PORR (POS) Q1 2025 earnings summary

Executive summary

• Strong order intake and backlog growth in Q1, with order intake up 17.4% to EUR 1.54bn and backlog rising 4.4% to EUR 8.81bn, driven by gains in Germany, Austria, CEE, and building construction projects.

• EBIT increased 11.7% year-over-year to EUR 12.6m, with margin improving to 1.0%; profit for the period declined 16.2% to EUR 5.0m due to lower interest income and higher staff expenses.

• Equity ratio improved to 19.8%, up EUR 18.4m from last year, despite hybrid bond redemption and share buybacks.

• Share price surged 48.0% in Q1 2025, with market capitalisation reaching EUR 1.03bn.

• Positive outlook for European construction, especially in infrastructure and specialty building segments, with residential construction showing early signs of recovery in Germany and Austria.

Financial highlights

• Revenue was EUR 1,264.8m, down 0.8% year-over-year; EBITDA rose 7.7% to EUR 64.8m.

• EBIT increased 11.7% to EUR 12.6m, with a 1.0% margin; equity increased by EUR 18.4m (+2.3%) compared to March 2024.

• Net debt increased to EUR 259.5m, mainly due to hybrid bond redemption, share buybacks, and acquisitions.

• Liquidity reserves, including committed cash lines, exceed EUR 800m.

• Cash flow from operating activities was EUR -111.8m, reflecting seasonal working capital needs; CAPEX was EUR 69.1m, down 8.3% year-over-year.

Outlook and guidance

• Guidance confirmed: moderate growth in output and revenue, with a 2025 EBIT margin target of 2.8%–3.0% and a long-term target of 3.5%–4.0% by 2030.

• Order backlog exceeds EUR 8.8bn, supporting future growth.

• Forecasts are subject to risks from geopolitical tensions and trade policy uncertainty.