Budimex (BDX) Investor presentation summary

Macroeconomic background and market trends

• Inflation in Poland reached the target of 2.5% in December 2025, with further declines expected through 2026; interest rates are forecast to fall to 3-3.5% in 2026, supporting investment-driven GDP growth.

• The PMI index for Poland improved to 48.5 in December 2025, indicating better industry sentiment, though investment levels remain subdued.

• Construction and assembly production is forecast to grow by 3-5% in 2026, with specialized construction showing the strongest segment growth.

• Margins in the construction sector have stabilized due to indexation mechanisms, with large companies maintaining higher profitability.

• Material prices (asphalt, concrete, steel, diesel) are expected to remain stable or rise moderately, with forecasts not accounting for potential conflict impacts.

Financial performance and segment results

• Achieved record high EBIT margin of 9.5% in the construction segment and 11.2% in the services segment for 2025.

• Group revenue grew by 3.5% in 2025, reaching PLN 9.4 billion, with net profit also increasing.

• Net cash position at the end of 2025 was PLN 2.6 billion, reflecting significant investments in fixed assets and new business areas.

• Capital expenditure rose to PLN 364 million in 2025, focusing on strategic investments in Poland, including renewable energy assets.

• Announced a 100% dividend payout policy for 2025-2030, continuing a 17-year history of regular dividends.

Backlog, contracting, and market outlook

• Backlog reached PLN 16.2 billion at the end of 2025, with PLN 5.7 billion in contracts in the pipeline and high effectiveness (90-95%) in converting pipeline contracts.

• Approximately 230 active contracts, with significant exposure in road, railway, and power engineering sectors.

• Road market outlook is strong, with PLN 20 billion in planned investments for 2026 and acceleration in contract signings expected.

• Railway and electro energy markets are set for significant growth, with PKP PLK and PSE planning annual expenditures of PLN 20 billion and PLN 5 billion, respectively.

• Military and industrial construction divisions are positioned for growth, supported by increased defense spending and energy sector opportunities.