EQS-News: STRABAG SE / Key word(s): Half Year Results
STRABAG SE: order backlog exceeds € 25 billion for first time
30.08.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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STRABAG SE: order backlog exceeds € 25 billion for first time
• Slight output growth of 1%
• Order backlog up to € 25.2 billion (+7% vs. 31 December 2023)
• EBIT margin stable at 1.1% at the half-year mark, net income after
minorities up 23% to € 91.5 million
• Outlook for 2024 confirmed: output of around € 19.4 billion, EBIT
margin ≥ 4%
• Semi-Annual Report 2024 now also available fully online at
report.strabag.com
STRABAG SE 6M/2024 6M/2023 % 6M/2023–6M/2024
Output volume 8,329.29 8,258.62 1%
Order backlog 25,191.89 24,320.48 4%
Employees (FTE) 77,337 75,551 2%
NORTH + WEST 6M/2024 6M/2023 % 6M/2023–6M/2024
Output volume 3,589.32 3,628.35 -1%
Order backlog 12,035.28 10,529.54 14%
Employees (FTE) 22,050 21,787 1%
SOUTH + EAST^1) 6M/2024 6M/2023 % 6M/2023–6M/2024
Output volume 3,143.96 3,171.41 -1%
Order backlog 8,078.81 8,513.15 -5%
Employees (FTE) 26,159 26,310 -1%
INTERNATIONAL +
SPECIAL DIVISIONS^1) 6M/2024 6M/2023 % 6M/2023–6M/2024
Output volume 1,481.03 1,345.93 10%
Order backlog 5,053.19 5,197.35 -3%
Employees (FTE) 21,532 19,889 8%
OTHER 6M/2024 6M/2023 % 6M/2023–6M/2024
Output volume 114.98 112.93 2%
Order backlog 24.61 80.44 -69%
Employees (FTE) 7,596 7,565 0%
1) The construction materials business, previously reported as part of
International + Special Divisions, was integrated into the South + East
segment with retroactive effect from 1 January 2023. The previous year’s
figures have been adjusted accordingly.
STRABAG SE, the publicly listed European technology group for construction
services, today announced its figures for the first half of 2024. “A look
at the first half of the year reveals a continued challenging market
environment in certain European countries, especially in Austria. We can
compensate for these fluctuations at the corporate level, however,
allowing us to report another strong result. Of particular note is our
record order backlog of over € 25 billion, which offers us good visibility
towards 2026,” says Klemens Haselsteiner, CEO of STRABAG SE.
Output volume and revenue
STRABAG SE generated an output volume of € 8,329.29 million in the first
half of 2024, a slight plus of 1% compared to the same period of the
previous year. Output growth in the home market of Germany, in Poland and
in transportation infrastructures in Romania had a particularly positive
influence on this figure. Output fell substantially in Austria, on the
other hand, where the sharp decline in the residential construction market
is having an expected impact. Following the successful acquisition of
several large-scale projects, which are being realised under joint venture
arrangements, Group revenue fell by 3% in relation to output. This
development is also reflected in the revenue-to-output ratio, which fell
from 93% to 90% year-on-year.
Order backlog
The order backlog exceeded the € 25 billion mark for the first time at the
end of June 2024, reaching a total of € 25,191.89 million. This
corresponds to a year-on-year increase of 4%. Compared to the end of 2023,
the order backlog grew by 7%, reflecting the state of project acquisitions
in the year to date. “In line with our Strategy 2030, we acquired several
new projects related to the energy transition and the adaptive reuse of
existing buildings. These include the civil engineering works for the
European energy infrastructure project SuedOstLink and the refurbishment
of the main and regional offices of the pension insurance organisation in
Vienna. In addition, we were awarded contracts for major infrastructure
projects in Germany and Canada as well as in Central and Eastern European
countries,” says Klemens Haselsteiner, CEO of STRABAG SE.
The largest increases in absolute terms were recorded in Germany, Poland
and Slovakia. In contrast, the volume of orders is down in building
construction in Austria – here due primarily to the difficult situation in
residential construction – as well as in Hungary and the United Kingdom –
here as a result of the gradual completion of major projects.
Financial performance
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
increased slightly by 2% to € 358.87 million in the first half of 2024.
