Strabag (STR) Q3 2024 TU earnings summary

Executive summary

• Order backlog increased by €1.9 billion to €25.3 billion year-to-date, up 8% since December 2023, providing strong visibility towards 2026 and a solid position for 2025.

• Output volume remained stable at €13.6 billion for the first nine months of 2024, with growth in Poland, Germany, and Italy offsetting declines in Austria and Hungary.

• S&P upgraded the rating to BBB+ with a stable outlook, citing a diversified business model, strong risk management, and high net cash.

• Employee count increased 2% to 77,953 FTEs, mainly due to acquisitions in Germany and Benelux.

Financial highlights

• Output volume for 9M 2024 was €13,642 million, nearly unchanged year-over-year.

• Order backlog reached €25,335 million, up 8% from December 2023, with notable gains in Germany, Poland, and Slovakia.

• Largest output increases in Poland, Germany, and Italian infrastructure; declines in Austria and Hungary due to residential market weakness.

Outlook and guidance

• Output volume for FY 2024 expected at €19.4 billion, with EBIT margin guidance confirmed at ≥4%.

• Net investments guidance raised to <€800 million for FY 2024.

• Growth anticipated in International + Special Divisions; North + West stable; South + East to decline but remain high.