Shares in PORR AG fell nearly 10% on Thursday after the Austrian construction group reported a sharp decline in order intake and revenue for the second quarter, despite an increase in earnings.
Second-quarter revenue declined 0.9% year-over-year to €1.68 billion, missing the €1.74 billion consensus compiled by the company. EBIT rose 16.4% to €42 million, exceeding the €39 million company-compiled estimate and the Bloomberg consensus. The EBIT margin improved to about 2.5%, up 37 basis points from a year earlier, according to Jefferies.
Output decreased 1.8% to €1.867 billion, with gains in Austria, Switzerland, and Poland offsetting weakness in Germany. The country’s output was constrained by an extended winter, disruptions in building construction, and the completion of a major project. Order intake dropped 32.2% year-over-year to €1.70 billion, with positive contributions limited to Austria and Switzerland.
The order book stood at €9.8 billion at the end of June, down from €10.0 billion in the first quarter but up from €9.4 billion a year earlier. The book-to-bill ratio fell to 0.9 times, compared with 1.4 times in the first quarter and 1.3 times a year ago.
PORR narrowed its 2026 guidance, now expecting revenue and output growth of 2% to 4%, up from the prior forecast of "moderate growth." The company also raised its 2026 EBIT margin guidance to 3.2% to 3.3%, compared with the previous range of an "improved" margin versus fiscal 2025’s 3.1%. Long-term guidance for an EBIT margin of 3.5% to 4.0% by 2030 was reiterated.
Analysts at Jefferies noted that the second-quarter results leave PORR "comfortably on track" to meet 2026 expectations. They added that weaker-than-expected free cash flow and order intake were largely due to "one-off weather effects and timing." The bank also highlighted the group’s position to benefit from strong construction demand, particularly in "margin-accretive civil projects across Central and Eastern Europe."
