Profil:
Erbud SAErbud builder expects no profit in MOD21 in 2025; focuses on reducing loss
Listed builder Erbud does not expect to make a profit in MOD21 in 2025 and the focus in the modular construction area is on reducing the loss, the group's representatives told a video conference. They added that a break-even is possible in 2026.
"Regarding MOD21, this year we are focusing on reducing the loss. We have overworked margins on contracts that are rolling over and it comes out that the margin on sales is settling at zero, also the loss we will make here will be equal to the overheads," said Erbud's deputy CEO Jacek Leczkowski.
"Therefore, we are focusing to save as much as possible. The portfolio is still PLN 230 million to be processed and this is not all for 2025, [taking into account] what is to be processed plus the first quarter, we will exceed PLN 200 million this year," he added.
MOD21 is a timber modular construction company.
"We assume that we will go through zero in 2026, not yet in 2025. We are working to generate as little loss as possible. We assume the break-even in 2026 and profits in the following years," Leczkowski assessed.
In the first quarter of 2025, revenues from the modular construction segment amounted to PLN 38 million (EUR 8.94 mln), with an EBIT loss of PLN 11.9 million (EUR 2.8 mln).
"We are hoping to win contracts for the military in Germany, there are large investments planned there. We are doing a lot of work to identify this market and establish ourselves there," Erbud's deputy CEO said.
"Poland has also become a very interesting market for MOD21 (...) and we hope that it will be a more significant market than we assumed 3-4 years ago," he added.
The CEO pointed out that modular construction, in addition to education-related buildings, could also be used for government housing programmes, due to the short time to use the funds.
doa/ ao/