STRABAG SE Trading Statement Q1/2023: New record order backlog as solid basis for 2023 and beyond

New record order backlog as solid basis for 2023 and beyond

• Double-digit output growth
• Order backlog increases further, for first time exceeds € 24 billion mark
• Outlook for 2023 confirmed: output volume of at least € 17.9 billion, EBIT margin ≥ 4%

 

STRABAG SE			3M/2023		3M/2022	%
Output volume			3,384.71		3,066.54	10%
Order backlog			24,510.68		23,726.16	3%
Employees (FTE)			73,747		71,167	4%
NORTH + WEST1)			3M/2023		3M/2022	%
Output volume			1,504.49		1,428.95	5%
Order backlog			10,601.18		10,937.96	-3%
Employees (FTE)			21,426		21,034	2%
SOUTH + EAST1)			3M/2023		3M/2022	%
Output volume			1,032.48		953.16	8%
Order backlog			8,280.47		7,816.98	6%
Employees (FTE)			22,403		23,215	-3%
INTERNATIONAL + SPECIAL DIVISIONS			3M/2023		3M/2022	%
Output volume			788.58		660.89	19%
Order backlog			5,534.43		4,964.51	11%
Employees (FTE)			22,325		19,902	12%
OTHER			3M/2023		3M/2022	%
Output volume			59.16		23.54	>100%
Order backlog			94.60		6.71	>100%
Employees (FTE)			7,593		7,016	8%

1)    Effective 1 January 2023, Switzerland was moved to the North + West segment, Poland to South + East. 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 quarter of 2023. “The new year got off to a successful start and we can report new record figures. We succeeded in further expanding our very high order backlog, topping the € 24 billion mark for the first time. That corresponds to 1.4 times our annual output volume. Despite the weaker state of the construction sector, we were thus able to establish a solid basis for 2023 and beyond, and we can confirm our outlook for the current year,” says Klemens Haselsteiner, CEO of STRABAG SE.

Output volume
The STRABAG SE Group generated an output volume of € 3.4 billion in the first quarter of 2023, a double-digit increase of 10% compared to Q1/2022, partly attributable to the inflationary environment. Output growth was recorded in all operating segments. The largest increases in absolute terms were achieved in the home markets of Germany and Austria, followed by the United Kingdom and Romania. The ongoing execution of the high order backlog and the mild weather for construction in the first quarter contributed to this development.

Order backlog
The significant increase in mortgage interest rates led to a noticeable shift from private to public contracts. The order books grew by a further 3% from the already high comparison value at the end of 2022 to reach a new record of € 24.5 billion. Germany, Romania and Italy, followed by Croatia and the Americas, contributed most to the order growth. Declines, on the other hand, were recorded in Bulgaria, Denmark and the Benelux countries.

Projects acquired in the first quarter of 2023 include the new construction of the Inspire Neukölln office and commercial complex in Berlin, planned and designed as a green building, as well as the construction of roads from Duqm Airport to Ras Markaz in Oman and the upgrade of National Road 94 in Poland.

Employees
The average number of employees in the first quarter of 2023 was 73,747 FTEs, 4% above the previous year’s figure. In Germany, the number of employees increased significantly as a result of an acquisition in property and facility services, while new mining projects in the Americas led to an increase in the number of employees in that region. The changes in the other markets more or less balanced each other out.

Outlook for 2023
High inflation and the continuing interest rate turnaround are having a dampening effect on the construction industry. Against this backdrop, the Management Board, based on the new record order backlog and the output growth in the first quarter, confirms its outlook for 2023: construction output of at least € 17.9 billion, with an EBIT margin of at least 4%. Net capital expenditure (cash flow from investing activities) is not expected to exceed € 600 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.