Strabag (STR) H2 2025 earnings summary

Executive summary

• Achieved record output of €20.4 billion in 2025, up 6% year-over-year, surpassing €20 billion for the first time, with order backlog expanding 24% to €31.4 billion, providing visibility until 2028.

• EBIT margin reached a record 6.7%, supported by major project wins in energy, water, mobility, and high-tech sectors, with net income after minorities up 11% to €960 million and EPS at €7.94.

• Proposed dividend of €2.90 per share, up from €2.50, reflecting a decade of 13% average annual dividend growth and a 16% year-over-year increase.

• Successfully navigated market challenges in Germany and Austria, offsetting weak residential construction with strong infrastructure and high-tech demand.

• Strategy 2030 advanced with market entry into Australia and expansion in water infrastructure and affordable housing.

Financial highlights

• Output volume rose 6% year-on-year to €20.4 billion, with half the increase from the Australian acquisition; order backlog reached €31.4 billion, up 24% year-on-year.

• EBITDA increased 15% to €1.88 billion, with margin rising to 10.1% from 9.4%; EBIT up 17% to €1.25 billion, margin at 6.7%.

• Net income after minorities was €960 million, up 11% year-on-year; EPS at €7.94.

• Net cash position at €3.52 billion; equity ratio at a record 35.9%.

• Cash flow from operating activities rose to €1.8 billion; investing activities at €-813 million due to acquisition timing.

Outlook and guidance

• Output volume for 2026 expected at €22 billion (+8%), supported by backlog and acquisitions, with EBIT margin guidance for 2026 at 5%–5.5%.

• Net investments for 2026 projected at no more than €1.4 billion, including €600 million maintenance CapEx and €800 million growth CapEx.

• Dividend policy targets 30%-50% of net income; proposed 2026 dividend: €2.90 per share.

• Positive momentum expected from infrastructure investments in Germany, CEE, UK, and Australia.

• Resilient business model with active management of energy/material price risks and secure supply contracts.