The annual general meeting of the AVAX Group concluded with chairman Christos Ioannou announcing the continuation of strong performance in 2024, further reduction of net debt, undertaking investment initiatives to diversify the activity mix, and steadily generous shareholder rewards in the coming years. The company also announced an increased dividend distribution of €0.07 per share – 130% higher than last year.
Read: AVAX Group: 1.4 km tunnel under Galatsi ready – Metro tunneling machine “Niki” heads toward Kypseli
Target of €150 million EBITDA and net debt below €100 million
Mr. Ioannou emphasized that based on the existing Business Plan, AVAX’s net debt is expected to reach levels below €100 million over the next 5 years. This results from linking a significant portion of debt, following recent refinancing exclusively with revenues from concessions estimated at €150 million for the next 5 years, and from generating strong cash flows from the construction sector. The expected capital deleveraging, combined with increased EBITDA to levels of €150 million within the next five years – resulting from both executing projects with increased profitability (EBITDA margin of at least 10%) and creating recurring revenue from additional concessions, existing marinas and ongoing residential projects – makes AVAX stock a safe investment haven combining risk diversification through a diversified activity portfolio and stable dividend policy for shareholders.
Analyzing the Group’s strategy, Mr. Ioannou noted that the strong momentum shown by the Group in 2024 – with a historic EBITDA record of €105 million continuing into Q1 2025 with 23% revenue growth – signals further strengthening of positive results. He noted that the strategic goal is for 40% of EBITDA to come from non-construction activities, although construction remains the Group’s core business.
AVAX: Early delivery of 9 km from first section of Patras-Pyrgos highway by end of July
AVAX Group CEO Konstantinos Mitzalis discussed ongoing projects. For Athens Metro Line 4, he noted that tunnel construction is proceeding exactly on schedule, with one tunneling machine having completed 60% of its route at 3.3 km, approaching Panepistimiopolis station, while the second has reached 1.6 km and is moving toward Elikonos station. For the Thessaloniki flyover, he emphasized normal implementation with completion by 2027, while the three hospitals of the Stavros Niarchos Foundation will be ready in early 2027. Referring to the imminent delivery of the second and third sections of Patras-Pyrgos highway, Mr. Mitzalis announced that AVAX, constructing the first 21 km, will deliver 12 km of road from the first section by end of July instead of 3 km – delivering 9 km of road four months earlier than contractually required.
AVAX Group: Key points from the General Assembly:
- Strong financial results, combined with continued net debt reduction where Net Debt to EBITDA fell below 2.5 times for the first time versus 7.4 times in 2020, allow for a 130% increased dividend proposal of €0.07 from 2024 earnings, versus €0.03 last year.
- In March 2025, to broaden institutional investor participation in the company’s share capital, major shareholders successfully disposed of a 4.4% stake, raising total institutional investor percentage to approximately 11%. Major shareholders continue to hold 55% of company shares.
- Recording significant +50% growth since early 2025, AVAX stock has significantly outperformed the Athens Stock Exchange general index, reflecting only part of the fair value and prospects of both the construction sector and the concessions and other activities portfolio. The EV/EBITDA ratio stands at 5.5 times, representing a significant discount compared to domestic and international competition.
- Consolidated sales in 2024 increased 44% to €651 million due to accelerated execution of recently undertaken projects including Athens Metro, the Romania power plant, Flyover, Elliniko projects and Stavros Niarchos Foundation hospitals.
- The Group’s backlog remains at €3 billion due to new contracts signed in the last six months, including projects for Daniel storm damage restoration and private projects for Papastratos and Sklavenitis.
- With the new €300 million bond loan concluded in August 2024 by AVAX Concessions, a significant portion of the Group’s existing €180 million debt was refinanced and additional €120 million financing was secured for new investments, such as acquiring additional stake in Olympia Odos and participating in the Flyover, thus freeing cash flows from construction to finance future investment plans in concessions, energy and real estate sectors.
- After refinancing, net debt at parent company level amounts to just €62 million, while following repayments mainly from capital return of Aegean Highway, the bond loan balance stands at €189 million with an additional €33 million available for disbursement.
- Regarding the Group’s next investment moves, efforts focus on securing new PPP projects in the coming period. Through AVAX Development, the investment program for developing and selling residential complexes totaling 15,000 sq.m. with commercial value exceeding €70 million primarily in island destinations is in full progress. Also, undertaking investment initiatives through subsidiary iXiON ENERGY in activities where the Group has traditional presence, such as energy, through recently submitting a proposal for connecting a 100MWh energy storage station it intends to build in the Boeotia region.
