Segment Report

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, revenue and EBIT

Order backlog

Employees

The number of employees in the segment increased by 3% year on year to 23,837 FTEs. Supported by the positive order trend and the acquisition of the Stumpp Group, headcount increased particularly in Germany.

Outlook

At the same time, insufficient municipal budgets, persistently intense price competition and rising prices for petroleum-based products remain significant challenges. If planning and approval procedures can be accelerated, including through alternative contract models, the € 500 billion off-budget infrastructure fund provided by the German federal government could begin to stimulate demand from late 2026 or early 2027 at the earliest.

Following the sharp declines of recent years, the residential construction market is showing initial signs of recovery. Although private households and property developers remain cautious owing to uncertainty surrounding the funding landscape and continuing geopolitical risks, investment is expected to increase as a result of the Special Fund for Infrastructure and Climate Neutrality.

Competitive pressure remains intense in the Benelux countries. STRABAG continues to respond to this market environment with a highly selective bidding strategy. In the Netherlands and Belgium, the Group sees opportunities in industrial construction, particularly in projects related to the energy transition. Demand in the residential construction market is also showing a slight increase.

In Scandinavia, the consolidation and stabilisation measures already initiated are continuing. STRABAG’s focus remains on medium-sized projects, primarily in commercial and industrial construction.

In Switzerland, demand for construction services remains stable. The necessary investments have been made to continue pursuing the growth strategy already underway.

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, revenue and EBIT

Order backlog

Employees

The number of employees in the segment remained largely stable in the first half of 2026 at 25,316 FTEs. Headcount was increased primarily in Poland, Croatia, Romania and the Czech Republic to support project delivery. By contrast, employee numbers declined in Austria and Hungary.

Outlook

In Poland, sustained high levels of public investment continue to drive a noticeable upturn in the infrastructure market, particularly in mobility. Tender volumes in rail and road construction have risen significantly and further large-scale projects are expected in energy and defence infrastructure. Investment in building construction is also beginning to recover gradually following the subdued market conditions of recent years. To capitalise on the anticipated increase in investment over the coming years, STRABAG is pursuing targeted acquisitions to expand and deepen its value chain.

In Hungary, the market environment is expected to improve somewhat following the change of government and the partial release of EU funding. Public investment activity, however, continues to be constrained by the conditions attached to the release of these funds, the subdued economic environment and the country’s strained public finances. Positive developments include contracts from the automotive manufacturing industry and its suppliers, as well as foreign direct investment in battery technology and digital services. Further investment in road, water and energy infrastructure is also expected over the coming years.

In the Czech Republic, tender volumes in transportation infrastructures remain at a high level. The rail sector in particular continues to show positive market momentum, with tenders worth around € 3.6 billion planned for 2026. In addition, the Czech building construction market is becoming increasingly important for STRABAG.

In Slovakia, investment in transportation infrastructures is expected to increase from 2026 onwards in the run-up to the municipal elections, although this market in particular continues to be characterised by intense competitive and pricing pressure. Several major rail and bridge construction projects are expected to be tendered, including schemes to be delivered as public-private partnerships (PPP). In building construction, a recovery is anticipated in both the industrial and residential sectors.

In South-East Europe, rail construction and defence infrastructure are becoming increasingly important areas of business. While cross-border rail links are being expanded in the Western Balkans, rising investment in military dual-use infrastructure can be observed in the region’s NATO member states. At the same time, the region is also seeing a growing presence of competitors from outside Europe, particularly from China and Turkey. The increasing emphasis on EU-compliant procurement procedures and environmental and social standards in EU- and IFI-funded projects is a positive development.

In Croatia, supported by EU funding, the current focus is on mobility infrastructure, with particular emphasis on rail construction. In Slovenia, high levels of public spending combined with EU-backed investment programmes are generating stable growth momentum for the construction sector, particularly in infrastructure and residential construction. Romania remains a promising growth market with substantial infrastructure investment needs. These are being addressed, among other measures, through EU-funded investment programmes that are also supporting the rapidly expanding rail infrastructure market. To strengthen its market position, STRABAG in June 2026 announced the planned acquisition of rail construction specialist BAWI Construction, which generates annual output of around € 60 million. At the same time, market development is being constrained by fiscal measures aimed at reducing the government budget deficit.

The building materials activities bundled within the South + East segment continue to show a stable overall trend despite increased price volatility and are of strategic importance to the circular economy action area under Strategy 2030.

