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Poland’s largest construction company, Budimex reported a more than 24% year-on-year decline in net profit for the first quarter, mainly due to severe winter conditions and lower activity in its road construction business. Construction sales in Poland dropped nearly 19% as snow and low temperatures disrupted work during the initial months of the year. The company also saw reduced output after completing several high-revenue road projects executed last year. Despite weaker revenue, Budimex maintained stable profitability margins and continued to strengthen its long-term order pipeline while expanding operations into rail, energy, industrial construction and international markets.
Poland’s biggest construction group, Budimex posted a more than 24% fall in first-quarter net profit compared to the same period last year, as harsh winter conditions affected construction activity and major road projects reached completion. Advertisement
The company stated that construction sales in Poland declined 18.7% year-on-year. Low temperatures and snowfall during the first two months of the year slowed work across project sites, affecting overall execution and delivery timelines.
Budimex also witnessed lower output in its road construction division after several projects that had generated strong revenue in the previous year were completed. The slowdown in this segment impacted the company’s overall quarterly performance, as road infrastructure remains one of its key business areas.
Total revenue during the quarter fell 9% to around PLN 1.5 billion, equivalent to nearly USD 417 million. However, the company’s operating margin improved slightly to 6.95% from 6.75% a year earlier, indicating that cost control and operational efficiency remained relatively stable despite lower business activity.
Over the past few years, Budimex has been gradually reducing its dependence on road construction projects by expanding into rail infrastructure, energy and industrial construction. The company has also been focusing on international growth opportunities across Germany, the Czech Republic, Slovakia, Latvia and Estonia as part of its long-term diversification strategy.
The company further said that its order backlog stood at PLN 18.8 billion at the end of March. This backlog is expected to secure a significant portion of its revenue pipeline through the end of 2027, providing visibility for future business despite current market challenges.
Earlier, several European construction companies had also flagged weather-related disruptions and slower infrastructure execution due to difficult winter conditions across parts of the region. Rising costs, labour shortages and delays in public infrastructure spending have additionally affected construction activity in many European markets over the past year.
Source Reuters
5th Jun, 2025
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