Erbud (ERB) Q1 2025 earnings summary

Executive summary

• Revenue rose 14% year-over-year to PLN 733.1 million, driven by growth in residential construction and industrial services.

• Backlog for external customers increased 4% year-over-year to PLN 2.93 billion, with total backlog at PLN 3.89 billion.

• Contracts worth over PLN 1 billion were acquired in Q1 2025, including significant military and healthcare projects.

• The Group operates mainly in construction, industrial, renewable energy, and modular segments across Poland and EU countries.

• Cash position remains strong at PLN 206 million, with net debt at a comfortable level.

Financial highlights

• Sales revenue increased to PLN 733.1 million from PLN 644.3 million year-over-year.

• Net loss for Q1 2025 was PLN 15.6 million, with a loss attributable to parent shareholders of PLN 13.2 million.

• EBITDA fell to PLN 3.3 million, mainly due to seasonality and a strong prior-year base from RES project sales.

• Gross margin on sales was 5.0%, down from 6.6% in Q1 2024.

• Cash and cash equivalents decreased to PLN 198.3 million from PLN 300.3 million at year-end 2024.

Outlook and guidance

• Forecasts indicate increased public procurement and a rebound in the housing market, supported by interest rate reductions.

• The government plans to allocate up to PLN 45 billion to social and municipal housing by 2030.

• High investment activity expected in the RES sector, with major energy companies planning significant expenditures.

• Management sees a more stable environment in 2025, with reduced but ongoing impacts from the Ukraine conflict.

• The Group continues to diversify geographically and by segment to mitigate risks.