In 2023, Poland's leading 40 construction firms witnessed a significant increase in their revenues, reaching nearly 80 billion PLN. This growth, marking the third consecutive year of double-digit increases, was primarily driven by the overall rise in construction costs. The continuation of this upward trend hinges on the timely allocation of EU funds to Poland, including those from the National Recovery Scheme and the 2021-2027 cohesion policy budget.
The combined revenue of these top 40 construction entities was 67 billion PLN in 2022, accounting for 30% of the total revenue of medium and large construction firms, as per the “Construction companies in Poland 2023-2028” report by Spectis. With civil engineering performing better than anticipated and high inflation in the construction sector, these companies reported a nominal revenue increase of about 14% in 2023, achieving a record-breaking 77 billion PLN.
Despite this growth, the Polish construction industry remains considerably fragmented, with slow-moving consolidation. In 2022, the market leader, Budimex Group, held a 3.9% share of the total revenue generated by firms with over nine employees, a decrease from 4.7% two years prior. The top five groups – Budimex, Strabag, Porr, Erbud, and Polimex-Mostostal – constituted 11.4% of the revenue from construction companies with over nine staff members.
Significant projects in civil engineering are bolstering the sales of leading construction companies. Spectis' review of ongoing projects shows that companies like Budimex, Polimex-Mostostal, Intercor, Porr, Strabag, Mirbud, Gulermak, and Mostostal Warszawa are involved in high-value contracts, especially in large-scale road, railway, and power engineering. In the non-residential sector, Porr, Adamietz, Budimex, Warbud, Skanska, Mirbud, Strabag, Dekpol, and Kajima lead in contract values, while Unibep, Skanska, and Erbud dominate residential construction.
To be among the top 40 groups in 2021, companies needed over 500 million PLN in revenue, which increased to around 650 million PLN in 2022. To rank in the top 250 in 2022, over 120 million PLN in revenue was necessary.
The construction sector's financial performance in recent years reflects its unpredictability, marked by fluctuations in large-scale orders annually. Most major companies specialize in specific construction areas like industrial, railway, bridge, or tunnel construction, making them sensitive to market changes.
In 2023, construction companies faced challenges like reduced large-scale public orders, high inflation, and a downturn in residential construction. Consequently, the largest firms' order backlog growth stagnated. However, signs of improvement emerged in late 2023, potentially boosting contracting activities in 2024.
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