TGCC: Revenues Up 50.5% as of 30 September 2025

TGCC has published its financial indicators for the period ended 30 September 2025.

During the third quarter of 2025, TGCC maintained strong growth momentum, driven by accelerated production across all its business segments. This operational performance was further supported by the integration of STAM Vias, which enhances the Group’s positioning on large-scale infrastructure projects, including civil engineering structures, roads, ports and dams, both in Morocco and internationally.

Reflecting the Group’s capacity to manage a growing project pipeline while sustaining a high execution rate, combined with the scope effect from the acquisition, operating revenue rose sharply by 58.9% in Q3 2025 and by 50.5% over the first nine months of the year, reaching MAD 8.7 billion at 30 September 2025. On a pro forma basis, cumulative operating revenue for the first nine months increased by 5.5%.

As of 30 September 2025, TGCC’s consolidated order book reached a record MAD 20.2 billion, marking a significant scaling-up for the Group. This increase reflects the expanded scope of activities, particularly through the combined expertise of the two entities, as well as sustained strong demand across all business lines. The robust order book provides enhanced revenue visibility and validates the Group’s diversification strategy. It also underscores the continued confidence of public, parapublic and private sector clients, both domestically and internationally.

Capital expenditure continued at an elevated pace during the third quarter, in line with the trajectory set earlier in the year, with cumulative CAPEX reaching MAD 606.4 million for the first nine months. This significant investment reflects the ongoing reinforcement of the Group’s industrial and equipment base, aimed at supporting the simultaneous execution of a larger number of projects and maintaining high productivity standards while strengthening its competitive positioning on technically complex contracts.

Following the repayment of debt incurred for the acquisition of STAM Vias, net debt stood at MAD 1.2 billion at 30 September 2025, compared with MAD 3.0 billion at 30 June 2025. This level of indebtedness remains fully aligned with the Group’s growth profile and ongoing investment requirements.

Interest and Advantages for Foreign Investors and Institutions in Moroccan Stocks – Focus on TGCC

TGCC (Travaux Généraux de Construction de Casablanca, ticker: TGC) has become one of the flagship infrastructure and construction plays on the Casablanca Stock Exchange and a prime beneficiary of Morocco’s multi-decade public and private investment cycle.

Key attractions for international investors and institutional allocators include:

•  Multi-Year Revenue Visibility: A record MAD 20.2 billion order book represents approximately 2.3× trailing twelve-month revenue, providing exceptional forward visibility in a sector often characterised by lumpiness. Roughly 85% of the backlog comes from public and parapublic contracts, offering relatively low counterparty risk.

•  Post-Acquisition Transformation: The 2025 integration of STAM Vias has shifted TGCC from a predominantly building contractor to a diversified infrastructure group with exposure to higher-margin civil engineering (roads, ports, dams, hydraulic works). This strategic pivot significantly de-risks the traditional building cycle and positions TGCC as a direct play on Morocco’s MAD 500+ billion infrastructure pipeline through 2035 (high-speed rail extensions, port expansions, 2030 World Cup venues, renewable energy projects, water infrastructure).

•  International Expansion Upside: Early-stage footholds in sub-Saharan Africa and a recently announced partnership with Saudi-based Naif Alrajhi Investment open Gulf and broader MENA opportunities, adding a new growth vector beyond the domestic market.

•  Balance Sheet Discipline Post-M&A: Rapid deleveraging from MAD 3.0 billion net debt (June 2025) to MAD 1.2 billion only three months later demonstrates strong free cash flow generation and prudent financial management despite an aggressive CAPEX programme (MAD 606 million YTD).

•  Attractive Valuation & Liquidity: Trading at approximately 12–14× forward P/E and an EV/EBITDA multiple below regional construction peers, while offering a 39% free float and daily liquidity that has improved markedly since the July 2025 capital increase. Multiple domestic brokers maintain “Buy” or “Outperform” ratings with price targets in the MAD 950–1,050 range (as of late November 2025).

•  Favourable Tax & Regulatory Treatment for Non-Residents: 15% withholding tax on dividends (often reduced to 7.5–10% under double-taxation treaties), full and unrestricted repatriation of capital and profits, and no capital gains tax on listed shares held by non-residents for more than six months in many treaty jurisdictions.

•  Macro Tailwinds: Morocco’s co-hosting of the 2030 FIFA World Cup, the National Water Plan (PNE 2020–2050), the 52% renewable energy target by 2030, and continued port/rail upgrades all feed directly into TGCC’s core competencies.

In summary, TGCC offers international investors a rare combination of defensive multi-year backlog visibility, exposure to Morocco’s structural infrastructure boom, and an improving international footprint — all at a reasonable valuation in a market that remains under-allocated by most global emerging-market funds. It is increasingly viewed by regional and European institutions as a core holding within any dedicated North Africa or frontier infrastructure allocation.