Strabag’s order backlog passes €24 billion mark for first time

Strabag’s head office in Vienna. (Photo: Strabag.)

Strabag’s order backlog has passed the €24 billion (US$25.6 billion) mark for the first time.

The news came as the Austria-based construction contractor unveiled its trading statement for the first quarter of 2023.

The business saw a 10% increase in revenue for the period to €3.38 billion, up from €3.07 billion in the same period a year before.

The largest increased came in the company’s home markers of Germany and Austria, followed by the United Kingdom and Romania. Strabag attributed the increase to its high order backlog and mild weather for construction, which has allowed projects to progress.

Meanwhile, a significant increased in mortgage interest rates means that Strabag has seen a “noticeable shift” from private to public contracts in its order backlog.

Orders were up 3% on the already high level at the end of 2022, to reach €24.5 billion. Germany, Romania, and Italy contributed most to the order growth, followed by Croatia and the Americas.

But the company also saw declines in Bulgaria, Denmark and the Benelux countries.

The business employs more than 73,000 people worldwide, with a significant increase in Germany thanks to an acquisition in property and facility services, while new mining projects in the Americas lead to an increase in the number of employees in that region.

Strabag said its outlook for 2023 was a construction output of at least €17.9 billion and an earnings before interest and taxation (EBIT) margin of at least 4%.