EQS-News: STRABAG SE: Higher net income despite declining markets in 2023

EQS-News: STRABAG SE / Key word(s): Annual Results
STRABAG SE: Higher net income despite declining markets in 2023

25.04.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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STRABAG SE: Higher net income despite declining markets in 2023

• New record output of € 19.1 billion (+8% vs. 2022)
• High order backlog largely unchanged at € 23.5 billion
• EBIT margin above expectations at 5.0% 
• Higher dividend of € 2.20 proposed 
• Outlook for 2024: output volume of around € 19.4 billion, EBIT margin
≥ 4%
• STRABAG publishes its first online Annual and Sustainability Report at
report.strabag.com

 

    2023 2022 %   6M/23 6M/22 %
Output volume € mn 19,139.14 17,735.47 8   8,258.62 7,587.72 9
Revenue € mn 17,666.54 17,025.85 4   7,684.37 7,246.35 6
Order backlog € mn 23,466.13 23,738.84 -1   24,320.48 23,969.66 1
EBITDA € mn 1,418.31 1,257.21 13   351.14 324.67 8
EBITDA margin % 8.0 7.4     4.6 4.5  
EBIT € mn 880.20 706.40 25   87.35 63.63 37
EBIT margin % 5.0 4.2     1.1 0.9  
Net income after € mn 630.51 472.45 33   74.14 40.41 83
min.
Earnings per € 6.30 4.60 37             0.74 0.39 90
share
Employees FTE 77,136 73,740 5   75,551 72,709 4

STRABAG SE, the publicly listed European technology group for construction
services, was faced with largely declining markets in 2023. Thanks to its
ability to cover the entire construction value chain and due to its broad
geographical presence, however, STRABAG can look back on a strong
performance in 2023.

Klemens Haselsteiner, CEO of STRABAG SE: “2023 was characterised by a
number of factors that are not supportive for construction. But STRABAG
held up extremely well even in this challenging environment, with earnings
that exceeded expectations. Our broad diversification allowed us to more
than offset declines in individual construction segments. At the same
time, we continued to work on progress in construction and are focusing
our strategy on the growth drivers of the future: sustainability and
innovation.”

Output volume, revenue and order backlog
The STRABAG SE Group increased its output volume by 8% to € 19,139.14
million in the 2023 financial year, setting a new record for this figure.
The consolidated Group revenue amounted to € 17,666.54 million. The
operating segments North + West contributed 41%, South + East 42% and
International + Special Divisions 17% to the revenue. Despite sharp
declines on the residential construction market, the order backlog
remained more or less stable at a very high level of € 23,466.13 million
(-1% compared to 31 December 2022).

Financial performance
The earnings before interest, taxes, depreciation and amortisation
(EBITDA) increased by 13% to € 1,418.31 million in 2023. In recent years,
the EBITDA has been sustainably established above the € 1.0 billion mark.
As a result, the EBITDA margin showed a year-on-year increase from 7.4% to
8.0%. The depreciation and amortisation expense fell slightly by 2.3% to €
538.12 million.

The earnings before interest and taxes (EBIT) increased significantly by
25% to € 880.20 million in 2023. The EBIT margin grew to 5.0% (2022:
4.2%), thus exceeding the original forecast. This development is due to
positive earnings effects resulting from the strong market positions in
the North + West segment.

The net interest income increased to € 44.13 million (2022: € 10.7
million). The strong year-on-year growth is primarily due to higher
interest income – caused by the higher interest rate level and STRABAG
SE’s net cash position. The exchange rate result included in this figure
turned negative in 2023 at € -15.90 million (2022: € 3.20 million) due to
negative exchange rate differences.

The income tax rate, at 31.5%, was slightly lower than in the previous
year. The net income amounted to € 633.39 million, which corresponds to an
increase of 32% compared to 2022. The earnings owed to minority
shareholders totalled € 2.89 million, compared to € 7.68 million in the
previous year. The net income after minorities increased by 33% to €
630.51 million, the highest figure in the history of STRABAG SE. The
earnings per share amounted to € 6.30 (2022: € 4.60).

Financial position and cash flows
The total of assets and liabilities increased year-on-year from €
12,683.76 million to € 13,706.21 million mainly due to the increase in
cash and cash equivalents and inventories. A decline was recorded in other
financial assets.

The equity as at 31 December 2023 was up to € 4,409.36 million, resulting
in an increase in the equity ratio to 32.2% (31 December 2022: 31.7%).
Another net cash position was reported for 31 December 2023 – with a
noticeable increase to € 2,643.24 million due primarily to higher cash and
cash equivalents and a further reduction in financial liabilities.

The cash flow from operating activities increased significantly
year-on-year from € 812.86 million to € 1,816.51 million. This development
is due to an increase in cash flow from earnings on the one hand and an
unexpected reduction in working capital on the other. The forecast
reduction in advance payments as a result of higher interest rates did not
materialise for the time being.

The cash flow from investing activities was more negative, as expected,
particularly due to higher investments in financial assets and enterprise
acquisitions, including acquisitions in facility services, energy and
building services management, and amounted to € -654.87 million (2022: €
-560.42 million). The cash flow from financing activities was less
negative at € -430.58 million (2022: € -503.66 million). The repayment of
a bond in the amount of € 200 million in the previous year resulted in an
effect that more than compensated for the acquisition of own shares
tendered as part of an anticipatory mandatory offer by the Austrian core
shareholders.

Outlook
Based on the continuing high order backlog, which already extends into
2025, the Management Board expects the output volume to increase slightly
from its already high level. Specifically, this figure is forecast to
reach around € 19.4 billion in the 2024 financial year. Due to the
economic challenges in the construction industry, the earnings for 2023 do
not change anything about the target of generating an EBIT margin of at
least 4% in the 2024 financial year.

“Buildings account for 38% of global CO[2] emissions. In order to achieve
the European climate targets, there is no way around the renovation and
decarbonisation of existing buildings. Reconstruction, conversion and
refurbishment is therefore firmly anchored in our strategy 2030,” explains
CEO Klemens Haselsteiner.

STRABAG SE’s Annual and Sustainability Report is available for the first
time as a complete online report at report.strabag.com.

STRABAG SE is a European-based technology partner for construction
services, a leader in innovation and financial strength. Our services span
all areas of the construction industry and cover the entire construction
value chain. We create added value for our clients by taking an end-to-end
view of construction over the entire life cycle – from planning and design
to construction, operation and facility management through to
redevelopment or demolition. In all of our work, we accept responsibility
for people and the environment: We are shaping the future of construction
and are making significant investments in our portfolio of more than 250
innovation and 400 sustainability projects. Through the hard work and
dedication of our approximately 86,000 employees, we generate an annual
output volume of around € 19 billion.

Our dense network of subsidiaries in various European countries and on
other continents extends our area of operation far beyond the borders of
Austria and Germany. Working together with strong partners, we are
pursuing a clear goal: to design, build and operate construction projects
in a way that protects the climate and conserves resources. More
information is available at www.strabag.com.

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25.04.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: STRABAG SE
Donau-City-Straße 9
1220 Vienna
Austria
Phone: +43 1 22422 – 1089
Fax: +43 1 22422 – 1177
E-mail: investor.relations@strabag.com
Internet: www.strabag.com
ISIN: AT000000STR1, AT0000A36HJ5
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1885979

 
End of News EQS News Service

1885979  25.04.2024 CET/CEST

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