Continuing its growth path, GAM earned a profit in the second quarter of 2018.

  • The Company's sales grew by 10% in the first half of 2018 thanks to a greater use of the machinery fleet, investment in Latin America and the industrial sector and the growth of services.
  • EBITDA grew 18% in the period and the operating margin improved two points to 26%.
  • The Company achieved a net book profit of 0.3 million euros in the second quarter.

The Spanish multinational GAM (General de Maquinaria de Alquiler, BME: GALQ) presented its results corresponding to the first half of 2018, highlighting the 10% growth in sales, totalling 61.4 million euros compared to 55.9 million in the same period of 2017.

This increase is mainly the result of increased use of the machinery stock and the significant growth that all the business lines associated with the provision of value-added services that doubled their sales figures compared to the same period last year.

EBITDA increased by 18% the first six months to 16 million euros as a result of the increase in sales and the operating leverage on costs, which led to an improved margin to 26%.

This improved profit led to a net profit of 0.3 million euros in the second quarter of the period.

Evolution by region

On the Iberian Peninsula and in Morocco, from where the Company obtains 80% of its income, sales grew by 16% thanks to the increase in long-term agreements aimed at the industrial sector (which had a positive effect on occupation) and the growth in services that do not require investment into machinery.

In Latin America, which contributes 18% of revenue, sales grew by 2% driven by investments made to strengthen the machinery park in Chile and Mexico, which offset the weakness of the currencies against the euro.

Finally, Saudi Arabia, which accounts for 2% of GAM's total, maintained a low activity level.

Evolution by business line

The traditional rental business grew by 3% thanks to the greater use of the park (mainly driven by the growth in long-term agreements aimed at the industrial sector) as well as improved prices in Spain and Portugal. These positive effects offset the negative behaviour of currencies in Latin America, with an average depreciation of 9%.

On the other hand, the new business of providing services (training, maintenance, sales, sale of used machinery through the online portal or events) that do not require investment in machinery showed strong growth. In addition, the machinery distribution business was incorporated into the portfolio in this six-month period. Overall, the service line doubled its turnover.


In the first half of 2018, EBITDA was 16 million euros, with an increase of 2.4 million, 18% compared to the same period in 2017. GAM continues to apply rigorous cost control which, together with the growth in sales, has enabled it to improve operating margin by two percentage points up to 26%.

This improved EBITDA meant that the business's operating profit, which indicates the recurring result and cash generator, was positive with a figure of 0.9 million euros over the whole six months.

The evolution of the book profit was especially significant in the last three months of the period in which, thanks to the higher sales and EBITDA, the Company obtained a net profit of 0.3 million euros.