Positive half-year financial results for Strabag

Austrian construction company Strabag SE has released details of its half-yearly financial results for 2022, which show an increase in production as well as a record order book of 23.9 million euros.

Headquarters of Strabag in Vienna. (Photo: Strabag.)

On the strength of its highest revenue in its history last year, the company recorded a production volume of 7.5 million euros, an increase of 9% compared to 2021.

The entrepreneur also recorded a positive performance in the neighboring country, Germany, which saw its order book increase by 2 billion euros.

A balance sheet total of 12.3 billion euros remained stable according to Strabag, while its net cash increased from 1.9 million euros to 1.1 million euros.

Despite continued growth and its second-best half-year result, the Vienna-based company’s EBITDA (€324.6m) and EBIT (€63.6m) profits both declined compared to 2021. .

However, the company’s CEO, Thomas Birtel, says he expected that to be the case: “The outlook may be fraught with uncertainty at the moment, but our half-year figures show we are on track.

“Production increased as expected and the order book also shows an upward trend, despite its already high level.

“As expected, we were not able to repeat the outstanding result of the previous year. In a long-term comparison, however, one can speak of the second best figure for a first half.

Cash flow from operating activities also recorded negative revenue at -606 million euros, but the company claimed that this was due to an increase in inventory and contract assets as well as the purchase of a property in Stuttgart.

Net income for 2022 so far reached 43.7 million euros, while its net interest income was also positive at 6.2 million euros. Pre-tax income amounted to 69.8 million euros.

Strabag, which recently won a €226m contract to upgrade 44km of railway lines in Croatia, said it “remains committed to the €16.6bn construction target for 2022”.

Mary I. Bruner