Letter from the CEO

Dear shareholders,
associates and friends of STRABAG SE,

“Doing is like wanting, only better.” It is with this drive that we tackle the major issues of our time. As one of Europe’s leading construction companies, our ambition is to deliver solutions to the key challenges – from infrastructure needs and the shortage of affordable housing through to high-tech buildings in industry and healthcare. A look back at the past year shows how this ambition translates into results.

2025 was a dynamic and highly successful year for STRABAG, and we reached several historic milestones: our output volume exceeded € 20 billion for the first time, our order backlog rose to more than € 30 billion and our EBIT margin reached an all-time high of 6.7%. This development makes me proud. Once again, we were able to more than offset challenging trends in individual segments – thereby underlining the resilience of our business model. Examples include the delayed budget resolution following the federal elections in Germany, a lack of municipal funding in Austria and a housing construction market that remained subdued.

We reached several historic milestones in 2025.

Stefan Kratochwill

This kind of success does not come about by itself. It is first and foremost the result of hard work and daily top performance by our 89,000 colleagues worldwide. At the same time, it shows that our strategic focus is on the right topics and regions – and that we are steadily advancing them as part of our Strategy 2030.

In 2025 and in the course of 2026 to date, we have taken decisive steps forward. We initiated the build-up of an energy and water division and, with the acquisition of WTE Group, have become a full-service provider for water infrastructure. In addition, we developed serial solutions for affordable housing and are driving the circular economy through investments in value stream centres. With the acquisition of Georgiou Group, we successfully entered the Australian market. Beyond our established core business in Europe, this provides STRABAG with a strong foundation for future growth and strengthens the Group’s long-term resilience through broader geographical diversification.

By focusing on mobility infrastructure, energy and water infrastructure, high-tech facilities and building decarbonisation, we are targeting markets with structural growth – markets that made a significant contribution to the increase in our order backlog in 2025. Among other things, we are modernising the Maksymilianowo railway hub in Poland, delivering megaprojects for the semiconductor industry and implementing a major water infrastructure project in the United Kingdom.

The positive operating performance was also reflected on the capital markets. The STRABAG share price more than doubled in 2025 and was included in the Austrian benchmark index ATX in September – an important step that further increases our visibility among international investors.

Based on the positive developments in the past year, the Management Board will propose a dividend of € 2.90 per share to the Annual General Meeting on 12 June 2026. This corresponds to an increase of 16% compared with the previous year and a dividend yield of 4.1%, based on the average share price for 2025.

In 2026, we are optimistic about opportunities, particularly in the infrastructure sector.

Stefan Kratochwill

Looking ahead to 2026, we remain confident despite ongoing geopolitical tensions. We see significant opportunities, particularly in infrastructure expansion in Germany. As the market leader, with around 40,000 employees, a dense building materials network and comprehensive geographic coverage, we are ideally positioned to actively help shape the modernisation of infrastructure. We also expect continued strong momentum in our core markets in Eastern Europe. Overall, we anticipate an output volume of around € 22 billion for 2026 and an EBIT margin of between 5.0% and 5.5%.

My personal thanks go to all colleagues and co-workers who are taking this path with us – with commitment, courage and a willingness to take responsibility every day.

I would also like to thank our customers and partners, and you, our valued shareholders, for your trust.