Post by Satt Singh Basra

STRABAG eyes Iran war price rises as it posts record results for 2025 Austria-based construction group #Strabag has hailed a record set of results in 2025, even as it warned that price increase linked to the Iran war could affect business in 2026. Revenue rose to €18.14 billion in 2025, up from €17.42 billion in 2024. The group separately reported output volume (reflecting production completed during the year) of €20.42 billion, up 6% year-on-year. Its order backlog for the end of the year reached a record €31.37 billion, an increase of 24% compared with 2024. The company said the acquisition of Australia’s Georgiou Group helped to drive growth, while established markets including #Poland, the #CzechRepublic and #Germany delivered strong gains. The company said demand remained robust in #transport, #water, #energy and #digital #infrastructure. During the year it secured rail contracts worth €1.3 billion in its European core markets, additional power #transmission work in Germany, a major water infrastructure project in the UK, and high-tech industrial projects including a semiconductor scheme and the first phase of the IPAI #artificialintelligence campus in Germany. But in the UK activity declined as portions of major projects were deferred into subsequent years. Meanwhile, #Strabag said its EBIT margin for 2025 was at least 6.5%, above the 6.1% achieved in 2024 and ahead of its earlier guidance, helped by positive effects from major projects in Germany and international markets, as well as mild weather conditions late in the year. Looking ahead, the group expects output volume to increase to around €22 billion in 2026. It forecast an EBIT margin of between 5% and 5.5%, indicating a more cautious profitability outlook despite continued growth. The company also added that it was observing price increases on certain inputs like fuel, gas, and bitumen. The impact of those price rises will depend largely on the duration of the conflict, it said. “Strabag uses various contract models and applies price escalation clauses wherever possible. In principle, Strabag pursues a locally focused, long-term procurement policy with longer-term framework agreements. The resilience of the business model has already been demonstrated during the Covid-19 pandemic, which was likewise characterised by significant price increases,” it added. #CEO Stefan Kratochwill said, “In 2025, we consistently worked on implementing our Strategy 2030. With our market entry into Australia, the expansion of our water infrastructure business and solutions for affordable housing, we succeeded in taking decisive steps. At the same time, we delivered a strong operating result. Strategy-aligned growth and further progress in profitability enabled us to reach new record levels in output, order backlog and EBIT margin.” https://lnkd.in/d9MbcMHg