Segment report

Overview of the four segments within the group

In 2025, the business of STRABAG SE was divided into four segments: the three operating segments North + West, South + East and International + Special Divisions, as well as the segment Other, which comprises the Group’s central divisions and central staff divisions. In 2025 and to date in 2026, the segments were composed as follows:

Construction projects are assigned to one of the segments (see chart below). Projects may, of course, be assigned to more than one segment. This is the case, for example, with PPP projects, where the construction component is reported in the respective geographical segment, while the concession component is shown in the concessions unit of the segment International + Special Divisions. In projects spanning more than one segment, commercial and technical responsibility generally lies with the segment that has the higher share of the overall project value.

Segments are primarily categorised according to geographical aspects. Specialist activities in particular – such as tunnelling – are naturally in demand worldwide and are therefore shown in the segment International + Special Divisions. At the same time, cross-border business fields such as ground engineering or construction materials are also found in the segments North + West and South + East. These are predominantly organised from a country within the respective geographical segment.

Certain services may be provided in more than one segment. In the following, activities are assigned to the segment which the most significant portion of the services was provided. Details can be found in the table.

With only a few exceptions, STRABAG offers services across all areas of the construction industry in the individual European markets in which it operates, covering the entire construction value chain.

Range of services offered

Segment North + West

The North + West segment delivers construction services of nearly any kind and size with a focus on Germany, Switzerland, the Benelux countries and Scandinavia. Ground engineering can also be found in this segment.

Output volume – North + West segment

Output, revenue and EBIT

Revenue rose in line with output by 4% to € 7,511.87 million. EBIT increased significantly by 21% to € 840.96 million, corresponding to an EBIT margin of 11.2%, which was thus further expanded from an already very high level. This development was driven primarily by two factors in Germany: positive contributions from large-scale infrastructure projects and mild weather conditions, which led to higher capacity utilisation towards the end of the year.

Order backlog

Employees

The number of employees grew by 3% to 23,161 FTEs. The strongest increase was recorded in Germany, in line with output development. Moderate increases were also seen in the Benelux countries and Switzerland.

Outlook

In the Benelux countries, there is still strong competitive pressure. STRABAG is responding to this environment by maintaining a highly selective approach to tendering. In the Netherlands and Belgium, the company is seizing initial opportunities in industrial construction, particularly in projects relating to the energy transition. Demand in the residential construction market has also increased slightly.

In Scandinavia, the consolidation and stabilisation measures already initiated are being continued. Significant growth is expected in both the Danish and Swedish construction markets in 2026. STRABAG’s focus is on medium-sized projects, primarily in commercial and industrial construction.

In Switzerland, demand for construction services remains stable. The necessary investments have been implemented to continue on the growth path that has been embarked upon.

Selected projects – North + West segment

Segment South + East

The geographic focus of the segment South + East is on Austria, Poland, the Czech Republic, Slovakia, Hungary, Romania and South-East Europe. The construction materials activities are also handled within this segment.

Output volume – South + East segment

Output, revenue and EBIT

Order backlog

Employees

The number of employees declined slightly by 2% to 26,218 FTEs in the 2025 financial year. While Austria saw reductions, Poland and the Czech Republic expanded staff numbers in line with the higher output.

Outlook

In Poland, the release of EU funding has led to a perceptible increase in public investment activity, particularly in mobility infrastructure. Tender volumes in rail and road construction have risen significantly and further large-scale projects are expected in energy and defence infrastructure. With the acquisition of ZABERD, STRABAG has also positioned itself as a leading company in the field of road maintenance. In building construction, private investment remains subdued for the time being, with public investment partially offsetting this trend. The interest rate cuts already implemented are expected to provide additional growth stimulus from 2026 onwards.

The situation in Hungary remains challenging due to withheld EU funds and lower public investment activity in the run-up to the 2026 parliamentary elections. Positive developments can be seen in contracts from the automotive manufacturing industry and its suppliers as well as in foreign direct investment in battery technology and digital services. In the coming years, investments are also expected in road, water and energy infrastructure.

In the Czech Republic, a significant increase in tender volumes can be observed in transportation infrastructure. The rail sector in particular is showing positive market momentum, with further tenders totalling around € 3.6 billion planned for 2026. The tender situation in energy and water infrastructure is also developing favourably. Against the backdrop of declining interest and inflation rates, increasing private investment activity can be expected.

In Slovakia, increased investment in transportation infrastructure is anticipated from 2026 onwards in connection with the upcoming municipal elections, although noticeable competitive and price pressure persists, particularly in this area. Several large-scale projects are expected to be put out to tender in rail and bridge construction, including schemes structured as public-private partnerships. In building construction, a recovery is anticipated in industrial and residential construction.

