Commentary of the President of Budimex SA, Artur Popko, on the financial results for 2025

• The Budimex Group’s sales revenues in 2025 amounted to PLN 9 billion 439 million (+3.5% y/y).

• The Budimex Group generated an operating profit of PLN 892 million (compared to PLN 744 million in 2024), while recording an increase in profitability from 8.2% to 9.5%.

• The operating profitability of the construction segment amounted to 9.5% and was higher than in the previous year (8.0%).

• Operating profitability in the services segment reached a double-digit level of 11.2% and was higher than in the previous year (8.7%).

• The Budimex Group’s order book at the end of December 2025 amounted to PLN 16.2 billion and secures the work front for the current year, most of 2027 and part of 2028

2025 was a time of intensive activities, which brought the Budimex Group record operating profitability and a stable position as the leader of the construction market in Poland. For the whole year, the Company generated approximately PLN 892 million in operating profit, of which PLN 383 million was for the last three months of the year. At the end of December 2025, the order book amounted to approximately PLN 16.2 billion, and the value of contracts awaiting signature reached approximately PLN 6 billion, strengthening the visibility of revenues in subsequent periods.

The year 2025 was a period of stable operational activity for the Budimex Group, further strengthening of business fundamentals and continued diversification of operations. Despite the challenging and volatile market environment, the Group maintained solid financial results, maintaining record profitability and a secure order book structure. The construction and services segments maintained high operational efficiency, confirming the resilience of the Group’s business model.

In the whole of 2025, the Budimex Group generated an operating profit of PLN 892 million, maintaining high cost efficiency despite the challenging market environment. After three quarters, the operating result was PLN 509 million (compared to PLN 508 million in the corresponding period of 2024). A strong acceleration occurred in the fourth quarter, when operating profit reached PLN 383 million, which was a significant part of the full-year result and was one of the highest quarterly levels in 2025.

Effective management of direct costs, bidding discipline and a selective approach to new contracts have made it possible to limit the impact of price pressures and volatility of investment schedules on results. As a result, the Budimex Group achieved the expected operating efficiency in 2025, increasing year-on-year profitability from 8.2% to 9.5%. Maintaining stable profitability on an annual basis, with a significant increase in results in the fourth quarter, confirms the effectiveness of the adopted operating model. ‎

Construction and assembly production in 2025 (current prices) increased by 3.9% year-on-year from PLN 157.9 billion to PLN 164.1 billion. In the buildings segment, sold production increased by 8.3%, and in the infrastructure area, an increase of 0.2% was recorded, indicating that the market has stabilized after a period of greater volatility in previous years. Investment activity remained varied during the year. The first part of the year was characterised by limited dynamics, while the second half saw a gradual recovery due to more tenders and the launch of new infrastructure projects.  

The pace of the market was also affected by lengthy preparatory processes, including administrative procedures. These phenomena are consistent with the cyclicality of the infrastructure market and the characteristics of the investment process, and as projects moved to the implementation phases, there was a gradual increase in the pace of works during the year.

Sales of the construction segment of the Budimex Group in 2025 amounted to PLN 8,629 million (+4.9% y/y), recording an improvement in both operating profitability (from 8.0% in 2024 to 9.5% in 2025) and profitability of gross profit (from 9.1% in 2024 to 10.2% in 2025).

The scale of sales revenues in 2025 in the construction segment was higher than in the previous year. The higher level of sales was mainly due to growth in the area of building and railway construction, as well as the intensification of contract execution on foreign markets, in particular the Czech Republic and Slovakia.

Operating profitability in the construction segment amounted to 9.5% and was 1.5 p.p. better than achieved in the financial year 2024. The driving force behind the profitability improvements was the cubature segment, where the process of margin optimization brings positive effects through the adjustment of the client portfolio and a selective approach to the acquisition of new projects and the termination of contracts with lower profitability. The improvement in profitability is also a consequence of further stabilization of prices, greater availability of construction materials and subcontractor services, and maintaining cost discipline in all segments of operations.

