Strabag sees 9% increase compared to previous year
By Catrin Jones31 August 2023
Strabag recorded an output volume of €8,258.62 million in the first half of 2023, which is said to be 9% higher than in the same period of the previous year.
The completion of large orders is said to have boosted the company’s output, in addition to benefitting from inflation. Strabag says that its main markets are in Germany, Austria, Romania, the United Kingdom, and Poland where they saw substantial growth in sales, while work in the Czech Republic, Denmark, and Sweden decreased. Overall, group revenue increased by 6%.
In March 2023, the order backlog surpassed €24 billion for the first time. By the end of June, it remained above this mark at €24,320.48 million, representing a slight increase of 1% compared to the previous year.
The company saw the most significant growth in Germany, Romania, Croatia, Italy, and Poland. However, there were declines in the Americas and the United Kingdom due to the completion of large projects in those regions.
Austria experienced a decrease in the order backlog by 5%. The ongoing interest rate turnaround and stricter lending guidelines for residential construction loans contributed to these changes.
“We have succeeded in carrying over the strong start to 2023 into the first half of the year and are pleased to be able to report a significant increase in output and earnings. Based on our high order backlog and strong increase in output in the first half of the year, we are raising our output forecast for the full year 2023 to around €18.6 billion. Our target of at least 4% for the EBIT margin remains unchanged,” says Klemens Haselsteiner, CEO of Strabag.