STRABAG SE Trading Statement Q1/2022: Double-digit growth in output volume and order backlog
31 May 2022
- Output volume up by 12 % to € 3.1 billion compared to Q1/2021
- Order backlog up 18 % to € 23.7 billion, another record level
- 2022 outlook: due to the high order backlog, output volume should achieve record level of 2019, EBIT margin expected to reach at least 4 % on a sustained basis
| STRABAG SE | 3M/2022 |
3M/2021 |
in % |
|---|---|---|---|
| Output volume | 3,066.54 |
2,735.27 |
12% |
| Order backlog | 23,726.16 |
20,051.37 |
18% |
| Employees | 71,167 |
71,292 |
0% |
| North + West | 3M/2022 |
3M/2021 |
in % |
|---|---|---|---|
| Output volume | 1,530.62 |
1,354.62 |
13% |
| Order backlog | 12,482.65 |
9,987.05 |
25% |
| Employees | 25,072 |
25,065 |
0% |
| South + East | 3M/2022 |
3M/2021 |
in % |
|---|---|---|---|
| Output volume | 851.49 |
754.28 |
13% |
| Order backlog | 6,272.29 |
5,148.15 |
22% |
| Employees | 19,177 |
18,762 |
2% |
| International + special divisions | 3M/2022 |
3M/2021 |
in % |
|---|---|---|---|
| Output volume | 660.89 |
599.97 |
10% |
| Order backlog | 4,964.51 |
4,906.32 |
1% |
| Employees | 19,902 |
20,607 |
-3% |
| Other | 3M/2022 |
3M/2021 |
in % |
|---|---|---|---|
| Output volume | 23.54 |
26.40 |
-11% |
| Order backlog | 6.71 |
9.85 |
-32% |
| Employees | 7,016 |
6,858 |
2% |
The publicly listed European technology group for construction services STRABAG SE today announced its figures for the first quarter of 2022. “The high order backlog provides a solid basis for the outlook on the output for the full year. Given the current situation, we are confident of achieving our target of generating a sustained 4 % EBIT margin from 2022 onwards, despite the price dynamics. Nevertheless, it is of course important to closely monitor and continuously assess supply chain and price risks,” says Thomas Birtel, CEO of STRABAG SE.
Output volume
The output volume of the STRABAG SE Group grew by 12 % to € 3.1 billion in the first quarter of 2022, largely due to the more favourable weather for construction compared to the same quarter of the previous year. By far the largest contribution to the output was achieved in the home market of Germany, followed by the Czech Republic, Austria and the United Kingdom, where the two largest projects in the order book are currently being executed. With the exception of Denmark and the Benelux countries, which saw a decline in the output volume, there were no significant changes compared to the same period last year.
Order backlog
The order backlog reached a new record level of € 23.7 billion (+18 % compared to 31 March 2021). Here, too, Germany contributed the most to the growth of the order backlog in absolute terms, with an increase of 26 %, followed by Austria (+21 %) and Poland (+35 %). The Czech Republic (+23 %), the Americas (+36 %) and Hungary (+33 %) also recorded significant growth. In contrast, the order backlog declined in the United Kingdom, as well as in the Benelux countries and Denmark. Projects acquired in the first quarter of 2022 include the expansion of the S19 expressway in Poland, the Grünblick in Viertel Zwei residential project in Vienna, Austria, and the construction of the corporate headquarters of Volksbank Raiffeisenbank Bayern Mitte in Ingolstadt, Germany.
Employees
In terms of employee numbers, there was a shift from the Americas region – where staff levels were reduced due to the completion of a major tunnelling project – to the core markets of Europe. Due to the increased output volume and the higher order backlog, the number of employees grew especially in the home market of Germany and in the United Kingdom. In total, the number of employees remained almost unchanged from the previous year at 71,167.
Outlook
In view of Russia’s war against Ukraine, which began in the first quarter, any forecast is still subject to uncertainties and risks. Based on the recent record order backlog and an output volume in the first quarter of 2022 that is roughly the same as in the first quarter of 2019, the Management Board is maintaining its target for a construction output of € 16.6 billion for 2022 for the time being. The board also expects to generate an EBIT margin of at least 4 % on a sustained basis. Net investment (cash flow from investing activities) is not expected to exceed € 550 million.
