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

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

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

3IN traded up GBX 5.50 during trading on Wednesday, reaching GBX 409. The company’s stock had a trading volume of 828,577 shares, compared to its average volume of 2,011,753. The company has a market cap of £3.77 billion, a price-to-earnings ratio of 12.78 and a beta of 0.50. The firm has a fifty day simple moving average of GBX 391.51 and a two-hundred day simple moving average of GBX 372.37. 3i Infrastructure has a 1 year low of GBX 325 and a 1 year high of GBX 412. The company has a quick ratio of 0.57, a current ratio of 0.85 and a debt-to-equity ratio of 15.26.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Canaccord Genuity Group reissued a “hold” rating on shares of 3i Infrastructure in a research note on Wednesday, September 30th. Jefferies Financial Group reaffirmed a “buy” rating on shares of 3i Infrastructure in a research note on Thursday, October 1st. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company 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.