Hungarian companies closely associated with the prior administration are re-evaluating project pipelines and reducing exposure to major developments after Péter Magyar’s election victory brought an end to Viktor Orban’s 16-year rule. The incoming government has promised a review of contracts awarded under the previous administration and said it will address alleged favouritism in public procurement.
Construction firms that depended heavily on state-funded infrastructure work are among the most affected, as more competitive tendering could shrink a reliable revenue source. Market Epito, identified as one of Hungary’s largest construction companies, said it will move away from very large developments toward a portfolio with a higher number of smaller housing and infrastructure projects. The company noted that roughly one-quarter of its revenue has historically come from public contracts. While Market Epito has links to Orban ally Istvan Garancsi, it asserted that its financial strength and business mix do not rely solely on political cycles.
Another major player, Duna Aszfalt, Hungary’s largest road-construction company, said it would be prepared to compete under the altered procurement framework. Magyar’s government has suspended an extension of a motorway in southern Hungary and asked Duna Aszfalt to repay funds it received for that project before the election.
Procurement practices under the Orban government had drawn scrutiny. A 2024 OECD survey found Hungary recorded a high rate of tenders that attracted only a single bidder. In June, Parliament received broad anti-corruption legislation aimed at improving transparency in the use of public money. Reforms to boost competition in public tenders are also among the European Union’s conditions for releasing funds that were suspended over rule-of-law concerns.
The market reaction has been uneven. Shares of companies widely viewed as politically connected - including Opus Global, Appeninn, 4iG and MBH Bank - have fallen sharply as investors removed valuation premiums that had been linked to perceived influence under the former administration. Those losses have taken place even as a broader rally in Budapest-listed stocks gained traction, driven in part by expectations that clearer and more open tendering could draw foreign investment.
Analysts warned that some businesses whose models were built around preferential access to state contracts may face serious challenges and, in some cases, may not survive the transition to a more competitive procurement environment. They also suggested that international firms could win a larger share of opportunities in sectors such as construction, defence, telecommunications and media as contracts are reopened to wider competition.
Context and next steps
The policy direction signaled by Magyar’s government - including contract reviews and steps to curb alleged favouritism - is already prompting strategic shifts among companies whose revenue streams were intertwined with state procurement. How quickly procurement becomes more competitive and whether legislative changes produce lasting transparency will determine how rapidly these companies adjust and how market share evolves across affected sectors.