in its strategic objectives, which include expanding its international presence, particularly in Africa and Latin America. The company operates in over 25 countries, deploying more than 22,000 employees to execute diverse projects ranging from civil engineering to energy and environmental management.

The company’s commitment to sustainability is reflected in its integration of environmental best practices in project execution. Mota-Engil has made significant investments in renewable energy, reporting plans to allocate €250 million towards sustainable infrastructure by 2025. This forward-thinking approach aligns with global trends towards environmental responsibility.

Furthermore, Mota-Engil emphasizes the importance of safety in its operations, achieving a 24% reduction in workplace accidents in 2022 compared to the previous year. Such metrics underline the pivotal role that safety plays within the company’s mission framework.

The mission statement also addresses innovation, where Mota-Engil has increased its R&D spending by 20% in the past year, focusing on advanced construction techniques and digital transformation initiatives aimed at improving efficiency and productivity.

In conclusion, Mota-Engil, SGPS, S.A. positions itself as a leader in the construction and engineering sector, driven by its mission to promote sustainability, safety, and innovation while delivering exceptional value to its stakeholders.

How Mota-Engil, SGPS, S.A. Works

Mota-Engil, SGPS, S.A. operates as an integrated infrastructure and engineering company engaged in the construction sector, environmental services, and concessions. Founded in 1946, the company has expanded its footprint to various international markets, particularly in Europe, Africa, and Latin America.

The company is structured mainly into three business segments: Construction and Public Works, Environment and Services, and Concessions. Each segment plays a critical role in the company's overall operations and revenue generation.

Financial Overview

As of the latest financial reports for 2022, Mota-Engil reported a consolidated turnover of €2.98 billion, representing a 19% increase compared to 2021. The company achieved a net profit of €88.7 million, translating to an increase of 8.4%.

Business Segments

• Construction and Public Works: This segment is the backbone of Mota-Engil, contributing approximately 70% of total revenues. Key projects include infrastructure developments such as roadways, bridges, and railways.
• Environment and Services: Engaging in waste management and environmental remediation, this segment contributes about 20% of revenues.
• Concessions: Involving public-private partnerships in infrastructure projects, this segment has shown growth potential with approximately 10% of total revenues stemming from this sector.

Geographical Presence

The company has operations across several countries, with significant revenue contributions coming from:

Strategic Projects

Mota-Engil is currently involved in several large-scale projects, including:

• Construction of the Luanda International Airport in Angola.
• Development of the Maputo Ring Road in Mozambique.
• Water treatment facilities in Peru.

Future Outlook

Mota-Engil is focusing on expanding its operations in renewable energy and sustainable construction practices. The company has set a target of increasing its revenues by 15% annually over the next three years through diversification and geographical expansion.

In 2023, the company anticipates further investment in digitalization and technology to enhance operational efficiency, with an estimated budget allocation of €50 million for innovation initiatives.

How Mota-Engil, SGPS, S.A. Makes Money

Mota-Engil, SGPS, S.A. operates primarily in the construction and engineering sectors, with a strong emphasis on infrastructure development. The company generates revenue through several key segments, including engineering and construction, environmental services, and investments in concessions.

Revenue Breakdown

For the fiscal year 2022, Mota-Engil reported revenues of approximately €2.4 billion, with the following breakdown:

• Engineering and Construction: €1.8 billion
• Environmental Services: €400 million
• Concessions and PPP Projects: €200 million

Geographical Revenue Sources

The company's operations are diversified across several countries, contributing to its revenue mix:

Key Projects and Contracts

Mota-Engil has secured various significant contracts that bolster its financial performance. For example:

• Construction of the Abidjan Metro in Ivory Coast valued at approximately €600 million.
• Development of the Lisbon Metro Expansion with a total value of €250 million.
• Environmental management projects across Portugal worth around €150 million.

Cost Management and Profit Margins

The company has maintained a focus on operational efficiency, resulting in a net profit margin of 5.8% as of the end of 2022. The gross margin was reported at 15%, indicating effective cost management.

Financial Performance Indicators

As per the latest earnings report, Mota-Engil's key financial indicators are as follows:

Current Market Trends

In 2023, Mota-Engil is positioned to benefit from increasing public investments in infrastructure throughout Europe and Africa, with projected growth in the industry estimated at around 4.5% per year. The company aims to expand its portfolio in renewable energy and sustainable construction, aligning with global trends towards sustainability.

Overall, Mota-Engil, SGPS, S.A. capitalizes on its diverse revenue streams, geographical presence, and strategic project management to sustain its financial growth and market position.