Shares in PORR AG fell nearly 10% on Tuesday after the Austrian construction group reported a second-quarter revenue miss and a sharp drop in order intake, despite a rise in earnings before interest and taxes.
The company posted revenue of €1.68 billion for the quarter, down 0.9% from a year earlier and about 3.5% below the €1.74 billion consensus. EBIT rose 16.4% to €42 million, exceeding the company-compiled consensus of €39 million and lifting the EBIT margin to 2.5%, a 37-basis-point improvement year-over-year.
Order intake declined 32.2% to €1.70 billion, while total output fell 1.8% to €1.87 billion. The order book stood at €9.8 billion, down from €10.0 billion in the first quarter but up from €9.4 billion a year earlier. The book-to-bill ratio dropped to 0.9 times, compared with 1.4 times in Q1 and 1.3 times a year ago.
Regional performance was mixed. Output rose in Austria, Switzerland, and Poland, while Germany lagged due to a long winter, construction disruptions, and the completion of a major project. Analysts at Jefferies noted that weaker free cash flow and order intake were driven by "one-off weather effects and timing."
For 2026, PORR narrowed its revenue and output growth guidance to 2%-4%, up from a prior forecast of "moderate growth." The company also narrowed its 2026 EBIT margin outlook to 3.2%-3.3%, compared with an earlier estimate of an improved margin versus 2025’s 3.1%. PORR reiterated its long-term target of a 3.5%-4.0% EBIT margin by 2030.
Jefferies analysts said the second-quarter results leave PORR "comfortably on track" to meet 2026 expectations and that EBIT came in 8% ahead of company-compiled estimates. They added that the group remains "well-positioned to capitalize on strong construction demand, particularly in margin-accretive civil projects across Central and Eastern Europe."
