Vienna - PORR achieved a record result of EUR 130.7 million in 2023.

With an increase in performance of 5.6% and efficient cost management, PORR has performed excellently in a challenging environment.

Strong drivers such as the green transformation and the energy transition are providing positive impetus to the order situation, particularly in civil engineering and infrastructure construction.

'2023 was an enormously exciting and at the same time challenging year for the construction industry. Thanks to our broad portfolio and our comprehensive infrastructure expertise, we were able to achieve a great result in this environment,' summarizes PORR CEO Karl-Heinz Strauss. On the one hand, positive impulses in environmental and energy policy stimulated construction activity. On the other hand, the industry felt a decline in residential construction, which accounts for around 8% of PORR's order backlog. Civil engineering and infrastructure construction once again proved to be growth drivers.

This trend is reflected in both PORR's production output and order books. Production output rose by 5.6% to EUR 6,577 million compared to the previous year, and in the home markets of Poland, Romania and Germany it even grew by double digits. More than half of the output came from civil engineering. The lion's share of production output, amounting to 45.1%, was generated in the home market of Austria.

Infrastructure projects that make waves

PORR's order backlog increased by 3.0% to EUR 8,452 million, while order intake increased at the same time by 2.7% to EUR 6,835 million - a continuation of the positive trend of previous years. The largest new orders of the year also came from civil engineering. The frontrunner here was construction lot H53 of the Brenner Base Tunnel - the largest construction lot in the history of Austria with a total contract value of almost EUR 1 billion - which is being carried out together with an ARGE partner. In the area of ??infrastructure, PORR was able to win important projects related to energy transformation, such as tunneling under the Elbe for the powerful SuedLink wind power line in Germany and the Ebensee pumped storage power plant in Austria. Strauss emphasizes: 'Examples like these show: the construction industry is an important part of the energy transition and PORR is significantly involved in it.'

Positive impulses can also be felt in other building construction, for example in healthcare, industrial and commercial construction as well as in public building construction. PORR's new healthcare projects include the oncology hospital in Wroclaw and the Pomeranian Medical University of Szczecin in Poland. They show that the healthcare sector is a major growth market. In addition, industrial construction plays a significant role in incoming orders, where PORR has won, among other things, the contract to expand Vienna-Schwechat Airport.

Sales increased, expenses reduced

With an increase in sales of 4.5%, PORR was able to reduce material costs by 5.8% compared to the previous year and successfully manage the increased personnel and subcontractor costs due to inflation. With the resulting very pleasing earnings before taxes (EBT) of EUR 130.7 million, PORR once again demonstrated its resilience in a challenging market environment. The EBT margin measured in relation to production output increased to 2.0%. The EBIT margin based on sales rose to 2.3%. Earnings per share also increased significantly: they increased by 34.3% to EUR 2.21.

Improved financial performance

PORR has significantly improved its balance sheet structure through consistent capital management. As of December 31, 2023, the equity ratio was 20.8%. Through the early refinancing of the hybrid and profit participation capital, the equity ratio is sustainably secured.

Through focused receivables management, trade receivables were successfully reduced and working capital was also reduced. PORR still has a comfortable liquidity cushion. The liquidity reserves amounted to EUR 1,037 million as of the reporting date. For the third year in a row, PORR also recorded a net cash position of EUR 40.1 million at the end of the year.

Outlook 2024

Based on the well-filled order books, the Management Board expects a moderate increase in performance and an increase in operating profit for 2024 despite a volatile environment.

The assessment of further business development is based on the current goals in the individual areas as well as the opportunities and risks that arise in the respective markets. Should the geopolitical situation worsen, this could have negative effects on PORR and its business activities. Any assessment of economic development is therefore subject to forecast risks.

Contact:

Karl-Heinz Strauss

CEO, PORR AG

Tel: 43 50 626 1001

Email: comms@porr-group.com

Klemens Eiter

Tel: +43 50 626 1004

Email: comms@porr-group.com

Melanie Manner

Press Spokesperson, PORR AG

Tel: +43 50 626 5867

Email: comms@porr-group.com

Lisa Galuska

Head of Investor Relations, PORR AG

Tel: +43 50 626 1765

Email: ir@porr-group.com

(C) 2024 Electronic News Publishing, source ENP Newswire