Half Year 2024 STRABAG SE Earnings Call Transcript
Key Points
- STRABAG SE (WBO:STR) reported the highest net income ever achieved in the first half of the year, driven by strong net interest income and a robust liquidity position.
- The company achieved a record order backlog exceeding EUR25 billion, providing good visibility towards 2026.
- There was a dynamic development in order intake, particularly in infrastructure, energy transition, and refurbishment projects across Europe and the Americas.
- The company's balance sheet and cash position remain very robust, with a healthy net cash position of EUR1.6 billion.
- STRABAG SE's strategy to become a general contractor for decarbonization is progressing, with acquisitions in MEP and energy management companies to support this goal.
- The residential construction market remains challenging, particularly in Austria and Germany, with no significant turnaround expected before 2025.
- EBIT was slightly lower than the previous year due to higher depreciation and amortization expenses.
- The output volume in Austria declined significantly due to stricter lending guidelines for mortgage loans and a lack of major industrial projects.
- The order backlog decreased in Austria, Hungary, and the UK, with ongoing completion of major projects in the UK contributing to the decline.
- Cash flow from operating activities returned to negative, primarily due to an increase in inventories and receivables.
Ladies and gentlemen, good morning from me as well. I will start on slide 5. Parts of the European construction industry remained challenging in the first half of the year, and this is especially true for Austria. By segment, we have not seen a turnaround in residential construction yet. In contrast, we are seeing continued solid demand for infrastructure and civil engineering projects across different geographies. In this environment, we can look back on a successful first half of 2024.
Even if the output volume has only increased slightly, we can report the highest figure ever recorded in the first six months of the year. We saw a dynamic development when it comes to the order intake where we were able to successfully acquire infrastructure energy transition and refurbishment projects, in particular in Europe and in the Americas region. The growth of our order backlog reflects this development. At the end of June, the backlog exceeded the EUR25 billion mark for the first time, a plus of 7% compared to the
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