Financial performance
The consolidated Group revenue for the 2024 financial year amounted to € 17,422.22 million. As an increasing number of large-scale projects acquired in the past reporting periods are being carried out under joint venture agreements, the output increased by 1% and revenue fell slightly by 1% in a year-on-year comparison. This effect is also reflected in the slight decline of the ratio of revenue to output from 92% to 91%. The operating segments North + West contributed 41%, South + East 41% and International + Special Divisions 18% to the revenue.
The changes in inventories mainly involve real estate project developments. New project developments more than compensated for successful sales in the reporting period. The own work capitalised relates to the construction of Group locations and remained nearly unchanged year-on-year. The total of expenses for construction materials, consumables and services used and employee benefits expense, expressed in relation to revenue, fell from 90% to 88%.
Expenses
€ mn | 2024 | 2023 | Δ % |
Construction materials, consumables and services used | 10,463.01 | 11,275.08 | -7 |
Employee benefits expense | 4,905.50 | 4,540.90 | 8 |
Other operating expenses | 1,115.28 | 1,086.60 | 3 |
Depreciation | 582.29 | 538.12 | 8 |
The earnings from equity-accounted investments rose moderately to € 148.72 million in the reporting period due to higher earnings from joint ventures. The net income from investments, which comprises the dividends and expenses of many smaller companies and financial investments, increased compared to the previous year. This is partly due to positive earnings from the sale of investments.
Development of EBITDA and EBITDA margin
In total, the earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 16% to € 1,644.18 million. In a year-on-year comparison, this corresponds to a noticeable increase in the EBITDA margin from 8.0% to 9.4%. In line with the higher investments as part of the Strategy 2030, depreciation and amortisation expense increased as expected by 8% to € 582.29 million.
The earnings before interest and taxes (EBIT) exceeded the € 1.0 billion mark for the first time in 2024, amounting to € 1,061.89 million. This resulted in a significant increase in the EBIT margin from 5.0% to 6.1%. The EBIT margin in the 2024 financial year was considerably higher than originally projected, mainly due to positive earnings effects in the North + West segment and – compared to the previous year – lower negative effects on earnings in the volatile international project business.
The net interest income again rose sharply year-on-year, increasing from € 44.13 million to € 75.42 million. This growth was primarily due to the higher interest income, caused by the continued high interest rates in 2024 and STRABAG SE’s high net cash position. The exchange rate result included in this figure tended towards zero in 2024 at € -0.4 million (2023: € -15.90 million).
27.2%
Effective tax rate
On balance, the earnings before taxes amounted to € 1,137.31 million. The income tax rate was 27.2%, considerably lower than in the previous year. This was due to a lower shortfall in tax relief on large-scale projects. The net income totalled € 828.33 million, up 31% from the previous year’s level.
€7.35
Earnings per share
The earnings owed to minority shareholders totalled € 5.33 million, compared to € 2.89 million in the previous year. The net income after minorities increased by 31% to € 823.00 million, the highest figure since the company’s inception. The earnings per share amounted to € 7.35 (2023: € 6.30).
Development of ROCE
The return on capital employed (ROCE) saw another significant increase, growing from 12.2% in the previous year to 14.5%. This is the highest value in the history of STRABAG SE.