Image: APA/STRABAG
The listed construction company Strabag increased its construction output by eight percent in 2023 to a record level of 19.1 billion euros. The largest increases occurred in Germany and Romania as well as in road construction in Poland, while declines occurred in the Czech Republic, Sweden and Denmark Strabag announced on Thursday. The order backlog fell by one percent to 23.5 billion euros, the number of employees increased by five percent to 77,136.
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“After years of boom due to the zero and negative interest rate policy, 2023 was marked by a slowdown in the construction industry,” says CEO Klemens Haselsteiner. “Residential construction was particularly hard hit by the changed environment Strabag However, it accounts for less than ten percent of the group’s output.” Thanks to its size and broad positioning by country and construction sector, the Strabag can increase their construction output to more than 19 billion euros for the first time and maintain the very high order backlog.
Weaker in Austria
The order backlog was expanded, among others, in Germany, especially in building construction and civil engineering, as well as in Poland and the Middle East. In Austria it remained below the previous year’s level, which is what the Strabag attributed to the high level of interest rates and stricter lending guidelines for mortgage loans compared to other European countries. Major projects have been completed in the United Kingdom and the Americas region, which is why the order backlog there has also declined. A takeover in the Property & Facility Services division in Germany also contributed to the increase in employment.
An EBIT margin of close to five percent (2022: 4.2 percent) is expected for the 2023 financial year, which will therefore be higher than originally forecast. This year, Haselsteiner expects to be able to increase construction output again to 19.4 billion euros. The order backlog already extends into 2025. The EBIT margin should reach at least four percent in 2024.
The construction group will publish further figures and details about the 2023 financial year on April 25th.
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