Improvements at every level, positive outlook for 2024
- Production output up by 5.6% to EUR 6.6 bn
- Top order backlog of EUR 8.5 bn – a rise of 3.0%
- Increase in EBT by 18.8% to EUR 130.7m
- EBIT improves by 16.8% to EUR 140.3m
- Earnings per share grow by 34.3% to EUR 2.21
- Balance sheet structure optimised: Equity ratio up by 1.5 PP to 20.8%
Vienna, 21.03.2024 - PORR achieved record earnings of EUR 130.7m in 2023. With an increase in output of 5.6% and efficient cost management, PORR performed excellently in a challenging environment. In terms of the order situation, strong drivers such as the green transformation and the energy transition are providing positive momentum, particularly in civil engineering and infrastructure construction.
“2023 was an enormously exciting and challenging year for the construction industry. Our broad-based portfolio and comprehensive expertise in infrastructure allowed us to deliver great results in this environment”," said PORR CEO Karl-Heinz Strauss. On the one hand, positive developments in environmental and energy policy provided impetus for construction activity. On the other hand, the industry felt the effects of a decline in residential construction, which plays a subordinate role in PORR’s order backlog, accounting for around 8%. Civil engineering and infrastructure construction once again proved to be growth drivers.
This trend is reflected in both production output and in PORR’s order books. Production output rose by 5.6% against the previous year to EUR 6,577m, with double-digit growth on the home markets of Poland, Romania and Germany. More than half of the output came from civil engineering. The lion’s share of production output with 45.1% was generated in the home market of Austria.
Infrastructure projects making a mark
PORR’s order backlog increased by 3.0% to EUR 8,452m, while the order intake rose by 2.7% to EUR 6,835m - a continuation of the positive trend of previous years. The largest new orders of the year also came from civil engineering. Leading here is construction lot H53 of the Brenner Base Tunnel - the largest construction lot in Austria’s history and with a total contract value of almost EUR 1 bn - which is being realised together with a consortium partner. In the infrastructure sector, PORR won important projects related to the energy transition, such as tunnelling under the River Elbe for the high-capacity SuedLink wind-power line in Germany and the Ebensee pumped storage power plant in Austria. Strauss again: “Examples like these show that the construction industry is an important part of the energy transition and PORR is playing a significant role in this”.
Positive momentum was also felt in other building construction sectors, such as healthcare, industrial construction and commercial construction as well as public building construction. PORR’s new healthcare projects include the oncological hospital in Wrocław and the Pomeranian Medical University Szczecin in Poland. They show that the healthcare sector is a major growth market. Industrial construction is also playing a significant role in PORR’s order intake which included winning the contract to expand the Vienna airport.
Higher revenue, lower expenditure
While revenue rose by 4.5%, PORR was able to reduce the cost of materials by 5.8% against the previous year and successfully manage the inflation-driven rise in staff and subcontractor costs. With the resulting very pleasing earnings before taxes (EBT) of EUR 130.7m, PORR once again demonstrated its resilience in a challenging market environment. The EBT margin in relation to production output rose to 2.0%. The EBIT margin in relation to revenue climbed to 2.3%. Earnings per share also rose sharply, increasing by 34.3% to EUR 2.21.
Improved financial performance
PORR has significantly improved its balance sheet structure with consistent capital management. As of 31 December 2023, the equity ratio stood at 20.8%. The early refinancing of hybrid capital and profit-participation rights will sustainably safeguard the equity ratio.
Trade receivables were successfully reduced through targeted receivables management and working capital decreased as well. PORR still has a comfortable liquidity cushion. Liquidity reserves totalled EUR 1,037m at the end of the period. For the third year in a row, PORR recorded a net cash position, totalling EUR 40.1m at year-end.
Outlook 2024
Based on the well-filled order books, the Executive Board expects a moderate increase in output for 2024 and a rise in EBIT despite a volatile environment.
The assessment of how the business will perform is based on the current goals in the individual segments as well as the opportunities and risks arising in the respective markets. Should the geopolitical situation intensify, this could have a negative impact on PORR and its business activities. Any assessment of economic development is therefore subject to forecasting risks.
Facts and figures at a glance
| Key financial indicators (EUR m) | 2023 | % ∆ | 2022 |
| Production output1 | 6,577 | 5.6% | 6,226 |
| Average staffing levels | 20,665 | 2.1% | 20,232 |
| Order backlog | 8,452 | 3.0% | 8,204 |
| Order intake | 6,835 | 2.7% | 6,659 |
| Revenue | 6,048.5 | 4.5% | 5,786.0 |
| EBITDA | 344.3 | 8.0% | 318.9 |
| EBIT | 140.3 | 16.8% | 120.1 |
| EBT | 130.7 | 18.8 % | 110.0 |
| Profit for the period | 95.0 | 15.0 % | 82.6 |
| Financial position indicators (EUR m) | 31.12.2023 | % ∆ | 31.12.2022 |
| Total assets | 4,136 | -0.3% | 4,147 |
| Equity capital | 860 | 7.7% | 799 |
| Equity ratio | 20.8% | 1.5 PP | 19.3% |
| Net Cash | 40 | -32.1% | 59 |
| Free Cashflow | 99.4 | -47.9% | 190.6 |
| Key share data (EUR) | 2023 | % ∆ | 2022 |
| Earnings per share | 2.21 | 34.3% | 1.65 |
| Dividend per share | 0.752 | 25.0% | 0.60 |
1 Production output corresponds to the output of all companies and consortiums (fully consolidated, equity method, proportional or those of minor significance) in line with the interest held by PORR AG.
2 Proposal to the Annual General Meeting
| Non-financial indicators | 2023 | % ∆ | 2022 |
| Energy intensity (MWh/TEUR) | 0.114 | -10.4% | 0.127 |
| Intensity of GHG emissions (Scope 1+2) (t CO2 e/TEUR) | 0.028 | -13.3% | 0.033 |
| Total waste (t) | 10,651 | 16.3% | 9,159 |
| Recycled materials used (t) | 109,515 | 17.5% | 93,200 |
| Total water consumption (Tm3) | 218 | -9.1% | 240 |
| Work-related injuries (rate) | 13.5 | -11.6% | 15.3 |
| Share of female staff | 16.1% | 0.3 PP | 15.8% |
| Anti-corruption training (Number) | 3,965 | 25.6% | 3,158 |
You can find the press release here in the PORR Newsroom. High-resolution images from this year’s press conference on the annual results will also be available there from around 11:00 am (please note the copyright © PORR). The Annual and Sustainability Report 2023 can be downloaded here.
Here you can find our report in a compact web version.
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
Press contact:
Melanie Manner
Press spokeswoman, PORR AG
T +43 50 626 5867
comms@porr-group.com
Investor Relations contact:
Lisa Galuska
Head of Investor Relations, PORR AG
T +43 50 626 1765
ir@porr-group.com
