(Bloomberg) -- Italian engineering and tech group Maire SpA is weighing options to unearth value at its NextChem division, Chief Executive Officer Alessandro Bernini said.
Milan-based Maire recently split NextChem into three business lines and named Chief Financial Officer Fabio Fritelli to run it. Now, the company could look to attract partners or position itself for a possible future listing of the unit.
“The equity market is not properly acknowledging NextChem’s value and that’s frustrating,” Bernini said in an interview Monday.
Engineering, procurement and construction contractors are generally valued at around 5-6 times earnings before interest, taxes, depreciation, and amortization, the CEO said, while tech-focused businesses like NextChem should be valued at 12-15 times Ebitda.
That means Maire’s sustainable technology business, led by recently reorganized NextChem, could in the future be valued at a minimum of €1.5 billion ($1.6 billion), Bernini said.
The CEO also said the mid-to-high end of this year’s revenue target range is within reach.
“Considering what we achieved as of the end of September, we expect to be very close to €5.9 billion to €6 billion in revenue by the end of this year,” Bernini said.
Maire on Monday reiterated revenue guidance of €5.7 billion to €6.1 billion for 2024 with fourth-quarter sales expected to reach at least €1.8 billion.
Ebitda margin and adjusted net cash are expected to be in line with the company’s nine-month results. Maire also said it expects €6 billion in new orders on top of the €3.7 billion recorded as of September.
The upbeat outlook is part of the reasoning behind possible plans for NextChem, the CEO said, adding that “a financial investor could be suitable for a transaction involving a minority stake.”
That could also lead to bigger plans for the unit, said Bernini, who took the top job at the firm in 2022. “We’re not excluding an eventual IPO.”
--With assistance from Alberto Brambilla.
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