Total revenues of Poland's largest construction groups up 14% y/y in 2023
The combined revenues of Poland's 40 leading construction groups amounted to PLN 77bn in 2023, an increase of around 14% y/y, according to a report by research firm Spectis titled "Construction companies in Poland 2023-2028". "Construction companies in Poland 2023-2028".
The combined revenues of the 40 leading construction groups in 2022 amounted to PLN 67bn, which accounted for 30% of the revenues of the entire sector of medium and large construction companies. Thanks to the better condition of engineering construction and due to the continued high level of inflation in the construction industry, in 2023 the companies recorded a nominal revenue growth of around 14%, to a record level of PLN 77bn, according to the report.
2023 was the third consecutive year with double-digit nominal revenue growth for the group of the 40 largest construction entities operating in Poland, which was largely the result of an overall increase in construction costs. For the further development of the group of the largest construction companies, it is necessary to quickly mobilise EU funding for Poland, i.e. all available funds from the National Reconstruction Programme and the 2021-2027 cohesion policy budget, it added.
The Polish construction sector remains a highly fragmented market with a slowly progressing consolidation. The share of the market leader (Budimex Group) in the revenue of all construction companies with more than nine employees was in 2022. 3.9%, up from 4.7% two years earlier. In turn, the five largest construction groups - Budimex, Strabag, Porr, Erbud and Polimex-Mostostal - account for 11.4% of revenues of construction companies with more than nine employees, according to the report.
Spectis' analysis of the largest contractors' current contracts shows that the groups currently involved in the highest value projects are: Budimex, Polimex-Mostostal, Intercor, Porr, Strabag, Mirbud, Gulermak and Mostostal Warszawa, mainly due to large road, rail and power contracts. Among companies specialising in non-residential construction, the highest contract values are carried out by: Porr, Adamietz, Budimex, Warbud and Skanska, as well as Mirbud, Strabag, Dekpol and Kajima. In the area of residential construction, on the other hand, the leading contractors are currently the groups: Unibep, Skanska and Erbud, listed.
In 2021, entry into the list of the top 40 construction groups would ensure recording revenues of more than PLN 500 million. In 2022, on the other hand, revenues of around PLN 650 million were already required to enter the top 40 list. In turn, in order to get onto the broad list of the 250 largest construction companies, revenues of more than PLN 120 million had to be achieved in 2022, it was stated.
As the financial results of contractors for recent years show, construction is still a highly unpredictable sector, characterised by a fluctuating number of large orders hitting the market each year. Meanwhile, the vast majority of the largest companies specialise in a particular type of construction, such as industrial/warehouse, energy, railway, bridge or tunnel construction, making these entities highly susceptible to market fluctuations. Like 2022, 2023 also brought quite a few negative surprises for contracting companies (including a continuation of the slowdown in the large procurement segment, largely due to the lack of NIP funds, the high level of inflation or the deterioration in the housing market). As a result, the dynamics of the aggregate order book of the largest contractors oscillated around 0%. However, from the last quarter of 2023 onwards, the market is showing more and more signs of recovery, which should have a positive impact on contractors' contracting during 2024, it was reported.
Source: Spectis and ISBnews
