Strabag (STR) H1 2024 earnings summary

Executive summary

• Output volume stable at €8.3bn in H1 2024, with growth in Germany and Poland offsetting declines in Austria due to a weak residential market.

• Order backlog reached a record €25.2bn, up 4% year-over-year, driven by major project wins in energy and infrastructure.

• EBIT margin held steady at 1.1%, while net income after minorities rose 23% to €91.5m, the highest H1 result to date.

• Strategic focus on energy transition, decarbonisation, and M&E services, supported by targeted acquisitions.

• 2024 outlook confirmed: output of ~€19.4bn and EBIT margin of at least 4%.

Financial highlights

• Revenue declined 3% year-over-year to €7.46bn, while EBITDA increased 2% to €358.9m.

• EBIT fell 6% to €81.9m, but EBT rose 18% to €134.1m due to higher net interest income.

• Net income grew 21% to €93.0m; EPS up 14% to €0.84.

• Equity ratio at 31.2% (down from 32.2% at year-end 2023); net cash position decreased seasonally to €1.62bn.

• Cash flow from operating activities was negative at €-415m, mainly due to higher inventories and contract assets.

Outlook and guidance

• Management expects full-year 2024 output of ~€19.4bn and EBIT margin of at least 4%.

• Net investments (cash flow from investing activities) forecasted to reach a maximum of €750m.