Budimex expects margin stabilization thanks to a healthy order book surrounded by high competition and the expected lower supply of tenders, according to President Artur Popko.
“We are entering a new year with a portfolio of orders exceeding PLN 13 billion and a record level of contracts waiting to be signed. Our portfolio is healthy, built on contracts signed in the last 2 years, which were offered at current prices, and in addition, most projects include valorization. In the environment of high competition and the expected lower supply of tenders at the main contracting authorities, this gives us the prospect of a stable margin and at the same time the comfort of business and the certainty of the use of our production capacity for the next 2-3 years,” Popko wrote in a commentary on selected financial data for 2023.
“In the local market, we are constantly observing an aggressive fight for orders in both the road, railway and cubature areas. In addition, we consistently face strong competition from foreign entities. Starting in tenders outside Poland, we usually have to undergo a certification process – we would like to feel that construction companies from abroad are verified and certified in Poland as much as Polish companies – as Budimex – in other EU countries. On the local market, we already have the first cases of additional verification of tenderers in terms of obtained references, but these are exceptions,” the president also wrote.
Revenues from the sale of the Budimex Group in 2023 amounted to PLN 9,802 million (+13.7% y/y). The Group’s gross profitability was 9.5% compared to 7.5% in 2022.
The Group’s procurement portfolio at the end of 2023 amounted to PLN 13.1 billion, and the value of projects pending signing, and those where the offer of Budimex or the group companies occupies the best bargaining position is currently nearly PLN 13 billion, of which over PLN 7 billion falls on contracts on foreign markets.
Budimex has been listed on the Warsaw Stock Exchange since 1995; it is part of the mWIG40 index. Its strategic investor is the Spanish company Ferrovial. In 2023, it had PLN 9.8 billion of consolidated revenues.
Source: Budimex and ISBnews
