Warsaw Stock Exchange-listed construction companies saw slight improvement in profit margins in 2018
08 May 2019
Aggregate revenue reported by more than 20 construction groups whose stock is listed on the Warsaw Stock Exchange grew by a nominal 9.8% in 2018, which is a meagre rise in real terms, given soaring prices of building materials and labour. Net financial performance of the listed construction companies also improved marginally, but the figure still pales in comparison to earnings achieved by property developers and suppliers of building materials and construction equipment.
03 Apr 2019
Construction companies successfully confronted looming insolvency issues in 2018. However, this does not mean that the risks have been entirely mitigated. Loss-making contracts whose prices were set at the time of increased competition will still be pursued and billed in 2019 and 2020. Nevertheless, there will be fewer of them active, and the backlogs will start to comprise mostly contracts valued conservatively.
27 mar 2019
Low interest rates combined with an investment upturn and labour shortage result in a significant upward pressure on building material prices and labour costs. Given the monetary authorities’ lenient stance and the continued growth in the construction industry, price pressures in the construction market are expected to persist throughout 2019.
04 mar 2019
The Polish construction industry enjoyed a really strong year in 2018 as most of the key performance indicators were climbing the charts of growth throughout the year, but the start to 2019 saw a substantial downturn across practically all market segments. This, however, was due to a high comparison base registered last year.
21 Jan 2019
Construction and assembly output generated by Polish construction companies in foreign markets has hit an all-time high of €1.55bn, but this is still below the potential of domestic contractors. Importantly, a considerable change to the structure of companies engaged in foreign orders took place in recent years – the centre of gravity has shifted from the biggest construction groups to smaller companies with a specialised focus.
19 Dec 2018
Profitability of 22 construction groups listed on the Warsaw Stock Exchange continued in the negative territory throughout Q3 2018. Moreover, the third quarter of the year was the second consecutive quarter that profitability reported by property developers was on the decline, though it should be noted that their earnings were still fairly decent and at a sound level when compared to contractors. On the other hand, financial results delivered by manufacturers and suppliers of building materials and construction equipment were solid.
14 May 2018
Despite unsuccessful bids to secure contracts for the construction of the Ostroleka Power Plant and the tunnel section of the S3 expressway, members of the PowerChina Group still stand a good chance of winning three orders totalling more than PLN 3bn, incl. VAT, the largest of which is the construction of the Krakow Northern Bypass.
While it is way too soon to say if expanding into the Polish market has been a successful effort, it should already be noted that if the PowerChina Group secures the three contracts, it will actually reach the top 10 of Poland’s contraction companies in terms of the order book value.
Interestingly, the company has set itself the objective of achieving the position of a leading participant of the infrastructure construction market, not only in Poland but also in Europe as a whole.
The value of the construction market in Poland expected to exceed PLN 200bn in 2018 after a record-setting 2017
09 Feb 2018
The ongoing investment upturn, which began several months ago, coupled with excellent performance towards the end of 2017 lifted Polish construction output to new heights. Output generated by Polish construction industry is expected to further climb in 2018. However, its value as a percentage of GDP is still fairly moderate.