Strabag Increases Production Guidance for 2023

Vienna, Austria - Construction company Strabag has recently revised its production guidance for the year 2023, citing increased output volume and a significant jump in net profit for the first half of the year.

Higher Output Volume Expected

Strabag now anticipates an output volume of approximately €18.6 billion ($20.32 billion), surpassing its previous forecast of at least €17.9 billion. The company also remains focused on achieving an earnings before interest and taxes margin of no less than 4%.

Impressive Financial Performance

During the first half of the year, Strabag recorded a net profit of €76.6 million, compared to €43.8 million in the same period last year. Additionally, the company's revenue experienced a 6% growth, reaching €7.68 billion. EBIT rose from €63.63 million to €87.35 million.

Factors Contributing to Success

According to a company statement, the successful execution of projects from its high order backlog played a significant role in driving up the output volume. Strabag also acknowledged that the inflationary environment provided additional support.

Key Figures

• Output volume: €8.26 billion (compared to €7.59 billion)
• Order backlog: €24.32 billion (1% increase)

Market Insights

While orders in Austria declined by 5%, primarily due to higher mortgage interest rates and loan guidelines for residential construction, Germany, Romania, Croatia, Italy, and Poland reported higher order numbers. Strabag noted a decrease in orders in the Americas and the U.K., attributed to the completion of large projects.