STRABAG SE: New record for output volume, continued high order backlog

STRABAG SE: New record for output volume, continued high order backlog

•   Output volume reaches new record level of € 17.7 billion (+10%)
•   Order backlog up 6% to € 23.7 billion
•   Outlook for 2023: output volume expected at the level from 2022, EBIT margin sustainably at ≥4%
 

STRABAG SE			2022		2021		% 2021–2022
Output volume			17,735.47		16,128.92		10 %
Order backlog			23,738.84		22,500.85		6 %
Employees			73,740		73,606		0 %
NORTH + WEST			2022		2021		% 2021–2022
Output volume			8,690.69		7,902.46		10 %
Order backlog			11,841.89		11,628.13		2 %
Employees			25,693		25,430		1 %
SOUTH + EAST			2022		2021		% 2021–2022
Output volume			5,461.54		4,930.38		11 %
Order backlog			6,320.72		5,596.97		13 %
Employees			20,625		20,685		0 %
INTERNATIONAL + SPECIAL DIVISIONS			2022		2021		% 2021–2022
Output volume			3,445.12		3,161.46		9 %
Order backlog			5,556.81		5,268.22		5 %
Employees			20,405		20,610		-1 %
OTHER			2022		2021		% 2021–2022
Output volume			138.12		134.62		3 %
Order backlog			19.42		7.53		>100 %
Employees			7,017		6,881		2 %

STRABAG SE, the publicly listed European technology group for construction services, today announced its first figures for the 2022 financial year and an outlook for 2023. “Despite the very challenging environment in 2022, we were able to achieve a new record output volume and close the year with a very comfortable order backlog of € 23.7 billion, thereby demonstrating the resilience of our diversified business model. While the interest rate turnaround is having a negative impact on the construction business – even more so than material and energy prices – we are coming out of an unusual zero interest rate policy phase and a related boom in construction; the development of the construction industry can thus be described as a normalisation rather than a crisis. For 2023, we do not expect any major setbacks for the STRABAG Group, although we are already noticing a shift towards more public-sector projects in our order backlog,” says Klemens Haselsteiner, CEO of STRABAG SE.

Output volume
The STRABAG SE Group recorded a 10% increase in its output volume to € 17,735.47 million in the 2022 financial year, surpassing the previous record set in 2019. The increase in output was achieved across all operating segments. The largest increase in absolute terms was registered in our home market of Germany, followed by Austria and the United Kingdom, where we are currently completing the two largest projects in our order books, as well as the Czech Republic. On the other hand, moderate declines in output were reported in the Benelux countries as well as in Denmark, Poland and Slovenia.

Order backlog
Despite rising construction costs and the accelerated interest rate turnaround, the order backlog as at 31 December 2022 increased by 6% year-on-year to € 23,738.84 million, which is only slightly below the previous record level from the end of the first six months of 2022. Projects were successfully acquired in our home markets of Germany and Austria in particular, but also in Romania, Italy and Croatia. The order backlog declined in Bulgaria, Denmark and the Middle East.

The additions to the order books in Germany and Austria include the Grünblick sustainable housing project with 340 units in Vienna, the construction of the headquarters of Volksbank Raiffeisenbank Bayern Mitte in Ingolstadt and the upgrade of the Berlin-Köpenick railway station. The company was also awarded a contract in Croatia for the modernisation of the railway line between Zagreb and Rijeka and, in Romania, for the expansion of the A3 motorway over a length of 15.7 km. Contracts worth around € 283 million were acquired in Chile, enabling STRABAG to further expand its strong market position in the mining business in the region.

Employees
The number of employees remained nearly unchanged at the Group level in 2022. The average number of employees for the year was 73,740 FTE (+0.2% compared to 2021). In line with the higher output, increases were recorded in Germany and the UK, among other places, which more than offset the slight decreases in the Americas and in Poland.

Outlook for 2023
The Management Board expects to be able to maintain the output volume at a high level in 2023 despite the challenging environment; specifically, the forecast is for € 17.9 billion. All three operating segments should make a stable contribution to this amount.

After the exceptionally high EBIT margin (EBIT/revenue) in the 2021 financial year, a normalisation is expected for both 2022 and 2023, in line with the long-term strategic goal of generating at least 4% on a sustainable basis from 2022.

Net investments (cash flow from investing activities) in 2023 will likely not exceed € 600 million.

Additional figures and details about the 2022 financial year will be available from 7:00 a.m. (CEST) on 27 April 2023 at www.strabag.com.