Commentary of the President of Budimex SA, Artur Popko, on the results of the Budimex Group for the first half of 2026

• Budimex Group’s sales revenues at the end of the second quarter of 2026

The Budimex Group achieved good results in the first half of 2026, confirming its strong competitive position and effective project portfolio management. In the second quarter of 2026, the Group recorded an improvement in results compared to the first quarter. Despite the challenges on the difficult construction market this year, the Budimex Group is not slowing down. 

Most of our contracts started in recent quarters are carried out in the design and build formula and are currently starting to move into the implementation phase. As a result, consolidated sales revenues in the first half of the year amounted to PLN 4,263 million and were 8.0% higher than in the corresponding period of the previous year. The gross profit of the Budimex Group amounted to PLN 326 million with a profitability of 7.7% compared to 8.5% in the first half of the previous year, which is the result of a lower result on financial activities, which is a consequence of lower interest on cash held.

Construction and assembly production in the first half of 2026 (current prices) increased by 1.8% year-on-year from PLN 65.4 billion to PLN 66.6 billion. In the buildings segment, sold production decreased by 5.6%, while in the infrastructure area it increased by 9.7% compared to the same period of 2025.

Sales of the construction segment of the Budimex Group in the first half of 2026 amounted to PLN 3,759 million (an increase of +4.7% y/y) achieving operating profitability of 6.8%.

An increase in sales revenues in the first half of 2026 in the construction segment, compared to the same period last year, was recorded mainly in the area of railway and road construction. Despite the unfavorable weather conditions prevailing in the first two months of 2026 (a cold winter lasting much longer than in the previous year), the production generated in the next four months was noticeably higher. This is a consequence of a high and well-diversified order book, which has moved from the design phase to the implementation phase on most contracts, which will translate into high production throughput in the coming months.

At the same time, in the first half of 2026, compared to the corresponding period of the previous year, the level of revenues generated by Budimex SA’s foreign branches on the Latvian, Czech and Slovak markets increased. This increase is the result of the implementation of foreign construction contracts, acquired as part of the direction of geographical diversification of the Group’s construction portfolio, which was adopted a few years ago and has been consistently implemented.

Operating profitability of the construction segment in the first six months of 2026 amounted to 6.8% and was lower by 1.2 p.p. compared to the same period last year. The decrease in profitability was largely caused by unfavourable weather conditions prevailing in January and February, which resulted in a reduction in the level of processing generated by construction contracts. Assessing the current situation, we assume that it is temporary and does not affect the long-term prospects of the business. In the second quarter of 2026, we observed a stabilization and increase in margins achieved on contracts, which translated into an improvement in the profitability of operating profit in the construction segment from 6.5% achieved in the first quarter to 7.0% in the second.

The profitability of the gross profit of the construction segment in the period under review was 7.5%. Although it was below the level recorded in the first half of 2025 (9.0%), it remains at a solid level. The decline in profitability on gross profit was m.in. as a result of lower net interest income, which is a consequence of the reduction of the NBP interest rate from 5.25% at the end of June 2025 to 3.75% at the end of June 2026.

In the first half of 2026, we acquired contracts worth PLN 4,886 million. The Budimex Group’s order book at the end of June 2026 amounted to PLN 17.9 billion. The high value of the order book is a solid foundation for the company’s further development and secures the work front for the current year and most of the following year. Intensive work on the acquisition of new projects has resulted in the value of projects awaiting signature and those where the offer of Budimex or the Group companies has been rated the highest, currently close to PLN 3.4 billion.

The Budimex Group ended the first half of 2026 with a net cash position of PLN 1.2 billion. The change in net cash position (y/y) was mainly due to the payment of dividend in the amount of PLN 828 million and a seasonal increase in working capital exposure, as a result of an increase in monthly contract processing, which resulted in an increase in quarterly sales of the construction segment in Q2 2026 compared to Q1 2026 by nearly 100%. In the third and fourth quarters of this year, we expect to convert seasonally increased working capital into cash.

Double-digit year-on-year revenue growth in the FBSerwis Group while maintaining good profitability

The financial results of the FBSerwis Group confirm the stable development of its operations. The company generated revenues of PLN 489 million, which means a year-on-year increase of 12.3% and generated EBITDA of PLN 77.7 million, with an EBITDA margin of 15.9%. The Group maintains good operational condition in all key business segments, consistently strengthening its market position. 

Order book and cash position

An important factor supporting further development remains the portfolio, which exceeded PLN 1 billion at the end of the second quarter of 2026, constituting a solid base for future revenues and ensuring greater predictability of operations. The increase in the value of the order book in recent months has been influenced by m.in. agreements concluded with the General Directorate for National Roads and Motorways concerning year-round maintenance of national roads in the areas of Starachowice, Puławy and Jędrzejów, with a total value exceeding PLN 240 million (including options). FBSerwis’ Environmental Services Division continued to invest in the development and modernization of its assets. In the second quarter, the modernization of the mechanical waste treatment line at the FBSerwis Zielony Wrocław Waste Management Plant in Kryniczno (Środa Śląska commune) was completed.. The investment increased the efficiency of the recovery of secondary raw materials and improved the efficiency and safety of the processes carried out. The company has also signed new contracts, including projects related to the replacement of street lighting in the Łęczna Municipality and contracts for the management of mixed municipal waste with the City of Łódź. FBSerwis remains focused on further improving operational efficiency, developing competencies and fully exploiting market potential in the coming years.

