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WSE-listed construction contractors and suppliers of building materials report low profitability in Q1 2024

16 cze 2024

18 construction groups listed on the WSE delivered sluggish aggregate revenue performance in the last four quarters. However, their aggregate net profit improved to a little over PLN 1bn in the period under review. Profit margins reported by the listed construction companies are still lower compared to figures delivered by home developers. Margins posted by suppliers of building materials and construction equipment dropped substantially over the past year.

The findings of "Construction Market in Poland – June 2024", the latest monthly report released by Spectis, reveal that the aggregate revenue of 18 construction groups whose shares are listed on the WSE totalled PLN 32.9bn in Q2 2023-Q1 2024, compared to the revenue of PLN 32.5bn registered a year earlier, up by a little over 1% in nominal terms. Stagnation in terms of revenue is primarily due to a persistently weak market situation in building construction and a brief slowdown in civil engineering. The aggregate net profit of the analysed companies in the period under review amounted to PLN 1.07bn, as compared with PLN 0.7bn a year earlier.

The net financial result generated by the construction companies translated into a net return on sales of 3.3% compared with 2.1% a year earlier. Suppliers of building materials and construction equipment recorded a substantial decline in terms of profitability, down from 7.3% in the previous year to 3.6% in Q1. Profitability of other home developers remained solid, standing at 14.1%, but it also sustained a significant drop from 21% in the previous year.

Net profit posted by WSE-listed construction companies was largely driven by the continued strong profitability recorded by the Budimex Group, which is the largest construction company in Poland. The industry’s strong financial performance was also boosted by results posted by both Mirbud and Dekpol, which reported net profit increases over the past year. It was also helped by the Rafako Group’s successful attempt at reducing financial losses.

From among property developers listed on the WSE, Dom Development, Atal, Develia, Archicom, and Murapol posted the highest net profit margins in the past four quarters. In terms of value, the strongest profit improvement was registered by Archicom, Lokum Deweloper, and Ronson. On the other hand, significant profit losses were recorded by PHN, Warimpex, and MLP Group.

As far as producers and suppliers of building materials and construction equipment are concerned, in the past four quarters, the Kety Group recorded the highest net financial profits. It accounted for over a half of the profits generated by all the suppliers. Robust profit figures in excess of PLN 50m were also delivered by Sniezka, Selena, Decora, Cognor Holding, Ferro, and Pekabex.

For more information about quarterly results of market players, see our monthly reports "Construction market in Poland".

Long-term financial results, ongoing contracts, and market strategies of the leading contractors can be found in the report entitled "Construction companies in Poland 2024-2029".

Sales figures, ongoing projects, and market strategies of the leading property developers can be found in the report entitled "Residential property developers in Poland 2024-2029".


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