The gross profitability of the construction segment in the period under review amounted to 10.2% and improved compared to the corresponding period of the previous year, when it amounted to 9.1%. The direct cause of the improvement in gross profitability was the increase in operating profitability. Lower interest rates on deposits offered by banks, which were caused by the reduction of interest rates started in the third quarter of 2023, continue to have a negative impact on the results achieved from financial activities.

Throughout 2025, we acquired contracts worth over PLN 6.2 billion. The Budimex Group’s order book at the end of 2025 amounted to PLN 16.2 billion, of which over PLN 1 billion was accounted for by contracts and orders carried out outside the country. The high value of the order book secures the Group’s work front not only until the end of 2026, but also for most of 2027, partly moving to 2028. Intensive work on the acquisition of new projects has resulted in the value of projects awaiting signing, as well as those where the offer of Budimex or the Group companies has been rated the highest (as at 31 December 2025), to nearly PLN 6 billion. In the perspective of the coming quarters, this will allow for a balanced and responsible approach to bidding in the upcoming tenders.

The Budimex Group ended 2025 with a net cash position of PLN 2.6 billion. In June 2025, in compliance with the assumptions of the adopted dividend policy, Budimex SA paid a dividend from the profit generated for 2024 in the amount of PLN 649.2 million, which is PLN 25.43 per share.

Improvement of operating profitability in the FBSerwis Group y/y

The revenues of the FBSerwis Group, which is a key asset within the services segment (the results of the service part also include the activities of companies from the RES area, Budimex Mobility and Budimex Parking Wrocław) amounted to PLN 921 million. The FBSerwis Group generated an operating profit of PLN 116 million (compared to PLN 94 million for 2024), while recording an increase in profitability from 10.0% to 12.6%. The FBSerwis Group’s gross profit for 2025 reached a record level of PLN 120 million with a net cash position of PLN 170 million.

Sales revenues in the Mostostal Kraków Group at the end of 2025 amounted to PLN 671 million. We also recorded a record level of contracting of PLN 856 million and the highest operating profit in history of PLN 51 million. The last quarter of 2025, in accordance with the assumptions of the companies from the Mostostal Kraków Group, was intense in terms of completing the formalities related to new contracts. The order book includes projects with a total value of over PLN 500 million, which allows us to calmly approach the bidding process and focus more on development and further investments. ‎

The RES area developed its portfolio of generation assets – the Azalia (60 MW) and Kamelia (21 MW) photovoltaic farms have been granted concessions for electricity generation, and the capacity to generate energy from renewable sources exceeds 100 GWh per year. BxF Energia is developing projects with a potential capacity of about. 1.6 GW, with a predominance of wind and hybrid installations (PV + wind).

In December 2025, the Budimex Group obtained PLN 63.7 million in financing from mBank for the development, construction and operation of the “Kamelia” PV project in Wymysłowo (Mszczonów commune). The project includes 33,870 panels with a total connection capacity of 21 MW. Thanks to the implementation of the “Azalia” and “Kamelia” projects, the total installed capacity in the green energy area in the Budimex Group exceeded 90 MW in 2025.

Market outlook

The construction sector remains one of the key drivers of the Polish economy. The construction industry is responsible for about. 10.5% of GDP, and the scale of employment in the sector (taking into account the environment) is about. 1.3 million jobs.

The year 2025 brought a moderate improvement in market activity, but the outlook for 2026 is assessed as more favourable, primarily due to the expected increase in investment activity in the area of transport infrastructure and energy. According to industry forecasts, the value of the construction market in Poland may exceed PLN 400 billion, with part of the increase being nominal, related to the cost structure. At the same time, in some tender procedures, strong competitive pressure and aggressive bidding persist, which forces selective contracting and increased cost discipline on the part of contractors.

The predictability of the public procurement market and the efficiency of the investment process remain a challenge. It would be helpful to introduce a fixed investment calendar – discrepancies between the announcements and the actual launch of proceedings make it difficult for contractors to plan resources in the long term and manage the company stably. An additional factor is appeal procedures – the growing number of appeals to the National Appeals Chamber and the lengthening time of their processing affect investment schedules and increase implementation and indexation risks.