Overall, the development of demand in the markets of South-East Europe show varying tendencies but, taken together, point to stable development. In Croatia, supported by EU funding, the current focus is on energy, water and mobility infrastructure, with particular emphasis on rail construction. In Slovenia, record-high government spending combined with EU-backed investment programmes is creating stable growth stimulus for the construction sector, especially in infrastructure and residential construction. Romania continues to be regarded as a promising growth market with considerable infrastructure needs, some of which are supported by EU-financed investment. At present, fiscal policy measures aimed at reducing the budget deficit are having a dampening effect. In South-East Europe’s markets, an increased presence of competitors can be observed from outside Europe, for example from China and Turkey.

The building materials activities that are bundled in the South + East segment are showing a satisfactory trend overall. These activities are of key importance for the action area of circularity in our Strategy 2030.

Selected projects – South + East segment

Segment International + Special Divisions

The International + Special Divisions segment comprises the majority of STRABAG SE’s non- European business in addition to its global tunnelling activities. The segment also encompasses infrastructure development, real estate development, energy infrastructure and building solutions, irrespective of where these are performed, and includes the divisions United Kingdom, Australia and STRABAG Hold Estate (real estate portfolio management).

Output volume – International + Special Divisions segment

Output, revenue and EBIT

Order backlog

Employees

The number of employees in the segment International + Special Divisions grew by 7% to 22,796 FTEs, around half of which is attributable to the Australian acquisition with more than 800 employees. In existing markets, employee numbers were increased to implement newly acquired projects, particularly in the Middle East, Austria and the Czech Republic.

Outlook

The focus of the international business is on established markets in the Middle East (United Arab Emirates, Oman and Qatar) and in South America (Chile). The short- and medium-term outlook remains optimistic. In mining, the order backlog was significantly expanded through another major contract in Chile, while in the Middle East a large-scale building construction project and road construction schemes in Oman are ensuring good utilisation. Decarbonisation projects and strong demand for raw materials in these regions are also creating growth opportunities.

On 28 February 2026, the United States and Israel launched air strikes on Iran, prompting Iranian counterattacks in the region. STRABAG does not operate in Iran, but it is active in Qatar, the United Arab Emirates and Oman. Following the acquisition of WTE Wassertechnik GmbH, the Group now also has operations in Bahrain and Kuwait. At the time this report was being prepared, no damage to the company’s facilities had been recorded in these regions. In line with official recommendations, activities were temporarily suspended or significantly reduced. The medium-term impact of the war – for example due to rising energy prices – cannot yet be assessed at the time of reporting.

In the United Kingdom, where STRABAG has been successfully active in the project business for many years, the development of a permanent local presence is progressing according to plan. Long-term contracts in the public and private sectors are intended to open up future growth opportunities in mobility, water and energy infrastructure and, more recently, in building construction.

In Australia, the integration of Georgiou Group, acquired in March, is currently under way. Demand for construction services remains stable, with foreseeable order declines in New South Wales likely to be largely offset by a rising number of major projects in Western Australia and Queensland. In addition to announced large-scale investments in state energy infrastructure, the 2032 Summer Olympics in Brisbane are expected to significantly increase demand for construction services between 2026 and 2030.

The Energy Infrastructure entity secured several significant contracts in 2025, including the construction of the world’s largest heat pump in Mannheim. For 2026, continued dynamic market development is expected in energy and water infrastructure, driven in particular by Europe-wide efforts to achieve climate targets and by national investment programmes. With the closing of WTE Wassertechnik GmbH in March 2026, STRABAG is becoming a full-service provider in integrated water management. Supported by further inorganic growth, value creation depth is to be increased further.

In March 2025, Building Solutions acquired Instalace Praha, a Czech M&E specialist with around 280 employees. Further acquisitions are being pursued in Austria, Germany and Central and Eastern Europe in order to expand Group-wide M&E expertise. By linking the facility management business with M&E capabilities, the business unit is developing into a full-service provider for decarbonisation and sustainable building operations.

In Infrastructure Development, one focal project is the Haweswater Aqueduct Resilience Programme (HARP) in the United Kingdom, which reached financial close in the reporting year. In line with Strategy 2030, photovoltaic and battery energy storage projects are being developed to increase the share of renewable energy in Germany. In addition, a portfolio of large-scale photovoltaic projects is being established in Colombia and further concession projects are being pursued in the Group’s core markets.

In Real Estate Development, the expected economic upturn in Germany and Austria suggests that the market trough is likely to have been passed, although a marked recovery in commercial property transactions is not anticipated before 2027. At the same time, a supply gap is emerging, particularly for sustainable commercial properties and affordable housing, alongside consolidation within the developer and property development sector. STRABAG has strengthened its activities, particularly in residential and residential-related asset classes, thereby positioning itself more resiliently.

Over the past three years, STRABAG Hold Estate has successfully established itself in the market and is expanding the Group’s service portfolio to include the long-term, strategic holding of non-operating properties. Following acquisitions primarily in Germany and Austria in the office, residential and hotel asset classes, the focus is now shifting to Central and Eastern Europe.

Selected projects – International + Special Divisions segment

Segment Other