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Investing.com -- Strabag SE (VIE:STRV) on Thursday reported a 58% increase in operating profit in the first half of 2025 as the Austrian construction company expanded internationally and booked record-high orders.
Earnings before interest and taxes rose to €129.4 million, compared with €81.9 million a year earlier.
The improvement was supported by stronger results in the North and West Europe segment and a sharp rise in International and Special Divisions.
The South and East region continued to post negative earnings due to the high share of transportation infrastructure projects.
Output climbed 7% year-over-year to €8.9 billion, while consolidated revenue increased at the same pace.
The company said about half of the output growth stemmed from the consolidation of the Georgiou Group in Australia.
The largest gains in established markets came from Poland, the Czech Republic and Germany. Output fell in the United Kingdom and Hungary, where public investment has stalled.
The order backlog reached €28.4 billion at the end of June, up 13% from the prior year.
Growth came mainly from projects in railway construction, energy infrastructure, high-tech buildings and research facilities.
Germany, the Czech Republic and Austria recorded the biggest regional increases, while Australia contributed about €660 million following the Georgiou acquisition.
Net income rose to €97.1 million from €93 million in the first half of 2024. Earnings per share stood at €0.82, nearly unchanged from €0.84 a year earlier.
Net interest income was positive at €15.4 million but below the prior year’s €52.2 million due to lower deposit interest rates. Exchange rate differences weighed on results with negative €13 million compared with negative €5.5 million in 2024.
Total assets increased slightly to €14.9 billion. The equity ratio declined to 32.4% from 34.1% at the end of 2024, reflecting dividend payments. Net cash stood at €1.9 billion, compared with €2.9 billion at year-end.
Operating cash flow was negative €284.4 million, an improvement from negative €415 million last year. Investment cash flow widened to negative €430.3 million, driven by acquisitions and spending on property, plant and equipment.
Financing cash flow improved to negative €261.8 million from negative €299.8 million, as the prior year included payments related to capital reduction measures.
The company employed an average of 79,159 people in the first half, up 2% from the previous year. Staffing increased in Poland, the Middle East and Germany, while numbers declined in the Americas as large projects progressed.
Strabag reaffirmed its full-year outlook for 2025, targeting output of around €21 billion and an EBIT margin of at least 4.5%. Net investments are projected at no more than €1.4 billion.