In 2026, the time pressure resulting from the schedule of EU-funded investments, including those under the Recovery and Resilience Facility (RRF), for which the deadline for achieving milestones and targets is 31 August 2026, is also becoming more important. In practice, this requires an efficient absorption of available funds and a smooth transition from financing to real fronts of works. In this context, it remains crucial to maintain the pace of preparation and launch of projects, efficient processing of administrative decisions and reliable verification of contractors in tender procedures. The increase in investment activity should translate into a stable volume of works and predictable conditions for implementation, limiting the risk of investment spikes and increasing cost pressure.

 
Budimex against the competition

Budimex maintains its position as one of the key infrastructure contractors in Poland, combining the scale of operations with diversification of competences. In 2025, projects of high complexity, including m.in. T3 Terminal in the Baltic Hub, the Tri-City Metropolitan Bypass and the modernization of the Warszawa Zachodnia station. In the Podłęże-Piekiełko project, tunnel works were continued with the use of the TBM “Jadwiga” shield (3.2 km tunnel).

In the road segment, Budimex is implementing 24 contracts with a total length of 255.2 km. At the end of the year, investments were also completed in advance: the reconstruction of the bridge in Stronie Śląski and the Drezdenko bypass with a 346 m long bridge. On foreign markets, a contract was signed for the Estonian section of Rail Baltica (58.08 km) and the construction of a flood reservoir in the Czech Republic continued.

Mostostal Kraków remains active in activities related to nuclear energy. In 2025, we obtained a demanding certificate related to the American NQA-1 standards and started preparing mock-up elements of a nuclear reactor for the first nuclear power plant in Poland at our Steel Construction Plant in Krakow. In the perspective of this and the next year, we are planning further investments that will ensure our group a place among the leading Polish companies selected for the nuclear energy supply chain. ‎

2025 was a year of intensive development for FBSerwis. The Environmental Services Division has completed significant investments in infrastructure. FBSerwis Zielony Kamieńsk has opened a modern Control and Measurement Laboratory. FBSerwis Zielona Karpatia in Tarnów has opened a new biological waste treatment plant. In October, a new transport and warehouse base was opened in Kruszów, which is an important element on the way to increasing the efficiency of logistics processes related to the services provided by FBSerwis in the region. In 2025, the Road Infrastructure Maintenance Division has won contracts in the field of current and winter road maintenance, as well as cleaning maintenance. These included, among others, two contracts concluded with the General Directorate for National Roads and Motorways Branch in Gdańsk, with a total value of 205.6 million (287.8 million with an option), for year-round maintenance of roads. In addition, we are waiting for the completion of the processes related to the selection of the contractor in five tender procedures.

The FM/SL Division continued its activities aimed at acquiring new orders in the area of technical maintenance of facilities and lighting modernization. The result of these actions was m.in. signing a contract with PKP Polskie Linie Kolejowe S.A.. for the modernization of external lighting in the railway areas in Białystok, Siedlce, Lublin, Rzeszów, Opole, Wrocław and Wałbrzych.

Social responsibility

Budimex received the Largest CIT Payer award in the construction industry category. In the last ten years, Budimex SA has paid over PLN 1.5 billion of CIT to the state budget, and in the last four years the total amount of CIT, PIT and VAT taxes has exceeded PLN 2.6 billion.

Budimex has been awarded four prizes in the “Construction of the Year” competition (XXXV edition), m.in. for the Waterfront II projects, the Port of Gdynia, the pedestrian and bicycle bridge over the Vistula River and the sports hall in Ziębice. In the area of education, the company has signed a cooperation agreement with AGH UST in Krakow.

The “Green Stop” initiative was continued in environmental activities (additional planting of 1000 trees and 50 shrubs). In the pro-social area, the “Parent Zone” program was developed – in 2025, 45. Parent Zone in Bratislava. Budimex also conducted educational initiatives in the field of child safety (Hello ICE) and innovative activities through the Budimex Acceleration Program.