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PORR delivers strong first quarter 2022

  • Order backlog surpasses 8 billion-euro mark
  • Production output up by 15.9% to EUR 1,161m
  • Revenue and earnings higher than Q1 2021
  • Outlook confirmed: Target EBT margin of 3% in 2025
     

Vienna, 30.05.2022 – PORR has had a good start to 2022 and generated positive EBT in the first quarter for the first time, totalling EUR 0.6m. The order backlog and production output have both increased, providing PORR with a good basis in the challenging environment.

“PORR performed well in a difficult environment in the first quarter”, said PORR CEO Karl-Heinz Strauss. The market situation remains exciting. “The construction industry is experiencing opposing forces: On the one hand, we welcome the full order books and growing demand for our services in every area. On the other hand, cost increases and bottlenecks on the procurement market are dampening growth in the sector. Against this backdrop, we have nevertheless been able to leverage existing opportunities, stay on track, and generate profits”, said Strauss.

Record order backlog and increase in output

In terms of the order backlog, PORR managed to surpass the 8-billion-euro mark, with EUR 8,033m of orders on its books. The largest new orders here came from the infrastructure sector. In Norway, for example, PORR is building a new bridge for the city of Drammen worth EUR 85m. Major orders in building construction include the conversion and new build of the Alte Akademie in Munich and the construction of the Florido Liner office building in Vienna.

PORR also increased its production output once again: In Q1 it reported growth in every operational segment. Overall, production output rose by 15.9% against Q1 2021 to EUR 1,161m. Growth was especially pronounced in the AT / CH and CEE segments.

PORR also achieved healthy growth in revenue and earnings. In the first quarter, PORR generated revenue of EUR 1,110.8m – a full 14.7% higher than in the same period of the previous year. PORR grew in almost every one of its home markets. Despite the significant price increases on the procurement market, it managed to achieve EBT of EUR 0.6m.

Strong balance-sheet structure

At the end of Q1, PORR enjoyed a stable balance sheet. PORR has a solid liquidity cushion exceeding EUR 800m. Repayment of hybrid capital of EUR 51.1m led to a slight reduction in the equity ratio to 19.1%. In addition, improved cash flow facilitates flexibility and security. What’s more, there was a clear reduction in net debt – which decreased by EUR 171.1m compared to March of the previous year.

Market demand at high level

Demand in the construction industry remains at a high level. “In the medium to long term, we see major opportunities for the construction industry in global megatrends. For example, the EU Green Deal is ensuring continued demand for sustainable mobility and environmentally conscious, circular construction. Constant urbanisation also means growing demand for affordable housing in cities”, said Strauss. For PORR, the focus in the coming years will be on the Green and Lean strategy, in which sustainability, efficiency and the digitalisation of construction processes are being promoted.

EBT margin 2025 confirmed

Full order books provide PORR with a solid basis despite a difficult environment. The focus is on selective, intelligent growth in order to achieve sustainable profitability. Further efficiency gains are being achieved as part of the future programme PORR 2025. The Executive Board is striving for a target EBT margin of 3.0% at Group level by 2025.

Assumptions about the further course of business are based on the current targets in the individual areas as well as the opportunities and risks arising in the respective markets at the beginning of 2022. The consequences of a possible intensification of the Ukraine conflict as well as its duration and another significant increase in energy and construction material prices cannot be assessed at present. The actual course of business may deviate from the estimates and expectations of the Executive Board depending on external political, legal and economic factors.

Key performance indicators (EUR m) 1-3/2022 % ∆ 1-3/2021
Production output1 1,161 15.9 % 1,002
Average staffing levels 19,559 2.8 % 19,033
Order backlog 8,033 1.4 % 7,920
Order intake 1,429 -22.7 % 1,850
Revenue 1,110.8 14.7 % 968.4
EBITDA 50.3 30.4 % 38.6
EBT 0.6 < 100.0 % -9.4
Profit/loss for the period 0.4 < 100.0 % -7.2

Financial position indicators (EUR m)

31.03.2022

% ∆

31.12.2021
Total assets 3,914 -3.7 % 4,065
Equity 746 -9.5 % 824
Equity ratio 19.1 % -1.2 PP 20.3 %
Net debt 135 < 100.0 % -65

1    Production output corresponds to the output of all companies and consortiums (fully consolidated, equity method, proportional or those of minor significance) based on the interest held by PORR AG.

For enquiries, please contact:

Karl-Heinz Strauss
CEO
PORR AG
T +43 50 626 1001
comms@porr-group.com

Klemens Eiter
CFO
PORR AG
T +43 50 626 1004
comms@porr-group.com

Milena Ioveva
Konzernsprecherin
PORR AG
T +43 50 626 1763
comms@porr-group.com

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