Trakcja (TRK) Q4 2024 earnings summary

Executive summary

• Trakcja Group specializes in infrastructure and general construction, operating mainly in Poland, Lithuania, Latvia, and Sweden, with a focus on railways, roads, bridges, and energy projects.

• In 2024, the group signed contracts worth PLN 2,534 million and ended the year with an order backlog of PLN 3,136 million.

• Consolidated sales reached PLN 2,103 million, with a net profit of PLN 36 million and EBITDA of PLN 98 million for 2024.

Financial highlights

• Revenue for 2024 was PLN 2,103 million, up by PLN 37.8 million year-over-year.

• Gross profit from sales was PLN 124.5 million, down by PLN 25.8 million compared to 2023; gross margin fell to 5.9% from 7.3%.

• Operating profit was PLN 62.1 million, a decrease of PLN 33.6 million year-over-year.

• Net profit for 2024 was PLN 35.5 million, down by PLN 20.8 million from 2023.

• EBITDA reached PLN 97.6 million, a decrease of PLN 33.3 million year-over-year; EBITDA margin dropped to 4.6%.

Outlook and guidance

• The domestic construction market in 2024 declined by 2.4% compared to 2023, mainly in building construction and specialist works, while civil engineering grew by 0.5%.

• Significant public investment programs in rail and road infrastructure are planned through 2030, with PLN 169 billion for rail and PLN 302 billion for roads.