Poland's Budimex reports profit fall, record order backlog in 2024

Budimex SA

26/02/2025 12:35

WARSAW, Feb 26 (Reuters) - Budimex BDXP.WA, Poland's biggest construction company and a unit of Spain's Ferrovial FERF.AS, reported a sharp drop in profit for 2024 on Wednesday, but said it ended the year with a record order backlog and hoped to win new military contracts.

Net profit fell by more than 16% year-on-year to 616 million zlotys in 2024 while sales revenues decreased by 7% to 9.1 billion zlotys, the company said.

The value of Budimex's order book rose to 17.8 billion zlotys ($4.5 billion) at the end of 2024 from 13.1 billion zlotys a year earlier, Chief Executive Officer Artur Popko said in a statement.

"The high value of the order portfolio secures the group's work front until the end of 2025, as well as for most of 2026, partially extending into 2027," he said.

The company is preparing to take part in the construction of a Polish nuclear power plant and is also counting on military contracts.

In 2025, Poland wants to allocate 4.7 percent of its Gross Domestic Product (GDP) to defence, the highest among NATO countries.

"These funds are included in railways and roads, among others," said Popko, adding that Budimex is one of the certified partners of military investments in Poland.

"We expect that a significant part of these budgets will be used to implement new construction projects. We hope to obtain further military contracts."

 ($1 = 3.9451 zlotys)

 (Reporting by Pawel Florkiewicz; editing by Philippa Fletcher)

 ((pawel.florkiewicz@thomsonreuters.com;))