Tecnicas Reunidas has announced the approval of a share buyback programme for a maximum amount of €50 million, which is expected to start on 16 September 2026 and end no later than 31 March 2027.
The shares acquired will be cancelled, which will reduce the company's share capital. With this operation, Tecnicas Reunidas aims to increase earnings per share, and therefore the remuneration of its shareholders.
The maximum number of shares to be acquired will depend on the average purchase price. Assuming a theoretical price of €25 per share, the buyback would equate to 2 million shares, representing 2.49% of the share capital. These would be added to the 2.7% that the company already holds in treasury shares. The number of shares to be acquired will not exceed 10% of the current share capital in any case.
We view the news positively, as the buyback and cancellation of shares is a way to reward shareholders by increasing earnings per share. However, the impact is limited, as the amount of €50 million represents approximately 2.4% of the company's current market capitalisation.
We believe this is a signal of confidence from the management team in the company's future prospects and its cash generation capacity. The operation will take place after repaying the loans to SEPI and in parallel with the resumption of dividend payments.
Positive impact on the share price, although limited. We reiterate our OVERWEIGHT recommendation with a target price of €36.4 per share.