Erbud wants to be active in prefabrication market for military; low investment and price war as challenges

"Estimates for GDP growth in 2025 vary between 3.3 percent and 3.6 percent, depending on the agency. (...) As for construction and assembly production, which is where Erbud's core business lies, unfortunately the data is not optimistic, and it is estimated that 2025 will end with a slight decline in construction and assembly output," Erbud's CEO Agnieszka Glowacka pointed out at the conference.

"We saw a very slight rebound in June, but July and August were weaker – we are lacking investments. According to data from Poland's stats office GUS, investments fell by 1 percent year on year in July, and we know that 2024 was a very weak year in terms of investments," she added.

Deputy CEO Jacek Leczkowski pointed out that in terms of challenges for the company and the entire market, the supply of tenders is still much lower than the government had announced.

"This leads to fierce competition and a price war, which sometimes results in tender prices that are, in our opinion, very low, and we are trying to offer safe deals all the time (...) We were hoping that there would be more tenders," Leczkowski said.

"The private market and private investors have significantly reduced their investments in Poland, so it is quite a challenge to win a good contract. Of course, this means that construction companies have much greater production capacity than they are currently using. These are further factors contributing to the ongoing price war for contracts," he added.

Erbud's deputy CEO pointed out that the President's veto to the so-called wind farm law will not accelerate investment processes, as the market had hoped.

Leczkowski emphasised that the group is active in the military market.

"A law has been passed that will allow investments to start much faster – colloquially speaking, if the Ministry of National Defence decides that it wants to build something somewhere, it can practically do so," he assessed.

"(...) The military is also a very large market for prefabrication, and we would also like to be an active player in this contract market," the deputy CEO added.

Pawel Przybylski, the CEO of Erbud's RES construction subisidiary Onde, pointed out at the conference that the company is in talks regarding the sale of a hybrid photovoltaic-wind project in the development sector.

"Of course, we also want to ultimately bring other projects in our portfolio to this stage," he said.

"Energy storage is a huge new segment that is emerging – we can see this from the number of discussions, interested customers, and tenders we are receiving, and it is also part of our strategy, of course," he added.

The value of the Erbud group's external order portfolio at the end of June 2025 exceeded PLN 2.8 billion (EUR 656.9 mln), almost the same amount as in the prior year period. The execution value of own projects in renewable energy sources is over PLN 700 million (EUR 164.2 mln).

In the first half of 2025, the group generated PLN 1.53 billion (EUR 358.94 mln) in revenue, up by 15 percent from PLN 1.33 billion (EUR 312 mln) in the prior year period.

The gross sales margin reached PLN 112.7 million (EUR 26.44 mln), up by 11 percent year on year.

EBITDA amounted to PLN 28.8 million (EUR 6.8 mln), 10.9 percent lower than in the first half of 2024.

The operating result fell from PLN 11.7 million last year to PLN 3.4 million (EUR 797,640), and the net loss reached PLN 9.8 million (EUR 2.3 mln), against a profit of PLN 0.6 million (EUR 140,760) in the prior year period.

As reported, the largest positive contribution to the group's results in the first six months of 2025 came from Onde, a company specialising in renewable energy sources.

This area generated nearly PLN 367 million in revenue (EUR 86.1 mln), up by 4.0 percent year on year; PLN 42.5 million (EUR 10 mln) in sales margin, up 27.5 percent year on year, and PLN 19.4 million (EUR 4.55 mln) in EBITDA, down by 28.5 percent on annual basis.

The Onde group's backlog, resulting from orders from external entities, amounted to PLN 611.2 million (EUR 143.4 mln) at the end of June 2025, up by 1.6 percent year on year. The renewable energy project portfolio amounts to approximately 1.8 GW.

alk/ ao/