BAM: solid earnings for nine months of 2022

Royal BAM group has published its financial report for the first nine months of 2022, declaring EBITDA (earnings before interest, tax, depreciation and amortisation) of €281 million.

BAM’s CEO, Ruud Joosten, left, and CFO Frans den Houter. Photo: BAM

The figure, says BAM, includes non-operational profit of €52 million, achieved from the sale of its German infrastructure company Wayss & Freytag, which was completed in September.

From an operational perspective, BAM says the earnings reflect challenges including inflation and supply chain constraints. Nevertheless, the capital ratio has improved over the reporting period by more than 21% and BAM has restated its expectation of delivering an earnings margin of at least 4% in its full-year results (excluding the Wayss & Freytag divestment).

In its results press release, the company highlighted an order book totalling approximately €10 billion, recently reduced by €600 million, due to the UK government’s review of its regional roads development programme.

Chief financial officer Frans den Houter said, “Let’s wait and see what the new government will do there. In the longer term we see a big appetite in the UK for investment in infrastructure.”

Following the publication of its nine-month results, BAM’s chief executive officer, Ruud Joosten, said, “We continue to face industry-wide pressure in the supply chain, cost inflation and high competition to attract and retain employees.”

He added that the group was able to mitigate most of these challenges through a combination of sourcing arrangements, contract terms and pricing.