Vienna - 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 consolidated Group revenue amounted to EUR 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 EUR 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 EUR 1,418.31 million in 2023. In recent years, the EBITDA has been sustainably established above the EUR 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 EUR 538.12 million.
The earnings before interest and taxes (EBIT) increased significantly by 25% to EUR 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 EUR 44.13 million (2022: EUR 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 income tax rate, at 31.5%, was slightly lower than in the previous year. The net income amounted to EUR 633.39 million, which corresponds to an increase of 32% compared to 2022. The earnings owed to minority shareholders totalled EUR 2.89 million, compared to EUR 7.68 million in the previous year.
Financial position and cash flows
The total of assets and liabilities increased year-on-year from EUR 12,683.76 million to EUR 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 EUR 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 EUR 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 EUR 812.86 million to EUR 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 EUR -654.87 million (2022: EUR -560.42 million). The cash flow from financing activities was less negative at EUR -430.58 million (2022: EUR -503.66 million). The repayment of a bond in the amount of EUR 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. 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 CO2 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.
Further details on the 2023 financial figures will be announced by STRABAG SE CEO Klemens Haselsteiner and CFO Christian Harder today, Thursday, at 10:00 a.m. during the financial press conference.
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 edevelopment 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 EUR 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.
Contact:
Marianne Jakl
Tel: +43 1 22422-1174
Email: marianne.jakl@strabag.com
STRABAG SE 
