STRABAG SE
VSE:STR
STRABAG SE
Strabag SE, a titan in the European construction industry, has crafted a legacy by building beyond concrete. Dating back to its origins in 1835, Strabag has evolved into a diversified construction company, with its pieces firmly set across the continent and beyond. Headquartered in Vienna, Austria, this industry behemoth weaves a tapestry of infrastructure projects, ranging from cutting-edge civil engineering feats to meticulous building construction. Its core operations are underpinned by a strategic prowess that leverages a vast network of subsidiaries and affiliates, ensuring a footprint that spans more than 60 countries. Strabag thrives on large-scale projects like transportation infrastructures — highways, bridges, and tunnels — which showcase its dexterity in engineering ingenuity and project management.
At the heart of Strabag's economic engine lies a deep-rooted expertise in public-private partnerships (PPPs), a model fostering close collaboration with governments to deliver vital public infrastructure. Through strategic planning and execution, the company navigates complex regulatory environments and balances financial rigor with sustainable practices, making it a favored partner for diverse stakeholders. Its revenue streams are multifaceted, drawing from building construction, civil engineering, and services like facility management and real estate development. This diversification is complemented by a commitment to innovation, illustrated by investments in digital solutions and environmentally friendly construction techniques. Thus, Strabag stands as a testament to building not just in the physical sense, but in fostering enduring economic, social, and environmental impacts wherever it operates.
Strabag SE, a titan in the European construction industry, has crafted a legacy by building beyond concrete. Dating back to its origins in 1835, Strabag has evolved into a diversified construction company, with its pieces firmly set across the continent and beyond. Headquartered in Vienna, Austria, this industry behemoth weaves a tapestry of infrastructure projects, ranging from cutting-edge civil engineering feats to meticulous building construction. Its core operations are underpinned by a strategic prowess that leverages a vast network of subsidiaries and affiliates, ensuring a footprint that spans more than 60 countries. Strabag thrives on large-scale projects like transportation infrastructures — highways, bridges, and tunnels — which showcase its dexterity in engineering ingenuity and project management.
At the heart of Strabag's economic engine lies a deep-rooted expertise in public-private partnerships (PPPs), a model fostering close collaboration with governments to deliver vital public infrastructure. Through strategic planning and execution, the company navigates complex regulatory environments and balances financial rigor with sustainable practices, making it a favored partner for diverse stakeholders. Its revenue streams are multifaceted, drawing from building construction, civil engineering, and services like facility management and real estate development. This diversification is complemented by a commitment to innovation, illustrated by investments in digital solutions and environmentally friendly construction techniques. Thus, Strabag stands as a testament to building not just in the physical sense, but in fostering enduring economic, social, and environmental impacts wherever it operates.
Output Volume: STRABAG reported Q1 output of EUR 2.6 billion, up 7%, mainly driven by strong performance in the German Transportation Infrastructure business.
Record Order Backlog: Order backlog rose 10% to over EUR 17.6 billion, a new company high, with strong contributions from Hungary, Poland, and Germany.
Earnings: EBITDA improved slightly to minus EUR 50 million (up 2%), while EBIT was minus EUR 139 million, a 3% year-on-year improvement.
Stable Net Income: Net income after minorities was minus EUR 116.7 million, unchanged from Q1 2017; EPS also unchanged at EUR 1.14 per share.
Full-Year Guidance Confirmed: Management reaffirmed guidance for 2018: output volume of around EUR 15 billion and at least 3% EBIT margin.
Input Costs & Margins: Rising input and labor costs are pressuring margins, with wage increases particularly notable in Germany.
Facility Management Transition: The ISS contract for Deutsche Telekom will reduce Facility Management revenues starting mid-2019, but management expects to offset this loss at the group level.
Alto Maipo Project: No further negative impact expected; future provision releases depend on project progress.
