EQS-News: STRABAG SE Trading Statement 9M/2022: higher output forecast for 2022

The publicly listed European technology group for construction services STRABAG SE today announced its figures for the first nine months of 2022. “Given the high order backlog and the predominantly favourable weather to date, we are raising the forecast for our output volume in 2022 from € 16.6 billion to at least € 17.0 billion. As certain construction segments are currently experiencing a downturn, our corporate strategy of diversification is again proving its worth. In particular, public-sector demand in the infrastructure sector is having a stabilising effect. As many as 63 % of our clients are in the public sector,” says Thomas Birtel, CEO of STRABAG SE.

Output volume

In the first nine months of 2022, the STRABAG SE Group generated a 10 % higher output volume of € 12,645.28 million, even surpassing the level from the same period of the 2019 record year. The largest increase in output volume in absolute terms was recorded in the home market of Germany. This was followed by the United Kingdom, where the execution of the two largest projects in the order backlog is gaining momentum, and by Austria and the Czech Republic. By contrast, there was a moderate decline in output volume in Poland, Slovenia, Denmark, and the Benelux countries.

Order backlog

The order backlog grew by 8 % over the same period of the previous year, reaching € 23,327.59 million as at 30 September 2022 – only slightly below the record level from the first half of 2022. Growth was recorded in the home markets of Germany and Austria, mainly in building construction and civil engineering, as well as in Italy, Romania and Croatia. Due to the ongoing execution of several major projects, however, the order backlog decreased in Hungary, the United Kingdom, and Denmark.

Employees

The number of employees, at 73,496, remained virtually unchanged compared to the first nine months of the previous year. Slight decreases in the Americas and in Poland were largely offset by increases mainly in Germany and the United Kingdom.

Outlook

The Management Board now expects to generate an output volume of at least € 17.0 billion in the full year – the guidance in the half-year was € 16.6 billion. The target of achieving an EBIT margin of at least 4 % remains unchanged. Net capital expenditure (cash flow from investing activities) is not expected to exceed € 550 million.

STRABAG SE is a European-based technology group for construction services, a leader in innovation and financial strength. Our activities span all areas of the construction industry and cover the entire construction value chain. We create added value for our clients by taking an end-to-end view of construction over the entire life cycle – from planning and design to construction, operation and facility management to redevelopment or demolition. In all of our work, we accept responsibility for people and the environment: We are shaping the future of construction and are making significant investments in our portfolio of more than 250 innovation and 400 sustainability projects. Through the hard work and dedication of our approximately 74,000 employees, we generate an annual output volume of around € 16 billion. Our dense network of subsidiaries in various European countries and on other continents extends our area of operation far beyond the borders of Austria and Germany. Working together with strong partners, we are pursuing a clear goal: to design, build and operate construction projects in a way that protects the climate and conserves resources. More information is available at www.strabag.com.