Revenue and Profit Development
The PORR Group, Austria’s second-largest construction company, presented its quarterly figures for the first quarter of 2025 on May 22, 2025. Despite the strong seasonality that traditionally makes the first quarter the weakest of the year, there are interesting developments that are significant for investors.
- Revenue: The revenue of the PORR Group slightly decreased by 0.85% compared to the previous year to just under 1.27 billion euros. This slight decline is seasonally induced and aligns with expectations for the first quarter.
- Profit Development: The period profit fell by 16.2% to 5 million euros. However, the PORR Group achieved good operational results. The earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 7.7% to 64.8 million euros. Earnings before interest and taxes (EBIT) increased by 11.7% to 12.6 million euros. The pre-tax profit (EBIT) was 7 million euros, representing a decline of 12.5% compared to the previous year.
Operational Performance
- Cost Management: Despite higher personnel costs, the PORR Group was able to achieve absolute savings in material expenses and other production activities. This shows that the company is actively working on optimizing its costs.
- Staff Level: The staff level remained stable at a total of 20,139 employees, reflecting a slight increase of 0.3%.
Seasonality and Outlook
- Seasonality: Due to seasonality in construction, the first quarter is traditionally the weakest of the year. Despite these challenges, the PORR Group was able to achieve solid operational results.
- Outlook: The quarterly figures provide investors with insights into the company’s performance, particularly regarding its ability to cope with seasonal fluctuations. The operational progress and cost optimization are positive signals for the future.
In summary, the PORR Group shows a mixed balance in its first quarter of 2025. While revenue and period profit declined, the company was able to achieve good operational results and manage its costs effectively. These developments are of interest to investors as they underscore the resilience and adaptability of the company.