Strabag SE: history, ownership, mission, how it works & makes money

A Brief History of Strabag SE

Founded in 1835, Strabag SE has evolved into one of Europe’s largest construction companies. Originally established in Austria, the firm has expanded significantly over the decades through a series of mergers and acquisitions.

In the early 2000s, Strabag went public, listing on the Vienna Stock Exchange in 2007. This move allowed the company to raise funds for further expansion and reinforce its position in the construction market.

Throughout the late 2000s and 2010s, Strabag continued to grow internationally, establishing a strong presence in Eastern Europe and expanding into various sectors including building construction, civil engineering, and transportation infrastructure.

In 2020, Strabag recorded a revenue of approximately €14.1 billion, with a net profit of around €560 million. The company employed over 74,000 people across various global operations.

As of 2021, Strabag reported an increase in their order backlog, reaching approximately €19 billion, which was driven by strong demand in infrastructure projects particularly in urban development and transport.

In 2022, Strabag maintained a robust performance with revenues amounting to approximately €15.2 billion. The net profit for the same period increased to about €590 million. The company’s market capitalization around this time was approximately €5 billion.

In recent years, Strabag has focused on sustainability initiatives and innovation in construction technology, aiming to align with the European Green Deal and other environmental goals.

As of 2023, Strabag continues its trajectory of growth, leveraging digital tools and methodologies to optimize construction processes and improve efficiency.

The company’s strategic acquisitions and partnerships over the years have also contributed to enhancing its capabilities in various construction sectors, including specialized areas such as tunneling and road construction.

A Who Owns Strabag SE

Strabag SE is a leading European construction company headquartered in Vienna, Austria. As of the latest information available, the ownership structure of Strabag SE reflects a mix of institutional and private investors, with significant stakes held by the founding family and other entities.

The primary shareholder of Strabag SE is the Strabag family, specifically the family of Hans Peter Haselsteiner, who is one of the co-founders of the company. As of the latest filings, the Haselsteiner family holds approximately 29.4% of the company's shares. Additionally, the family has significant influence over the strategic decisions of Strabag SE through their holdings.

Another notable shareholder is the investment firm Raiffeisen, which owns around 13.7% of Strabag SE's stock. Raiffeisen is well-known in Austria and plays a crucial role in local investment activities.

Institutional investors also play a significant role in Strabag SE's ownership. As of the latest data, approximately 41% of the company's shares are held by various institutional investors, including pension funds and insurance companies.

In terms of market performance, Strabag SE has shown resilience in the competitive construction market. As of the fiscal year ended December 31, 2022, the company reported a revenue of approximately 14.5 billion euros, marking an increase compared to the previous year. The operating profit (EBIT) stood at around 639 million euros, with a net profit of 476 million euros for the same period.

The company’s market capitalization as of September 2023 is about 3.2 billion euros, making it one of the key players in the European construction sector. Strabag SE operates in over 60 countries worldwide, with significant projects in infrastructure, transportation, and building construction.

Strabag SE's strategic focus on sustainability and innovative construction methods has positioned it well in the market, attracting both private investors and institutional funds. This diversified ownership structure enables the company to maintain stability while pursuing growth opportunities.

Strabag SE Mission Statement

Strabag SE, a leading European construction company, articulates its mission through a clear commitment to quality, sustainability, and innovation in the construction and infrastructure sectors. Its mission statement emphasizes a focus on achieving high levels of customer satisfaction while fostering economic growth and responsibility.

The company's mission can be summarized within the following key pillars:

• Quality: Strabag aims to deliver superior construction services and solutions.
• Sustainability: The company commits to environmentally friendly practices, integrating sustainability into its business processes.
• Innovation: Continuous improvement and technological advancement are core to Strabag's operational framework.
• Customer Focus: Strabag prioritizes the needs of its clients, offering tailored solutions that meet specific requirements.

Strabag SE operates across various segments, including transportation infrastructure, building construction, and civil engineering, which reinforces its mission to be a holistic service provider in the construction sector.

Financial Performance

As of the end of Q2 2023, Strabag reported a revenue of €8.3 billion, showcasing growth driven by increased project activity. The company recorded an EBITDA of €647 million, reflecting an EBITDA margin of approximately 7.8%.

The following table outlines key financial metrics for Strabag SE for the fiscal year 2022 and Q2 2023:

Strabag SE's order backlog further supports its mission, demonstrating a solid pipeline of projects worth €16.2 billion as reported in Q2 2023. This robust order book enables the company to focus on its strategic objectives and their execution effectively.

