PORR (POS) Q2 2026 earnings summary

Executive summary

• Civil engineering and infrastructure remain the main growth drivers, with building construction gaining momentum in residential, healthcare, and industrial sectors.

• Major new contracts secured in Germany and Poland, supporting a robust order backlog of EUR 9.8bn and high capacity utilisation for the next 18 months.

• Order backlog increased year-over-year, with double-digit growth in Austria, Switzerland, and Germany.

• Strong rebound in Q2 revenue after a harsh winter in Q1; EBIT rose 15.6% to EUR 56.3m, EBIT margin to 1.9%, and EPS up 34%.

• Several large new orders and a robust pipeline of high-margin projects expected, especially in Germany and Eastern Europe.

Financial highlights

• EBIT increased by 15.6% to EUR 56.3m; EBIT margin improved to 1.92%; EPS grew by 34% to EUR 0.71 per share.

• Revenue for HY 2026 reached EUR 2,925.3m, down 1.1% year-over-year, mainly due to a harsh winter and higher JV output.

• Equity ratio stable at 20%–21.1%, with equity up 10.8%–11% year-over-year.

• Net debt increased to EUR 460.6m, mainly from higher investments and delayed cash conversion; CapEx rose 40.7% to EUR 172.1m.

• Cash flow from operations at EUR -258m due to delayed billing and working capital build, expected to turn positive by year-end.

Outlook and guidance

• Output and revenue expected to rise 2%–4% year-over-year for 2026; EBIT margin guidance at 3.2%–3.3%, with a long-term target of 3.5%–4% by 2030.

• Strong order backlog and robust tender pipeline, especially in Germany, Poland, and Eastern Europe, support a positive outlook.

• Net debt free position targeted by year-end, including IFRS 16 liabilities.

• Risks include geopolitical tensions, energy prices, and economic uncertainty.