Budimex builder sees price pressure on rail market, but assesses it as promising area

"The situation in the rail segment is improving. (...) The rail market is still different from the road market in it's financing mechanism (...), but we are optimistic in the medium and long term because it is the most promising area," management board member Maciej Olek told the conference.

"Rail infrastructure operator PKP PLK and Poland's central transportation hub CPK's outlays for construction and modernisation of rail lines will be very high. We are rebuilding our order backlog, and we have stable work for this year and the next," he added.

Olek underlined the problem of price pressure.

"After years poor in new contracts, there is very high price pressure in the market, with competitors making offers at very low levels, but we are not taking part in this price war," he said.

Management board member Cezary Lysenko said that in 2025 Poland's road authority GDDKiA plans to announce tenders with a total value of PLN 14 billion (EUR 3.27 bln).

"The GDDKiA has confirmed that it will be continuing its national roads and motorways programme. Expenditures are seen cumulating in 2027-2029, this does not mean that expenditure will fall drastically after 2029, as almost PLN 77 billion in outlays is planned in 2031-2033," Lysenko said.

"We are asking for tenders to be spread evenly, and we are asking for this in the long term as well," he added.

The group is also expanding in the energy segment.

"The Polish grip operator PSE's programme is an area we are investing heavily in. We have created a team to deal with it, and we are investing in it. We have secured the first three contracts for PSE, worth PLN 460 million and 120 km of grid infrastructure," CEO Artur Popko said.

"Military contracts are a growing pool for us," he added.

doa/ han/ nl/