Budimex (BDX) Q2 2025 earnings summary

Executive summary

• Backlog reached 17.0 bn PLN with about 220 active contracts, including a 1.4 bn PLN Rail Baltica Estonia agreement, securing revenues through 2027.

• EBIT margin in construction rose to 7.6% (+0.3% y/y), and service segment margin grew to 10.3% (+2.0 p.p. y/y), with operating profitability at 7.65%.

• Revenues for H1 2025 were 4,040 M PLN (up 2.4% y/y) or 3.95 bn PLN (down 2.3% y/y), with net profit for shareholders at 302 M PLN or 269 M PLN.

• Dividend of 649 M PLN paid in June 2025, impacting net cash position.

Financial highlights

• Construction segment revenues were 3,885 M PLN (+7.2% y/y), with EBIT at 257 M PLN (+8.0% y/y); service segment revenues were 444 M PLN, with EBIT margin at 10.3%.

• FBSerwis Group revenues reached 435 M PLN in H1 2025, with operating profitability at 11.8%.

• Gross profit on sales for H1 2025 was 485 M PLN, up 1.3% y/y, with gross margin at 12.29%.

• Net cash used in operating activities was -275 M PLN, with total net cash outflow of -1.14 bn PLN, mainly due to dividend payment.

• Cash and cash equivalents at period end were 2.06 bn PLN, down from 3.21 bn PLN at year-end 2024.

Outlook and guidance

• Backlog secures revenues through 2027, with stable prospects for maintaining optimal order levels.

• Increased foreign market activity, including new contracts in Estonia and Latvia, supports geographical diversification.

• Poland's GDP is projected to grow by 3.7% in 2025, with inflation expected to remain elevated.

• GDDKiA plans to announce tenders for at least 330 km of roads worth 13.5 bn PLN in 2025.

• PKP PLK plans railway tenders worth about 16 bn PLN per year.