Polish Construction Companies 2024 - Major Players, Key Growth Drivers and Development Prospects
12th edition, November 2024
You are welcome to read the 12th edition of the report: “Polish Construction Companies 2024 - Major Players, Key Growth Drivers and Development Prospects.
In 2023 revenues of the fifteen largest construction companies reached almost PLN 46.2 billion, up by 3.6% compared with the previous year. This slight increase in revenues, despite the high base of the previous year, reflects the scale of the market, but is also due to macro- and micro-economic factors (inflation and the apparent slowdown in the sector). Unfortunately, we are seeing a significant reduction in the supply of projects in many segments, particularly residential, commercial and warehousing. The persistence of high interest rates in these segments continues to play a role, discouraging investors from pursuing new projects. The reduction in project supply has been partly offset in 2023 by ongoing infrastructure projects, but the above factors have affected the revenues of companies that do not have much portfolio diversification.
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Key findings:
1. In 2023 revenues of the fifteen largest construction companies reached almost PLN 46.2 billion, up by 3.6% year-on-year. As in previous years, the Budimex Group was the leader of the ranking with revenues of PLN 9.8 billion, an increase of 13.7% vs. 2022. The Strabag Group came second with revenues of PLN 5.8 billion (up by about 13.5% vs. 2022). The PORR Group took the third place with revenues of PLN 4.5 billion (up by 15% vs. 2022).
2. For the 15 largest construction companies, the average operating margin fell by PLN 8.6 million (-4.2% YoY). The Budimex Group (over PLN 1.1 billion) and the Mirbud Group (PLN 336 million) achieved the highest results. The highest nominal growth in 2023 was recorded by the Trakcja PRKiI Group, which improved its result by PLN 293 million, i.e. by more than 205%, which also put the Group in first place in terms of the percentage increase in operating income.
During the slowdown observed in the construction sector in 2024, publicly funded infrastructure projects are becoming increasingly important, as they partially help bridge the supply gap that has visibly deepened in the current period. Unfortunately, due to the macroeconomic situation and uncertainties related to the global economy, as well as considering our local budgetary challenges in Poland, the sector faces significant challenges—not only in filling the backlog but also in maintaining positive contract margins.
– says Łukasz Michorowski, Partner, Audit CE A&A ESG & Construction, Deloitte .
3. The value of the construction market in 2023 was PLN 338.8 billion, an increase of 16.1% in current prices compared to 2022. As in previous years, the increase in construction and installation output was significantly impacted by the implementation of infrastructure investments financed by EU funds. Nevertheless, the economic situation in the various segments of the construction market varied. In 2023, a key driver of construction output growth was the specialised construction sector (up 24.3% year on year).
4. Despite the many challenges facing the construction industry, there are signs of hope for improvement. According to a survey conducted by Deloitte, the full results of which are presented in our report, in the short-term forecast for 2024, the largest group of respondents (49%) indicated that economic conditions would improve slightly, while only 2% believed that the situation would deteriorate significantly. Only 4% of respondents selected answers suggesting a significant improvement in market conditions. Meanwhile, 24% of those surveyed stated that economic conditions would remain unchanged. For comparison, respondents in the 2023 survey identified short-term economic trends in a similar manner.
Polish Construction Companies 2024
Major Players, Key Growth Drivers and Development Prospects
