STRABAG SE Posts Record Results
STRABAG’s financial results for 2024 reflect a combination of operational excellence and strategic investment. Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 16% to €1,644.18 million. The EBITDA margin rose significantly from 8.0% to 9.4%, showcasing improved profitability across the Group.
As part of the company’s Strategy 2030, STRABAG has increased its investment activity, which was reflected in a rise in depreciation and amortization expenses by 8%, reaching €582.29 million. Despite these higher costs, the company’s operational profitability remained robust.
Notably, earnings before interest and taxes (EBIT) broke the €1.0 billion threshold for the first time, reaching €1,061.89 million. The EBIT margin strengthened from 5.0% to 6.1%, well above expectations. Key drivers included positive earnings contributions from the North + West segment and fewer negative impacts from the typically volatile international project business.
Net interest income also saw considerable growth, jumping from €44.13 million to €75.42 million. The continued environment of elevated interest rates and STRABAG’s healthy net cash position helped fuel this significant increase.
Tax efficiency also improved during the year. The Group’s income tax rate dropped to 27.2%, much lower than in 2023. This improvement mainly stemmed from reduced tax shortfalls related to large-scale projects.
STRABAG’s bottom line reflects the overall strength of its performance. Net income climbed to €828.33 million, a year-on-year increase of 31%. Earnings attributable to minority shareholders rose to €5.33 million from €2.89 million, leaving net income after minority interests at €823.00 million — the highest figure since STRABAG SE’s establishment. Consequently, earnings per share improved to €7.35 compared to €6.30 in 2023.
Financial Position and Cash Flow: Solid Fundamentals and Strategic Investment
The Group’s total assets and liabilities grew by 7% year-on-year, reaching €14,674.58 million at the end of 2024. On the assets side, this increase was largely driven by higher inventories and a substantial boost in cash and cash equivalents. Additionally, STRABAG expanded its investment property holdings through the establishment of the STRABAG Hold Estate portfolio, a strategic move aimed at long-term management of real estate assets.
Equity strengthened significantly, topping the €5.0 billion mark for the first time at €5,000.37 million. The equity ratio improved from 32.2% to 34.1%, comfortably surpassing the company’s minimum target of 25%. This strong capital base supports STRABAG’s financial flexibility and future growth initiatives.
As of December 31, 2024, the Group maintained a net cash position of €2,905.25 million — a notable increase attributed to the rise in cash and cash equivalents during the year.
Operating cash flow, while slightly lower than the previous year, remained robust at €1,387.21 million (2023: €1,816.51 million). This figure is still at the upper end of STRABAG’s multi-year historical range. Cash flow from earnings increased compared to the previous year, while working capital remained largely stable after an unexpected reduction in 2023. Advance payments remained at high levels, providing a cushion for future operations.
Cash flow from investing activities, as expected, became more negative due to STRABAG’s accelerated investment strategy under Strategy 2030. Totaling €‑749.54 million (2023: €‑654.87 million), investments were channelled into expanding the Group’s real estate holdings, as well as property, plant, and equipment.
Meanwhile, cash flow from financing activities showed an improvement, recording a smaller outflow of €‑353.69 million compared to €‑430.58 million in the previous year. The prior year’s financing cash flow was heavily impacted by the buyback of shares during the anticipatory mandatory takeover offer by core Austrian shareholders. The absence of this one-off cash outflow in 2024 more than offset the higher dividend payout.
Outlook for 2025: Continued Growth and Strategic Execution
Looking ahead, STRABAG’s Management Board is optimistic about 2025. The Group expects a substantial increase in output volume to around €21 billion, driven by the strong order backlog and new contributions from recent acquisitions. Growth is anticipated across all operating segments: North + West, South + East, and International + Special Divisions.
While several favorable earnings factors boosted the 2024 EBIT margin, management expects the margin to normalize somewhat in 2025. Nevertheless, with the tangible benefits of Strategy 2030 beginning to materialize, the EBIT margin target for 2025 has been raised to ≥4.5%.
STRABAG’s focus remains on delivering sustainable growth, expanding its strategic real estate portfolio, and maintaining operational excellence across its core markets. With a record-breaking 2024 in the books and a healthy pipeline of projects ahead, the company is well-positioned for another successful year.
