(ABM FN-Dow Jones) Construction company BAM saw turnover and profit decline in the first quarter. This emerged from the builder’s quarterly figures on Thursday.
The adjusted operating result before interest, taxes, depreciation, amortization, restructuring costs, write-downs and a one-off pension effect fell from 57.9 million to 44.0 million euros. This meant a decline in the margin from 4.0 to 3.1 percent. The adjusted margin for the 2023 financial year was still 4.9 percent.
The contribution of the Netherlands division was slightly higher than in the first quarter of 2023, supported by an improved performance of residential development and construction and the continued good contribution from infrastructure activities. The
contribution from the United Kingdom and Ireland division was lower because of the performance of Construct UK
were affected by project delays, which more than offset the good performance of the British infrastructure activities,” said CEO Huub Joosten.
Joosten emphasized the positive development of the order book, which increased by 10 percent to 10.7 billion euros. “We continue to focus on margin over volume.” BAM’s turnover fell on an annual basis from 1.45 billion to 1.41 billion euros
ING had expected that BAM would record an EBITDA of 57 million euros in the past quarter with a margin of 4.0 percent and a turnover of approximately 1.4 billion euros.
According to the builder, market conditions remain challenging in the short term due to higher interest rates and (geo)political uncertainties. For the whole of 2024, BAM expects an adjusted EBITDA margin within the strategic bandwidth of between 4 and 6 percent.
BAM previously issued an outlook of an adjusted EBITDA margin of 4 to 6 percent for the period 2024 to 2026.
The capital ratio improved further to 25.2 percent at the end of the quarter compared to 23.4 percent at the end of 2023. BAM called the liquidity position solid at 0.5 billion euros.
Source: ABM Financial News
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