HAL Trust’s Outperformance in 1H 2025 Earnings and Strategic Momentum: Assessing Sustainability and Value Creation

HAL Trust’s first-half 2025 earnings report reveals a striking outperformance, with net income surging to €1,024 million—nearly doubling the €510 million recorded in the same period of 2024—and revenue climbing to €7,058.7 million from €6,380.3 million [1]. This growth is underpinned by robust contributions from both quoted and unquoted holdings. Quoted interests, including Technip Energies and Vopak, generated €568 million in net income, a 293% increase year-over-year, driven by share price appreciation and improved earnings [1]. Meanwhile, unquoted companies like Boskalis delivered €705 million in operating income, up €183 million, reflecting stronger operational execution in energy infrastructure and offshore sectors [1].

The sustainability of this earnings growth hinges on HAL Trust’s strategic capital allocation. A key move in 2025 was the acquisition of VolkerWessels’ construction, project development, and infrastructure divisions, a €1.4 billion deal aimed at deploying idle cash and expanding into high-margin markets [1]. This acquisition aligns with HAL Trust’s focus on its “circle of competence,” leveraging its expertise in infrastructure and energy transition. However, the integration of these divisions will test HAL Trust’s operational capabilities, particularly in managing complex projects and mitigating execution risks.

Equally significant is HAL Trust’s 5.3% stake in Siltronic, a semiconductor-grade silicon wafer producer. While this investment lies outside HAL Trust’s traditional portfolio, it taps into a critical, non-substitutable input for the global tech industry [1]. Siltronic’s resilience—despite a 6.7% revenue decline in 2024—demonstrates its ability to maintain a 25.8% EBITDA margin, even in a cyclical downturn [1]. HAL Trust’s long-term orientation is evident in its patient capital approach, with the investment framed as a strategic bet on AI-driven demand and electric vehicle growth. Yet, the semiconductor sector’s volatility, including inventory overhangs and FX risks, poses challenges to near-term profitability [1].

HAL Trust’s sustainability strategy further reinforces its value-creation narrative. The company has committed to net-zero Scope 1 and 2 emissions by 2030 and net-zero Scope 3 emissions by 2040 [2]. These goals align with broader corporate trends, as 88% of global companies view sustainability as a value-creation opportunity [3]. HAL Trust’s focus on ESG integration—particularly in its unquoted holdings like Boskalis—enhances long-term resilience by aligning with regulatory and market demands for decarbonization.

Analyst evaluations underscore HAL Trust’s undervaluation, with an intrinsic value of €304.09 per share versus its current market price of €132.80 [4]. A 1-year average price target of €147.56 suggests potential upside, though short-term earnings growth remains constrained by macroeconomic uncertainties. The company’s liquid portfolio, valued at €2.3 billion as of June 2025, provides flexibility for further strategic deployments [1].

Risks and Strategic Considerations
While HAL Trust’s earnings growth appears sustainable, several risks merit scrutiny. The VolkerWessels acquisition’s success depends on synergies and cost discipline, while Siltronic’s performance is tied to semiconductor demand cycles. Additionally, HAL Trust’s governance transition—marked by Mel Groot’s retirement and management relocation to the Netherlands—could introduce operational friction.

In conclusion, HAL Trust’s 1H 2025 outperformance reflects a blend of market-driven gains and strategic foresight. Its focus on high-conviction investments, ESG alignment, and disciplined capital allocation positions it to navigate near-term volatility while capitalizing on long-term trends in energy transition and technology. However, investors must weigh the cyclical risks of its holdings against the company’s structural strengths.

Source:
[1] HAL Trust : Report on the first half year 2025, [https://www.marketscreener.com/news/hal-trust-report-on-the-first-half-year-2025-ce7c50dcd88df622]
[2] HAL Trust Sustainability Report, [https://ditchcarbon.com/organizations/hal-trust]
[3] Companies See Sustainability as a Way to Create Value, [https://www.morganstanley.com/insights/articles/corporate-sustainability-signals-report-2025]
[4] HAL Intrinsic Valuation and Fundamental Analysis, [https://www.alphaspread.com/security/aex/hal/summary]