Budimex expects stable growth in 2025, secure margins with expanding order book

Budimex, one of Poland’s leading construction companies, is optimistic about revenue growth in 2025, expecting stable margins supported by a robust order book. CEO Artur Popko, revealed the company’s plans to expand its backlog, including potential involvement in the construction of Poland’s first nuclear power plant.

“Our revenues this year will mirror the general trends in construction and assembly production across the country. We expect a slight decline by the end of the year,” Popko explained. “However, we foresee a rebound next year, with stable growth of 6-7% annually in the coming years, just as we’ve experienced in the past.”

Budimex’s current project portfolio, valued at over PLN 15.3 billion as of June, provides the company with a solid foundation. “This portfolio guarantees us work through 2025-2026, and for the first time in our history, we also have long-term contracts extending up to eight years. These contracts represent more than 25% of our backlog and ensure strong prospects for 2026-2027,” Popko noted. He emphasized that these contracts are secured at current market prices and benefit from a valorization process, which should help maintain stable margins similar to previous years.

Budimex is also positioned to take advantage of new investments in Poland, with Popko predicting the company could capture around 15% of the market share for upcoming projects. “We’re confident that future contracts will be signed with margins consistent with what we’ve achieved historically,” he added.

One of the most significant opportunities on the horizon for Budimex is its potential involvement in the construction of Poland’s first nuclear power plant. The company is currently in talks with both Westinghouse and Bechtel, key players in the nuclear project. Budimex’s subsidiary, Mostostal Kraków, has been shortlisted for cooperation with Westinghouse. “We are keen to provide the necessary expertise and resources for this massive project,” said Popko, adding that discussions with Bechtel are ongoing, particularly regarding quality standards and workforce capacity.

Budimex is not only targeting the nuclear plant’s construction but also the associated infrastructure, including railway and road connections and port works. “We are closely analyzing the tender processes from Polish Nuclear Power Plants and are particularly interested in preparatory work. Additionally, we are exploring opportunities for road construction projects that will connect the plant with the Tri-City,” Popko explained.

Budimex estimates that it could secure at least 15% of the available work related to the nuclear power plant, a project valued at around $17 billion. “Given our track record and efficiency in securing contracts, we expect that Budimex and Mostostal Kraków will be responsible for at least 15% of the investment,” Popko concluded.

Budimex, listed on the Warsaw Stock Exchange since 1995 and a member of the WIG20 index, is backed by its strategic investor, the Spanish company Ferrovial. In 2023, the company reported consolidated revenues of PLN 9.8 billion.

Source: Budimex and ISBnews