3i Infrastructure (LON:3IN) Issues Quarterly Earnings Results

Key Points

• 3i Infrastructure reported quarterly EPS of 18p and revenue of £101 million. For the half year, total return was 4.5%, with NAV at £4.164 per share and portfolio EBITDA up more than 12%; management remains on track for its 8%–10% full-year return target.
• The company is targeting a FY 2027 dividend of 14.3p per share, up 6.3% year over year, and expects it to be well covered by net income. It announced an interim dividend of 7.15p.
• After selling TCR and investing in LMD, 3i Infrastructure had £269 million in cash and up to £1.2 billion in available liquidity. Management also flagged operational and valuation headwinds, including delays at ESVAGT, weak demand at SRL, adverse currency movements, and a higher cost of debt.

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

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 Price Performance

LON:3IN traded up GBX 5.50 during trading hours on Wednesday, hitting GBX 409. 828,577 shares of the stock were exchanged, compared to its average volume of 2,011,753. The company has a current ratio of 0.85, a quick ratio of 0.57 and a debt-to-equity ratio of 15.26. 3i Infrastructure has a 52-week low of GBX 325 and a 52-week high of GBX 412. The company has a market cap of £3.77 billion, a P/E ratio of 12.78 and a beta of 0.50. The firm's fifty day moving average price is GBX 391.51 and its 200 day moving average price is GBX 372.37.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on 3IN. Canaccord Genuity Group restated 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 note on Thursday, October 1st. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, 3i Infrastructure presently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 450.

3i Infrastructure Company Profile

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.

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