Australian acquisition drives growth for Strabag

Strabag announced in January this year that it had agreed to pay €140 million to buy all the shares in civil engineering firm Georgiou Group.

It said that roughly half the output growth it experienced in the first half of this year was down to the consolidation of Georgiou Group into its operations.

Meanwhile, the largest absolution increases in its established markets were recorded in Poland, the Czech Republic, and Germany.

But output fell in the UK, as ongoing projects reached completion, and in Hungary, where EU funds remain frozen and public investment has stalled.

Strabag also reported a 13% year-on-year increase in its order backlog for the first half of 2025, which was €3.2 billion higher than in the same period a year earlier.

It said the increase was down to strong project acquisitions in railway construction, energy infrastructure, high-tech buildings, and university and research facilities.

The biggest growth in the order backlog came from Germany, the Czech Republic and Austria. Australia contributed around €660 million to the total as at the end of June 2025.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 20% to € 430.81 million in the first half of 2025.

The company, which employs more than 79,000 people, said is maintaining its output target of €21 billion for the full year, while EBIT margin is expected to reach “at least 4.5%”.

Stefan Kratochwill, CEO of Strabag, said, “The first half of 2025 clearly shows that we are on a profitable growth trajectory. Our success in strategic future-oriented sectors and our expansion into Australia are not only reflected in new records for output and order backlog, but also in significantly increased earnings.”