GDANSK (Reuters) -Poland’s biggest construction and engineering company Budimex reported a 4.0% drop in first-quarter net profit to 114.3 million zlotys ($30.3 million) on Thursday, as harsh weather affected sales of construction and assembly services in Central and Eastern Europe.
WHY IT’S IMPORTANT
Budimex is one of the certified partners of military investments in Poland. The company said in March that it wanted to actively participate in the country’s military investments.
“In total, since 2022 we have made a turnover of almost 2.0 billion zlotys on military contracts,” Budimex board member Cezary Lysenko said during a press conference on Thursday.
At its full-year results press conference in March, he said the company had an order backlog worth 18 billion zlotys.
Lysenko added that the scale is now tipping towards commercial construction with planned 2025 turnover from military contracts of almost 0.5 billion zlotys, about 25% of the turnover of the general construction division.
The company, which is preparing to carry out orders for the construction of a nuclear power plant in Poland, hopes to obtain further military contracts – including infrastructure and accompanying architecture.
CONTEXT
The company said in February that in the coming quarters, the priority will be the execution of its record order book and scaling of businesses in foreign markets.
In the coming year, it expects foreign markets’ share of group revenue to continue to rise.
BY THE NUMBERS
Budimex’s first-quarter operating profit fell to 110.9 million zlotys from 115.0 million zlotys a year earlier.
Sales revenue for the first three months of the year remained flat year on year at 1.64 billion zlotys.
($1 = 3.7798 zlotys)
(Reporting by Anna Banacka; Editing by Mrigank Dhaniwala and Ewan Harwood)
