Budimex builder expects revenue growth in coming years; this requires long-term strategy

"We need to adjust our structure to the value of the portfolio this year. We had PLN 7-9 billion of annual revenues, and in the following years our revenues will reach about PLN 12 billion - I am talking about the long-term trend (...). We are focusing on the longer term. This will require the preparation of a long-term strategy," CEO Artur Popko said during a meeting with journalists.

"We estimate revenues in 2024 at over PLN 9 billion, so lower year on year, but this is because the signing of railway contracts has been delayed. We expect an increase in revenue this year," he added.

For Q4 2024, Budimex estimates consolidated net profit at PLN 172 million (EUR 40.4 mln), down 40 percent year on year, revenue at PLN 2.6 billion (EUR 609.9 mln) and operating profit at PLN 235 million (EUR 55.1 mln).

Consolidated revenues in 2024 are estimated at PLN 9.1 billion (EUR 2.1 bln) and operating profit at PLN 744 million (EUR 174.5 mln).

For the full year 2024, operating profit margin has increased, reaching an estimated 8.2 percent (8.0 percent in the previous year).

At the end of 2024, the backlog reached a record value of nearly PLN 17.8 billion (EUR 4.2 bln), compared to PLN 13.1 billion (EUR 3.1 bln) at the end of 2023, which secures the work front for most of 2025 and provides the group with the foundations of operations for the next three to four years.

"We have ended the last few years with a portfolio of PLN 10-13 billion, and this year 2024 is a portfolio of PLN 18 billion. And this portfolio does not include the Rail Baltica contract. (...) This is a very satisfying result for us, also because a significant part of the contracts are long-term contracts (...). It is gratifying that most of the contracts signed are new contracts, covered by the valorisation clause," Popko said.

"The portfolio gives stability, work for years to come - we don't need to take an aggressive approach to bidding," he added.

Budimex assumes further development on foreign markets, but views the situation in Poland optimistically.

"As Poland, we are the largest construction site in Europe. Poland is a magnet that attracts companies from different countries - this is a bit of a challenge for us. (...) From a ten-year perspective, there will be a lot of work," he said.

doa/ nl/