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, Italy, Australia and STRABAG Hold Estate (real estate portfolio management).

Output, revenue and EBIT

Order backlog

Employees

The number of employees in the International + Special Divisions segment increased by 4% to 23,492 FTEs. The increase reflects both positive business performance and inorganic growth and was particularly evident in the United Kingdom, the Middle East and India, where the acquisition of M&E services engineering specialist Orbittal contributed to higher headcount. In the Americas, headcount declined as major projects progressed.

Outlook

The international business continues to focus on its long-established markets in the Middle East (United Arab Emirates and Oman) and South America (Chile). In South America, contracts in the mining sector in particular are ensuring a high level of capacity utilisation. The short- and medium-term outlook remains positive.

At the end of February 2026, the United States and Israel launched air strikes against Iran, which were followed by Iranian retaliatory attacks across the region. STRABAG has no operations in Iran, but it is active in the United Arab Emirates and Oman. Following the acquisition of WTE Wassertechnik GmbH, Kuwait has been added as a further market. At the time of preparing this report, no damage to the Group’s facilities had been reported in these regions. While ongoing projects have so far experienced only limited disruption, delays in contract awards could weigh on business development in the region. At the time of reporting, it is not yet possible to reliably assess the medium-term consequences of the conflict, including the potential impact of higher energy prices.

In the United Kingdom, where STRABAG has successfully delivered project-based business for more than a decade, the expansion of its regional operating business is progressing as planned. Long-term contracts in both the public and private sectors are expected to create future growth opportunities in mobility, water and energy infrastructure as well as in building construction. The acquisition of Van Elle, one of the UK’s leading ground engineering companies, strengthens STRABAG’s expertise while deepening its value chain through the combination of complementary capabilities in building construction and infrastructure.

In Australia, the integration of Georgiou Group is progressing according to plan. Demand for construction services is developing as expected, enabling the order backlog to exceed € 1 billion for the first time. Several major transport infrastructure projects secured through joint ventures underline Georgiou’s growing competitiveness as part of STRABAG. Additional growth opportunities are expected from announced investments in energy infrastructure, the mining sector and infrastructure projects associated with the Brisbane 2032 Olympic Games, which are likely to further stimulate demand for construction services, particularly between 2026 and 2030.

In Energy Infrastructure, market development in the energy and water infrastructure sectors is expected to remain dynamic in 2026. This will be driven primarily by Europe-wide efforts to achieve climate targets, investment in the expansion and modernisation of water infrastructure, and national investment programmes. With the closing of the acquisition of WTE Wassertechnik GmbH in March 2026, STRABAG has become a full-service provider of integrated water management solutions. Supported by further inorganic growth, the Group intends to continue expanding the depth of its value creation.

By combining facility management and M&E expertise, Building Solutions is further strengthening its position as a full-service provider for building decarbonisation and sustainable building operations. Demand for energy management solutions continues to grow in response to high energy prices. At the same time, balancing cost pressures on the customer side with high quality standards and the availability of qualified personnel remains challenging. To further develop and expand the Group’s M&E capabilities, STRABAG is pursuing acquisitions in Austria, Germany and Central and Eastern Europe.

Within Infrastructure Development, one key project is the Haweswater Aqueduct Resilience Programme (HARP) in the United Kingdom. In line with Strategy 2030, the Group is also increasingly developing and delivering photovoltaic, wind energy and battery energy storage system (BESS) projects in Germany and Colombia, while continuing to advance further concession projects across its core markets.

In Real Estate Development, the anticipated economic recovery in Germany and Austria is expected to mark the end of the market downturn, although a significant recovery in commercial real estate transactions is not expected before 2027. At the same time, a supply shortage is becoming increasingly apparent, particularly in the affordable housing segment, while consolidation among developers and property companies continues. STRABAG has expanded its activities here primarily in residential and residential-related asset classes.

Over recent years, STRABAG Hold Estate has established a strong market position and has broadened the Group’s service portfolio to include the long-term strategic holding of non-operational real estate assets. Following acquisitions in the office, residential and hotel asset classes, primarily in Germany and Austria, the future focus will shift towards Central and Eastern Europe, with an increased emphasis on residential properties. The acquisition of the Olivia Star landmark office tower in Gdańsk marked the Group’s entry into the Polish market in July 2026.

Segment Other