"Strong performance"

Defying the crisis: Strabag with massive profit increase

Austria's largest construction group Strabag achieved a massive increase in profits in 2023 "in largely declining markets". Group earnings rose by a third to 630.5 million euros compared to the previous year and earnings before interest and taxes (EBIT) by a quarter to 880.2 million euros, as the company announced on Thursday.

The construction industry in general tended to be weak in the past year.

"Thanks to its coverage of the entire construction value chain and its broad geographical presence, Strabag can nevertheless look back on a strong performance in 2023," explained Group CEO Klemens Haselsteiner.

The profit distribution to shareholders is to be increased from EUR 2 to EUR 2.20 per share compared to the previous year. In 2022, Group profit fell by 19 percent to 472.5 euros.

Cautious outlook for the current financial year
The management's outlook for the current 2024 financial year is cautious: construction output is expected to grow only slightly from EUR 19.1 billion to EUR 19.4 billion. In 2023, it still climbed by 8 percent. Furthermore, an EBIT margin of 4 percent or more is targeted, compared to 5 percent recently.