PORR AG on Thursday published its full-year 2025 financials, highlighting cash delivery that exceeded analyst forecasts and maintaining the companys guidance for fiscal 2026.
For the full year, PORR recorded earnings before interest and taxes (EBIT) of 2 million, up 24% from the prior year. The uplift in operating profit was broad-based across regions: Germany reported a sharp 178% year-on-year increase in EBIT, while the companys International segment saw EBIT rise 113% compared with the previous year.
Free cash flow for 2025 amounted to 233 million. That figure was supported by a working capital inflow of 50 million and improved net investment cash flows. As a result, PORR ended the year with net cash of 93 million, roughly 30 million higher than analyst estimates. Management said tight control of capital expenditure helped underpin the strong cash result.
Turning to the fourth quarter details, revenue reached 1,678 million, a 6.1% increase from 1,582 million in the same quarter a year earlier. Production output for Q4 rose to 1,832 million from 1,726 million, also a 6.1% gain.
Order intake in the fourth quarter fell 12.3% to 1,819 million from 2,073 million. The decline was driven by lower volumes in Austria and Switzerland, where orders dropped 19.4%, and in International markets, which saw a 48.1% fall. By contrast, Germany posted a 38.8% increase in order intake.
Segment-level production output in Q4 diverged: Austria and Switzerland declined 10.2%, Germany rose 53.7%, and the International segment increased 14%.
Profitability in the quarter improved: the Q4 EBIT margin rose to 5.3% from 4.2% a year earlier. Net income for the quarter increased 30.9% to 56 million from 43 million, and basic earnings per share climbed to 1.45 from 1.12.
PORR reiterated its fiscal 2026 guidance, expecting moderate growth in revenue and production output alongside an improved EBIT margin. The company also restated its long-term ambition to reach an EBIT margin between 3.5% and 4.0% by 2030.
Management pointed to emerging positive momentum in Germany for building and residential construction. PORR scheduled a conference call to discuss results at 2pm Central European Time on Thursday.
Shares in PORR closed at 35.10 on Wednesday. The stock is trading at 8.3 times 2026 EV/EBIT and offers an approximate dividend yield of 3.0%.
Summary
PORR delivered stronger-than-expected cash flow and higher EBIT in 2025, with notable regional divergence in order intake and production output. The company confirmed its 2026 guidance and reiterated its 2030 margin target.
Key points
- FY2025 EBIT rose to 197 million, up 24% year-on-year, with Germany and International segments showing double-digit improvements.
- Free cash flow was 233 million, helped by a 50 million working capital inflow and disciplined capital expenditure, leaving net cash at 93 million.
- Q4 revenue and production output each rose 6.1%, while Q4 order intake declined 12.3% due to weakness in Austria/Switzerland and International markets; Germany strengthened.
Risks and uncertainties
- Order intake weakness in Austria and Switzerland and large falls in International markets could pressure future revenue and production - relevant to construction and regional market exposure.
- Reliance on tight capital expenditure to support cash flow implies sensitivity to any reversal in capex control - relevant to capital-intensive construction operations.
- Divergent regional production trends mean execution risk remains for translating stronger German activity into group-level revenue and profit growth.