HAL Trust: H1 results update on my largest position

HAL trust shares have increased in value & the gap between fair value and market has increased.

A year ago I wrote about HAL Trust. The stock has done ok, but spectacular. With this update I will update my valuation in what is now clearly my largest position at 11.9%. I increased my exposure in steps with new funds and the sale of my position in Tessenderlo Group.

Largest news for HAL Trust

Buying VolkerWessels NL has the potential to be a game changer. No purchase price given yet but it seems the deal is in the due diligence phase and a purchase will likely happen. Given the way construction companies are historically valued this might be a great deal. Construction companies in the Netherlands for a long time had low margins but they have been increasing due to shortages. This might last for a couple of years leading to high profits and potentially a great deal.

This deal might will find a use for the excess cash at HAL Trust and potentially shine light on Boskalis. The big gem within HAL Trust that in my opinion creates most of the undervaluation.

Update on valuation

Trunk Boskalis keeps outperforming

Great results for H1 2025 and 2024 increase my confidence in my thesis that Boskalis in undervalued. Net profit in 2023 was €601M, net profits in 2024 are €781M, LTM net profits are €909M. LTM EBITDA is €1,5B. Book value of Boskalis is €5.5B.

Uncertainty for wind projects has increased but the outlook for the Dutch construction market has in my view improved. Last year I used a PE of 15 and EV EBITDA of 8 as rough valuation guides. This year will be slightly more conservative with a PE of 12 and EV EBITDA of 7. Leading to €10.9B and €10.5B respectively for an average valuation of €10.7B.

Ahead of last years valuation €8.5B, almost double the H1 2025 book value of €5.5B of Boskalis and close to the market cap of HAL Trust at €11.5B.

Branches: the listed investments

Value of the listed investments rose to €5B at H1 2025 from €4.4B at year end 2024. The cause is mainly the good share price performance at SBM Offshore and Technip Energies. Largest position is still terminal operator Vopak at €2.5B and reasonably valued at 10 times earnings.

I do like their positions in general given the reasonable valuations. SBM Offshore and Technip Energies as well. Even though the strong price performance makes them more expensive now. Not the biggest fan of Siltronic.

Safilo: 49.8% of €616M = €307M (PE:13.5)
SBM Offshore: 23.4% of €4.1B = €959M (PE: 13.4)
Technip Energies: 17.3% of €7B = €1,223M
Siltronic: 15,1% of €1.1B = €163M (somehow part of the liquid portfolio)

Twigs: other unlisted investments

HAL Trust has many unlisted investments like private equity but with minimal debt and no leakage through high fees.

Given the limited disclosure at H1 results I will value the twigs using the 2024 numbers.

This time I will value the twigs as a group. Excluding Boskalis the book value at YE 2024 is €2,275M, EBITDA is €628M and EBITA is €357M.

My conclusion is that book value is a conservative valuation for these companies. This implies a value of 3.6 times EBITDA and 6.4 times EBITA.

The unquoted interests have €566M book value. With €125M EBITDA (4.5x) and €77M EBITA (7.4x). Preferred shares in Koppert are valued at the investment price of €140M and valued separately given that the are preferred shares.

Conclusion on the twigs: €3B of book value is in my view a conservative valuation at 8 times EBITA. Given the quality and the way that HAL Trust runs most organisations with an eye on growth 11 times EBITA or €4B is also reasonable. I will use the conservative €3B of book value.

Real estate

NAV for the real estate in the portfolio outside the operating companies is €267M. These are assets around Seattle and some shopping malls in the Netherlands with transformation potential. Given the limited size to the overall portfolio I will value them at €200M.

Liquid portfolio

Consists of mostly cash and fixed income assets. Somehow the stake in Siltronic is also part of the liquid portfolio. End of 2024 €0.3B was in equities of the liquid portfolio for a total value of €2.4B. At H1 2025 results the liquid portfolio has a value of €2.3B.

Some of the parts

Boskalis - Trunk: €10.7B
Listed investments - branches: €5.0B
Other investments - twigs: €3.0B
Real estate: €0.2B
Liquid portfolio: €2.3B
Bonus: €0.3B
Total value: €21.5B

This compares favourably to the market cap of €11.5B.

Bonus: Since H1 2025 results and 22 August 2025 the listed investments and the liquid portfolio created €300M in value.

Conclusion

The market cap has increased since writing my first article on HAL Trust from €10.1 to €11.5B. My valuation however has also moved up from €17.7B to €21.5B. Percentage of fair value was 57.7% and now is 53.5%. This means that according to my valuation the company is even cheaper now than last year. In addition I see more potential for the market to recognize this valuation given the potential deal with VolkerWessels.

Disclaimer: These are my ideas and not personal investment advice. I might own shares discussed and can sell those shares at all times. I don’t know your financial situation. Do your due diligence and do not blindly follow an article on the internet.