The depreciation and amortisation expense grew by 5% year-on-year to €
276.95 million. As a result, earnings before interest and taxes (EBIT)
were slightly lower at € 81.92 million (6M/2023: € 87.35 million). Despite
the slight decrease, however, the EBIT is still very much in line with the
multi-year comparison. While earnings improved in the segments North +
West and International + Special Divisions, losses in South + East
increased in the first half of the year.
Net interest income almost doubled year-on-year to € 52.23 million
(6M/2023: € 26.54 million). This development was mainly due to a
significant increase in interest income. STRABAG SE’s solid liquidity and
the prevailing interest rate environment had a positive effect. The net
interest income includes negative exchange rate differences of € -5.54
million (6M/2023: € -4.65 million). Earnings before taxes (EBT) therefore
came to € 134.15 million, compared to € 113.89 million in the previous
year. Income taxes amounted to € -41.11 million (6M/2023: € -37.28
million), which corresponds to a slightly lower income tax rate of 31%.
This resulted in net income of € 93.04 million, corresponding to a plus
21% over the first half of 2023.
The earnings attributable to minority shareholders remained almost
unchanged in absolute terms at € 1.53 million. Overall, net income after
minorities increased by 23% to € 91.51 million (6M/2023: € 74.14 million)
– the highest figure ever achieved by STRABAG SE in a first half-year
period. With a weighted number of 108,490,336 shares outstanding in the
first half of 2024, earnings per share amounted to € 0.84 (6M/2023: €
0.74).
Financial position and cash flows
The balance sheet total fell slightly to € 13.6 billion, a decrease of 1%
compared to the end of 2023. Due to seasonal effects, inventories and
contract assets increased, while cash and cash equivalents decreased in
the first half of 2024.
The final step in the capital measures to reduce the stake held by MKAO
“Rasperia Trading Limited” – the implementation of the ordinary non-cash
capital increase – was entered into the commercial register in March 2024.
As a result, the share capital of STRABAG SE increased from € 102.6
million to € 118.2 million. Due in particular to the dividend distribution
for the 2023 financial year, which took place in June 2024, the equity
ratio fell from a still high level of 32.2% at the end of 2023 to 31.2% at
the end of June.
STRABAG continues to report a net cash position. Compared to 31 December
2023, this figure fell, as is usual for the season, from € 2,643.24
million to € 1,619.08 million.
The cash flow from operating activities returned to negative territory at
€ -415.00 million (6M/2023: € 174.93 million), primarily due to the
increase in inventories and contract assets.
At € -322.49 million, the cash flow from investing activities was slightly
less negative than in the previous year (6M/2023: € -344.65 million).
Higher investments in intangible assets and in property, plant and
equipment were offset by higher inflows from asset disposals and slightly
lower outflows for enterprise acquisitions. The focus of the Group’s
investing activities was on acquisitions to further expand its expertise
in mechanical and electrical engineering services (M&E).
The cash flow from financing activities amounted to € -299.76 million in
the first half of 2024 (6M/2023: € -292.37 million). In addition to the
distribution of the dividend for the 2023 financial year, this figure also
includes the payment of the capital reduction to those free float
shareholders who opted for the cash alternative as part of the capital
measures and who have already submitted their book-entry securities in
this regard. The first half of 2023 included the payment for the
acquisition of own shares tendered as part of the mandatory offer made at
that time.
Employees
STRABAG had an average of 77,337 employees (FTE) in the first half of
2024, an increase of 2% compared to the same period of the previous year.
The largest increases were recorded in Germany and the Benelux region from
acquisitions in the property and facility services portfolio, specifically
in M&E and energy management.
Outlook for 2024
The Management Board continues to expect an output volume of around € 19.4
billion for the full year 2024, a target that is well supported by the
current state of the order backlog. The EBIT margin should again reach at
least 4%. Net investments (cash flow from investing activities) are also
forecast to reach a maximum of
€ 750 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 86,000 employees, we generate an annual output volume of
around € 19 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.
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30.08.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: STRABAG SE
Donau-City-Straße 9
1220 Vienna
Austria
Phone: +43 1 22422 – 1089
Fax: +43 1 22422 - 1177
E-mail: investor.relations@strabag.com
Internet: www.strabag.com
ISIN: AT000000STR1, AT0000A36HJ5
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1974995
End of News EQS News Service
1974995 30.08.2024 CET/CEST
