BAM reports promising Q3 results despite challenging market conditions

Dutch construction and property services company BAM reported a revenue of €4.5 billion for the first nine months of 2023.

“The market conditions remain challenging as a consequence of high-interest rates, political and geopolitical uncertainties” (Photo: AdobeStock)

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are said to have adjusted to €199 million in the first nine months, representing a margin of 4.4%.

BAM adds that it is hopeful that it will deliver an adjusted EBITDA margin of approximately 4.5% for the full-year of 2023.

Ruud Joosten, CEO of Royal BAM Group, said, “The market conditions remain challenging as a consequence of high-interest rates, political and geopolitical uncertainties and the continued pressure to attract and retain staff.

“Against this background, our order book is maintained at a good level of €9.4 billion, with a clear focus on the quality of the order intake.”

In the Netherlands, the Dutch residential activities reported a satisfactory contribution under difficult market conditions. During the third quarter, the performance of non-residential is said to have recovered and telecom, energy and water continued to contribute strongly. The operational performance of civil engineering is also said to have remained solid.

The company recently won the WeideWald project in Doetinchem to realise 73 sustainable wooden Flow homes and the circular redevelopment of the ABN AMRO Foppingadreef office in Amsterdam.

In the United Kingdom and Ireland, Civil engineering UK are said to have delivered good results which have been supported by a high activity level. BAM Ventures and Ireland continued their strong performance whilst the contribution of Construction UK was impacted by inflation and supply chain challenges on some larger contracts.

The announced cancellation by the UK Government of the Birmingham to Manchester phase of the HS2 rail project has no impact on BAM’s current order book.