The corporate introduced on Wednesday that its efficiency within the first quarter of this 12 months rose solely barely by 2 p.c to EUR 3.44 billion in comparison with the identical interval final 12 months. The order backlog remained nearly unchanged at EUR 24.55 billion (similar interval final 12 months: EUR 24.51 billion). Nonetheless, the anticipated rate of interest turnaround is predicted to stimulate the market within the second half of the 12 months.
“The tendencies of the earlier 12 months continued within the first quarter of 2024,” reported CEO Klemens Haselsteiner. “The state of affairs in particular person markets stays difficult, and there aren’t any indicators of a pattern reversal in residential building,” admitted the CEO.
Though the order backlog is secure in comparison with the identical interval final 12 months, it has reportedly elevated by 5 p.c in comparison with the top of December 2023. Strabag has thus “created a strong foundation for the remainder of the 12 months,” stated Haselsteiner.
Development big sticks to forecasts
In any case, the development big is sticking to its earlier outlook for the total 12 months 2024: Primarily based on the persistently excessive order backlog and the Group’s broad positioning, the Administration Board expects building output to stay “unchanged in the meanwhile” at EUR 19.4 billion (2023: EUR 19.1 billion). The EBIT margin is predicted to be “at the least 4 p.c”, up from 5 p.c not too long ago. Internet investments are additionally nonetheless forecast at “a most of EUR 750 million”.
In some European markets, the development business stays difficult. “Nonetheless, with the anticipated rate of interest cuts, the setting ought to steadily brighten from the second half of 2024,” defined Haselsteiner. Optimistic impulses are anticipated to return primarily from “forward-looking initiatives within the areas of vitality infrastructure and constructing in current buildings.”
Based on Strabag, within the first quarter of 2024, the most important will increase in building output in absolute phrases have been within the core markets of Germany, Poland and Romania. Alternatively, output decreased primarily in Austria – the rationale for that is the sharp decline within the residential building market on this nation.
A variety of new initiatives, resembling the development of a brand new transport lock in Kriegenbrunn (Germany), the extension of a high-speed rail line in Toronto (Canada) and the development of a bridge over the Oder close to Nędza (Poland), contributed to a slight nominal development within the order backlog within the first quarter of this 12 months.
Declines in Austria and the UK
Based on the corporate, orders developed finest in Germany, Poland and the Center East. Nonetheless, there have been declines in Austria and, on account of the completion of main initiatives, in the UK.
Within the first quarter, Strabag employed a median of 75,482 folks – 2 p.c greater than in the identical interval final 12 months. The biggest enhance was recorded in Germany on account of a takeover within the Property & Facility Providers division. In the UK and Romania, the workforce was elevated to a lesser extent to deal with initiatives.
