Construction giant Strabag raked in an all-time high profit in 2024.
Strabag Soars Ahead Amid Mixed Economic Tides
Construction titan Strabag, Austria's largest in the field, has navigated the "mixed market environment" impressively, recording a significant 31% year-on-year increase in profits to a whopping 823 million euros in 2024. The financial juggernaut made the announcement on a lively Monday, with earnings per share ascending by 17% from 6.30 to 7.35 euros. Construction output held steady at 19.24 billion euros, marking a minuscule 1% growth. Revenue saw a small dip, shifting from 17.7 to 17.4 billion euros.
The KTM plant in Mattighofen remains steadfast, and you might be curious about the cost of a square meter on Sylt. Well, wonder no more! But remember, construction costs can fluctuate significantly based on location, project, and other factors. Notably, Bitcoin enthusiasts will be delighted to learn that a select Spar branch has embraced cryptocurrency.
New Strabag CEO Stefan Kratochwill expressed elation, stating, "In 2024, we've showcased our financial fortitude like never before - in a year where the infrastructure sector offered tailwinds, while the civil engineering sector endured headwinds." He further added, "This translates to nothing short of our best performance in our history to date." With an impressive order backlog boasting groundbreaking projects in infrastructure, energy, and high-tech production (like the semiconductor industry), the future looks bright.
A Balanced Portfolio for Success
EBITDA in 2024 amounted to 1.64 billion euros, a 16% surge compared to the previous year. The EBITDA margin soared from 8% to a robust 9.4%. Operating profit (EBIT) climbed by an impressive 21% to 1.06 billion euros, while the corresponding margin jumped from 5% to a noteworthy 6.1%. Strabag's success lies not only in its diverse construction segments, but also in its global reach, diverse customer base, and undertaking projects of various sizes.
Preparing for the Future
Strabag's order book skyrocketed by 8% in 2024 to an astounding 25.4 billion euros (compared to 23.5 billion euros in 2023). The workforce expanded from 77,136 to 78,174 full-time equivalents.
For the new fiscal year, 2025, the group anticipates construction output to reach approximately 21 billion euros and a moderated EBIT margin of at least 4.5%.
As we dive deeper into 2025, Strabag's track record indicates a resilient, financially sound entity ready to tackle whatever challenges this year may bring. An invigorating blend of consistent profits and ambitious plans bodes well for the company's future success!
- Strabag, the construction titan, achieved a remarkable 31% year-on-year increase in profits to 823 million euros in 2024, a testament to its financial fortitude in the mixed economic environment.
- The conglomerate's impressive order backlog for 2024 includes groundbreaking projects in infrastructure, energy, high-tech production like the semiconductor industry, and finance, promising a promising future.
- In 2025, Strabag anticipates construction output to reach approximately 21 billion euros, with a moderated EBIT margin of at least 4.5%, positioning the company to face the year's challenges with resilience.
- The success of Strabag lies in its diversified construction segments, global reach, diverse customer base, and projects of various sizes, demonstrating a balanced portfolio for enduring success.
