Budimex posted PLN 119.15m net profit, PLN 114.98m EBIT in Q1 2024

Budimex posted PLN 119.15m consolidated net profit attributable to shareholders of the parent company in Q1 2024 against PLN 106.3m profit a year earlier, the company said.

Operating profit was PLN 114.98m vs. PLN 102.33m profit a year earlier.

Consolidated sales revenue reached PLN 1,644.88m in Q1 2024 vs. PLN 1,939.43m a year earlier.

In the 3 months of 2024, construction and assembly production in Poland expressed in constant prices was 10.8% lower than in the same period last year, while sales of the Budimex Group's construction segment on the domestic market decreased by 19.6% in comparable periods, Budimex reported.

Budimex Group's sales revenue in Q1 2024 decreased by 15% year-on-year, while operating profitability improved, the company pointed out.

The decrease in sales is due to the investment cycle of the largest ordering parties, particularly in the railway area. In addition, the execution of several important contracts, which had a large share of sales revenue last year, was completed. Several factors contributed to the observed increase in operating profitability in the first quarter of this year. One of them was the stabilisation of prices and greater availability of construction materials and subcontractor services. An improvement in operating profitability was recorded, among others, in the volume construction segment, which, thanks to the completion and settlement of several large and difficult contracts last year and the greater availability of subcontractors, achieved higher profitability in the current quarter than in the same period of the previous year, Budimex reported

Due to delays in the acquisition of EU funds under the National Reconstruction Programme, last year did not bring the expected settlement of tenders and signed contracts in the railway construction segment, which would have allowed for a smooth reconstruction of the order book in this area and maintaining the level of sales achieved last year, Budimex stressed.

In the first quarter of 2024, the services segment, of which the FBSerwis Group is a pillar, increased its sales revenue (by nearly 8%) compared to the same period last year. At the same time, it was noted that the level of gross sales profit generated was maintained, comparable to the result achieved in the first quarter of 2023. The increase in sales revenue was recorded mainly in the infrastructure maintenance services segment, Budimex reported.

On a standalone basis, net profit in Q1 2024 was PLN 96.65m, compared to PLN 92.32m profit a year earlier.

Budimex Group's order backlog amounted to PLN 14,644.72m at the end of March this year, with the value of contracts signed in January-March this year amounting to PLN 2,702.85m, the company reported. After 31 March this year, contracts worth nearly PLN 0.5 billion were signed.

Budimex Group's order portfolio as at 31 March 2024 amounted to PLN 14,644,717 thousand. The value of contracts signed between January and March 2024 amounted to PLN 2 702 848 thousand. After 31 March 2024, contracts worth nearly half a billion PLN were signed. In addition, the value of contracts in which the offers of the Group's companies are the lowest or have been assessed the highest by the ordering parties is over PLN 10 billion, of which nearly PLN 5 billion were contracts on foreign markets. This provides the Budimex Group with stable prospects for maintaining an optimal level of the order portfolio in the coming quarters and stabilises the foundations of its operating activities for the years 2025-2026, according to Budimex quarterly report.

Source: Budimex Group and ISBnews