Strabag Lifts 2023 Volume Outlook After Net Profit Increase

By Andrea Figueras

Strabag on Thursday raised its 2023 production guidance on the back of increased output volume and a jump in net profit in the first half.

The Austrian construction company now expects an output volume of around 18.6 billion euros ($20.32 billion), up from a previous forecast of at least EUR17.9 billion. As for the earnings before interest and taxes margin, the company continues to aim to reach at least 4%.

For the first half, Strabag posted net profit of EUR76.6 million, up from EUR43.8 million in the first half of last year. Revenue grew 6% to EUR7.68 billion.

EBIT increased to EUR87.35 million from EUR63.63 million.

"The ongoing execution of the high order backlog contributed positively to the significant increase in output volume, in part supported by the inflationary environment," it said.

The output volume reached EUR8.26 billion, compared with EUR7.59 billion, while the order backlog rose 1% to EUR24.32 billion.

Orders fell 5% in Austria following higher mortgage interest rates and the lending guidelines for residential construction loans in the country, but were higher in Germany, Romania, Croatia, Italy and Poland, the company said. Orders declined in the Americas region and in the U.K. due to the completion of large projects, it said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

August 31, 2023 04:16 ET (08:16 GMT)

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