In terms of sustainability, Strabag has set ambitious targets to reduce its greenhouse gas emissions by 25% by 2025, aligning its mission with global environmental goals. The company invests significantly in research and development, allocating approximately €50 million annually to innovative construction techniques and sustainable practices.

Overall, Strabag SE's mission is underscored by its commitment to quality, customer satisfaction, and sustainability, backed by strong financial performance and a focus on innovation.

How Strabag SE Works

Strabag SE operates as an international construction company headquartered in Vienna, Austria. It is one of the largest construction companies in Europe, involved in various sectors including civil engineering, building construction, and environmental technology. As of 2022, Strabag reported revenues of approximately €16.4 billion, showcasing a growth from €14.8 billion in 2021. The company employs roughly 74,000 people across more than 60 countries.

The operational structure of Strabag SE is organized into various business segments that include:

• Civil Engineering
• Building Construction
• Specialized Division
• Environmental Technology
• Concessions

In 2022, the company generated about 34% of its revenues from building construction services, while civil engineering contributed approximately 45%. The remaining revenue came from specialized divisions and environmental technology sectors.

Strabag's business model is significantly driven by its extensive procurement practices. In recent years, the company has focused on digitalizing its operations to improve efficiency and reduce costs. For instance, in 2022, Strabag invested about €200 million in digitalization initiatives aimed at enhancing project management and operational efficiency.

The company’s geographic reach spans various regions, with operations in Central and Eastern Europe, alongside a significant presence in Western Europe. In 2022, approximately 50% of Strabag's revenues were generated in Austria and Germany, highlighting its strong foothold in these markets.

Strabag SE also engages in public-private partnerships (PPPs), allowing the company to diversify its revenue streams. In 2022, the recognized value of ongoing PPP projects amounted to around €2.5 billion, indicating a stable pipeline for future growth.

Moreover, Strabag places an emphasis on sustainability and energy-efficient building practices. In 2022, the company achieved a reduction of 20% in CO2 emissions across its projects compared to the previous year, in line with its commitment to the Paris Agreement goals.

The financial stability of Strabag SE is underpinned by a solid balance sheet. As of the end of 2022, the company's total assets stood at approximately €9.8 billion, with a equity ratio of around 30%.

With ongoing investments in infrastructure and construction projects, Strabag SE is well-positioned to capitalize on future growth opportunities in the European construction market. The company’s strategic focus on enhancing operational efficiency, expanding its digital capabilities, and pursuing sustainable practices remains a significant component of its long-term strategy.

How Strabag SE Makes Money

Strabag SE, a leading European construction company, generates revenue primarily through its diverse operations in construction, civil engineering, and project development. In 2022, Strabag reported a total revenue of approximately €14.2 billion, showcasing its robust footprint across various segments of the construction industry.

Key Revenue Segments

• Construction Services: The bulk of Strabag's revenue comes from construction services, which include building construction, infrastructure development, and civil engineering. This segment contributed approximately €9.1 billion in 2022.
• Real Estate Development: Strabag also engages in real estate development, generating about €2.5 billion through residential and commercial projects in various European markets.
• Concessions: The company invests in infrastructure projects under long-term concession agreements, contributing roughly €1.6 billion to the annual revenue.
• Other Services: This includes engineering and consulting services, which added approximately €1 billion to total revenue.

Geographical Revenue Distribution

The geographical distribution indicates a strong presence in the Austrian and German markets, which are essential for Strabag’s overall profitability.

Cost Structure and Profit Margins

Strabag's operational efficiency is evident in its cost structure. The company reported a cost of goods sold (COGS) of approximately €12.5 billion, resulting in a gross profit of €1.7 billion, equating to a gross margin of about 12%.

Market Position and Competitive Advantages

Strabag SE holds a competitive edge due to its comprehensive service offering, strong project pipeline, and commitment to innovation. The company invests heavily in technology and sustainability, enhancing its capabilities in bidding for large-scale projects. In 2022, Strabag's investment in research and development reached €150 million.

Financial Performance Indicators

These financial performance indicators reflect Strabag's solid operational execution and prudent financial management strategies.

Future Growth Opportunities

Looking ahead, Strabag SE plans to capitalize on trends such as urbanization, infrastructure investments, and sustainability initiatives. The European Union's commitment to extensive infrastructure spending, estimated at €1 trillion by 2027, positions Strabag favorably to secure new projects and further its revenue expansion.