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:      [email protected]
   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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