3i Infrastructure (LON:3IN) Releases Earnings Results

3i Infrastructure (LON:3IN) announced its quarterly earnings data on Tuesday. The company reported GBX 18 earnings per share (EPS) for the quarter, Digital Look Earnings reports. 3i Infrastructure had a return on equity of 10.77% and a net margin of 92.78%. The business had revenue of £101 million for the quarter.

Here are the key takeaways from 3i Infrastructure’s conference call:

• 3i Infrastructure reported a 4.5% total return for the half year and said it remains on track to meet its 8%–10% full-year return target. NAV rose to £4.164 per share, supported by like-for-like portfolio EBITDA growth of more than 12%.
• The company is on track to deliver its FY 2027 dividend target of 14.3p per share, a 6.3% increase on the prior year, and said the dividend is expected to be well covered by net income. It announced an interim dividend of 7.15p per share.
• After selling TCR and investing in LMD, the company ended September with £269 million in cash and up to £1.2 billion of available liquidity, giving it flexibility for further investments. Management highlighted a long record of recycling capital, with £4.4 billion of realizations since FY 2016 at an average 37% uplift to carrying value.
• Growth initiatives across the portfolio include Infinis solar and battery projects, strong connectivity demand at FLAG, and new contracts and expansion opportunities at several businesses. Management also cited potential upside at newly acquired LMD, while noting that forecasts and opportunities remain subject to review.
• Some operational and valuation pressures remain: ESVAGT’s offshore vessel construction has faced further delays, SRL is contending with weak demand and increased competition, and volatile macro conditions and adverse currency movements weighed on valuations. The weighted average cost of debt rose to 5.5%, up 0.7 percentage points from year end.

3i Infrastructure Stock Up 1.4%

LON 3IN traded up GBX 5.50 during trading hours on Wednesday, hitting GBX 409. The company had a trading volume of 828,577 shares, compared to its average volume of 2,011,753. The firm’s 50 day moving average is GBX 391.51 and its 200 day moving average is GBX 372.37. The company has a debt-to-equity ratio of 15.26, a current ratio of 0.85 and a quick ratio of 0.57. 3i Infrastructure has a fifty-two week low of GBX 325 and a fifty-two week high of GBX 412. The company has a market capitalization of £3.77 billion, a price-to-earnings ratio of 12.78 and a beta of 0.50.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on 3IN shares. Canaccord Genuity Group reiterated a “hold” rating on shares of 3i Infrastructure in a research note on Wednesday, September 30th. Jefferies Financial Group reiterated a “buy” rating on shares of 3i Infrastructure in a research report on Thursday, October 1st. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, 3i Infrastructure currently has an average rating of “Moderate Buy” and a consensus price target of GBX 450.

About 3i Infrastructure

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, an approved UK Investment Trust, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company’s purpose is to deliver a long-term sustainable return to shareholders from investing in infrastructure. 3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Manager to 3i Infrastructure plc.