Europe’s 100 biggest construction companies ranked

Image: Strabag

While construction output did grow in 2022, there has been very little good news – either for construction or for Europe.

In February, Russia invaded Ukraine, sparking much human misery in Ukraine itself, but also a painful combination of materials and energy price rises, protracted supply chain issues and rising inflation that only now shows signs of abating.

With this in mind, the fact that the total combined revenues of the CE100 companies topped €500 billion for the first time is significant.

The highest figure previously recorded on the CE100 was €480 billion, in the pre-Covid year of 2019.

Below are Europe’s 25 biggest construction companies ranked by turnover based on their 2022 financial results. For the full CE100 list, see the latest issue of Construction Europe magazine:

The rise and rise of Vinci

Vinci is working on the Grand Paris Express project in France (Image: AdobeStock - stock.adobe.com)

The impressive growth of Vinci, at the top of the list, is a major factor in this result, with the company leaping up from revenues of €49.8 billion last year, to this year’s eye-watering €61.7 billion.

As a group, Vinci obviously suffered during Covid, with many of the airports and roads on which it holds concessions barely registering traffic during the harshest periods of lockdown.

During 2022, it resoundingly recovered, with its construction division reporting very strong business levels and an improved margin, despite the higher costs and supply chain difficulties that were continuing from the previous year.

Along with many of the companies at the top end of the CE100 list, Vinci announced it had moved to a “highly selective approach when taking on new business”. It also said it was tracking ongoing megatrends, including the decarbonisation of transport infrastructure and buildings, the digital revolution and the adoption of renewable energy.

Within this space, Vinci Energies continued to grow its business, while the integration of the recently-acquired renewable energy company Cobra IS included the award of major new contracts.

Movement at the top of the table

The rest of the CE100’s top 10 companies remain reasonably settled, with the top seven retaining their places and Spain’s Acciona (8th) and the UK’s Balfour Beatty (9th) swapping last year’s positions.

The Netherlands-based BAM Group fell from last year’s 10th spot, down to 15th, due largely to divestments the company completed in Belgium and Germany. These resulted in a 10% decline in total revenue, but BAM said it was confident of delivering on its 2023 strategic targets.

In terms of movement, there are very few surprises in the top 25 companies on the list. The first sizeable move comes from Spain’s Tecnicas Reunidas, which moves up 16 places to 27th.

Commenting on the company’s 2022 results, executive chairman Juan Lladó predicted a “multiyear investment supercycle in the energy sector, in both the traditional and the low carbon sector”.

Describing Tecnicas’ 51% rise in sales, compared with 2021, he said, “The market is giving us the opportunity to grow and we will.”

Big rises and new entries

Mota-Engil reported a strong increase in sales in Latin America, driven by rail projects in Mexico (Image: Mota-Engil)

Another big top-half move is Portugal’s Mota-Engil, which has risen 15 places to 33rd.

The leap is the result of a 47% rise in revenue, compared with 2021’s result, with net income up a whopping 90%. It follows the acquisition of a 30% stake in the company by state-owned Chinese contracting giant China Communications Construction Company (CCCC) in 2020. Mota-Engil needed an injection of capital and the deal was attractive to CCCC, which wanted greater access to Africa and Latin America, where the Portuguese firm already has significant experience.

In its end-of-year report for 2022, Mota-Engil described its strategic plan of creating five business segments, including three regions (Africa, Europe and Latin America). Of these, it highlighted the stunning performance of Latin America, which grew its revenues by 145%, along with very strong results from Africa (+44%).

And speaking of top performances, the highest new entry on the CE100, is another Spanish contractor, Elecnor, which saw growth both in its home market and with international awards, which now total 59% of revenues.

Elecnor comes straight into the CE100 list at number 34, and with a turnover in 2022 of just over €3.6 billion.

Financial analysis

The figures for this year’s CE100 list are based on revenues from 2022 – a year that saw a continuing upward trend, in terms of construction output, but ended with the promise of further challenges ahead, in the shape of rising inflation and increasing geopolitical fallout, due to the ongoing war in Ukraine.

From a construction perspective, revenues for the CE100 companies totalled €504.7 billion in 2022, a very impressive increase of just over 12% on the previous year’s figure.

While France’s construction market is fighting similar challenges to many European countries, its largest contractor (Vinci) remains head and shoulders above its CE100 challengers, with revenue of approximately €61.8 billion.

While France has only eight companies in the top 100, it has three in the top 10 and a total combined revenue of €146.1 billion, or 28.9% of the list’s total.

Given the size of the construction markets in Germany and the UK, one might be surprised to find that Spanish contractors take the second spot, in terms of combined revenues, with €82.3 billion.

From a total of 12 companies on the list, Spain has five in the top 20, with ACS in third place, reporting revenue of €33.6 billion in 2022.

The UK boasts 23 CE100 companies, more than any other nation, but has only one, Balfour Beatty, in the top 10.

Combined revenues from UK companies totals €71.9 billion.

Similarly, Germany also has only one company in the top 10 (Hochtief, in fourth spot). Beyond that, there are only seven more German companies in the top 100, with combined revenues totalling €41.5 billion.

Another major construction market, Italy, also comes in with eight CE100 companies, the highest of which is Saipem in 10th spot.

Combined revenues for Italian companies on the list total €24.1 billion, which represents just 4.8% of the entire CE100.

Methodology

The CE100 is based on sales revenues in 2022. It is compiled from a range of sources including audited annual accounts, companies’ own statements of revenues and information from reputable third parties, such as Dun & Bradstreet.

In some cases CE has estimated company revenues.

If you believe your company should be represented on this list, or that estimates are incorrect, please contact the editor, Mike Hayes, at [email protected]