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Erbud SAUPDATE: Erbud builder sees current order backlog at nearly PLN 4 bln as satisfying
The value of listed builder Erbud's order backlog at the end of March amounted to PLN 3.89 billion (EUR 918.8 mln), of which PLN 2.93 billion (EUR 692.1 mln) was the backlog for external customers, the company said in its results presentation. In the prior year period, the group's backlog stood at PLN 3.92 billion (EUR 925.9 mln). The management considers the backlog level to be satisfactory and is taking a prudent approach to new orders.
The value of contracts acquired in the first quarter of 2025 was PLN 870 million (EUR 205.5 mln).
"As of today, we have exceeded PLN 1 billion this year and we continue to sign contracts. The situation is good - not very good, but we are facing a very good situation in the coming months and that makes us optimistic," CEO Dariusz Grzeszczak told a video conference.
"We take a prudent approach to signing orders. We even sometimes say that we don't want more revenue, even though we could, but we are at a sensitive moment - it looks like the war in Ukraine is going to end in the coming months and there is a 10-20 year investment boom waiting for everyone there. You will have to be well placed and positioned in that - with the shortage of workers, the wage pressure, the demand for materials," he added.
As the management stated, the group currently has no plans to operate in Ukraine.
Erbud is focusing on signing shorter-term contracts.
"It seems that the four-year contracts we could have today are not very favourable if there is no indexation in them, so we are signing maximum two-year contracts to be able to guarantee fixed prices," Grzeszczak said.
"The portfolio of PLN 4 billion is satisfactory for us," he added.
As the CEO reported, the group has its portfolio filled for the entire year in the volume segment and wants to sign contracts for next year rather than the current one.
doa/ ao/