STRABAG SE Trading Statement 9M/2023: higher output forecast for 2023
| STRABAG SE / Key word(s): 9 Month figures |
16.11.2023 / 07:00 CET/CEST
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Output volume up 8% to € 13.6 billion in first nine months of 2023 Order backlog up 4% to € 24.4 billion Outlook raised for 2023: expected output volume of around € 18.9 billion; EBIT margin of ? 4%
1) Effective 1 January 2023, Switzerland was moved to the North + West segment, Poland to South + East. 2) The building materials business, previously reported in the International + Special Divisions segment, was incorporated into South + East effective 1 July 2023. The previous year’s figures have been adjusted accordingly.
The publicly listed European technology group for construction services STRABAG SE today announced its figures for the first nine months of 2023. “In view of the continued growth of the order backlog and the significant increase in output in the first nine months, we are raising our output forecast for 2023 from € 18.6 billion to around € 18.9 billion. Our performance so far this year has confirmed that our broad diversification – in both geographical terms as well as by sector – enables us to more than compensate for declines in individual construction segments. While residential construction remains under pressure in the current environment, we are seeing positive trends in public building construction and in commercial and industrial construction. Business development in transportation infrastructure construction remains solid,” explains Klemens Haselsteiner, CEO of STRABAG SE.
STRABAG SE generated an output volume of € 13.6 billion in the first nine months of 2023, which corresponds to an increase of 8% compared to the same period of the previous year. The largest output growth was recorded in the home markets of Germany and Austria, followed by Romania, Poland and the United Kingdom, where the Group is currently working on the two largest projects on the order books. By contrast, output fell in the Czech Republic, Sweden and Denmark.
As at 30 September 2023, the order backlog had increased to € 24.4 billion, up 4% from the same date in the previous year. The largest increases in absolute terms were achieved in the home market of Germany, particularly in building construction and civil engineering, as well as in Poland and the Middle East. In Austria, the order volume remains below the comparatively high level of the previous year, primarily due to the tense situation in residential construction. Declines were also recorded in the Americas region due to the ongoing execution of large-scale projects.
The average number of employees (FTE) in the first nine months of 2023 was 76,632. This corresponds to an increase of 4% compared to the same period of the previous year. The largest growth was recorded in Germany as a result of an acquisition in property and facility services, followed by the Americas region, where staff levels were increased to handle mining projects there. The changes in the other markets more or less balanced each other out.
Despite the continued challenging conditions, the Management Board expects a new record output volume of around € 18.9 billion for the 2023 financial year – the guidance at the end of the first half of the year had stood at € 18.6 billion. Output growth is expected in all operating segments. The goal of achieving an EBIT margin of at least 4% remains unchanged. Net capital expenditure (cash flow from investing activities) is not expected to exceed € 700 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 79,000 employees, we generate an annual output volume of around € 17 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.
16.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com
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