The Mostostal Kraków Group ended the second quarter of 2026 in accordance with its operational assumptions, achieving good financial results and maintaining a stable market position.

After the first half of 2026, the Group generated sales of PLN 363 million, achieved EBIT profitability of 2.0% and contracted new orders worth PLN 790 million. Revenue growth remains in line with the assumptions and exceeds the level achieved in the corresponding period of the previous year. EBIT was higher than assumed in the plan revision and – excluding one-off events – remained at a level comparable to the corresponding period of the previous year.

The lower level of net cash is due to the natural cycle of contract execution. The Group is completing the stage of settling projects financed with advance payments, at the same time starting the implementation of new foreign contracts operating in a different commercial settlement model.

At the end of June 2026, the value of the order book reached a historic level of PLN 1.359 billion, ensuring a high level of revenues in subsequent periods and enabling a selective approach to acquiring new contracts. The Group consistently implements its development strategy on foreign markets. Germany and the Scandinavian and Baltic markets remain key business directions, with contracts signed in these markets accounting for nearly 70% of the value of new orders in 2026. This confirms the effectiveness of the implemented geographical diversification strategy and strengthens the Group’s position on prospective European markets. At the same time, the Group continues to invest in the development of its steel construction plants, increasing production capacity and preparing facilities for the implementation of the growing order portfolio.

Group development – pace, scale and strategic projects

In the first half of 2026, the Budimex Group significantly increased its pace of operations – we reached important milestones in our investments, signed strategic agreements and strengthened our presence on foreign markets. This half-year confirmed that we are able to combine the executive scale with the development of specialist competencies and effectively prepare the Group for participation in the largest infrastructure programs in the coming years. ‎

Roads and railways remain the foundation of our business, while tunnel construction is becoming increasingly important in the Group’s portfolio. Currently, we are implementing projects involving 3 such facilities with a total length of 8.65 km, and in subsequent proceedings in which we participate, there are 10 more tunnels with a total length of over 20 km. In March, we signed the largest contract in the company’s history, worth PLN 2.3 billion, for the next stage of the Podłęże-Piekiełko line, including m.in. construction of a railway tunnel. ‎

An important direction of our activity are also projects related to the Port of Poland. It is a great honour and responsibility for Budimex to be able to participate in one of the first stages of this investment. In June, we signed a contract for the design and execution of deep foundations for the future passenger terminal worth PLN 118,660 million. Technically, it is over 8 thousand piles and columns reinforcing the ground, reaching up to 30 meters deep into the ground. In practice, it is the invisible backbone of the future terminal, on which its durability, security and scale will depend.

At the same time, we are developing competences in areas that will gain importance in the coming years – energy, transmission networks, strategic and defence infrastructure. We are also preparing to participate in investments related to nuclear energy. In January, Budimex obtained the ISO 19443 certificate, confirming that it has met the quality and organisational requirements necessary to operate in the nuclear sector supply chain. In March, Mostostal Kraków, together with five other Polish companies from the steel structures industry, signed the “Great 6” agreement, concerning cooperation, knowledge exchange and joint preparation for the implementation of nuclear projects in Poland. These are the next steps in building the Group’s facilities in an area where quality, safety and maturity of processes are of key importance.

In the road segment, we are preparing to start works on the next sections of the S10. We have obtained a ZRID decision for the fifth of the six sections of this route we are implementing. In total, we are responsible for nearly 80 km of the new road. In the proceedings concerning the extension of the A2 motorway on the Łódź Północ-Łyszkowice section, GDDKiA selected Budimex’s offer. We are currently waiting for the contract to be signed. ‎

Foreign operations remain an important element of portfolio diversification, which increases the Group’s resilience to economic fluctuations in individual segments. In June, we handed over the D1/D4 motorway junction – our first road contract in Slovakia – 90 days ahead of schedule. ‎

An important step in the development of Budimex’s presence on the Czech market is its participation in the procedure for the implementation of the D35 project in the PPP formula. According to the information from the stage of opening bids by the Contracting Authority, the consortium – of which we are a member – presented the lowest price among the three bids in this procedure. Currently, the Ministry of Transport of the Czech Republic conducts a detailed evaluation of the offers in terms of price and quality (price is not the only criterion for evaluating the offers), so we are waiting for the final decision, including the selection of the most advantageous offer, with respect for the process. Regardless of the outcome, participation in this procedure is another important step in Budimex’s development on the Czech market and strengthening our competences in the public-private partnership formula.

In the first half of the year, we have consistently prepared to participate in the reconstruction of Ukraine as a partner with the resources, experience and competences needed to implement projects of strategic importance. In May, Budimex, Polimex-Mostostal and AMW SINEVIA signed an agreement defining a framework for cooperation in the preparation of infrastructure projects. During the Ukraine Recovery Conference 2026 in Gdańsk, we emphasized that Polish companies should prepare for this process today. Their advantage may be not only the ability to carry out works, but also competence in the preparation, financing and management of complex projects.

Market outlook

In the first half of 2026, the market for large public investments began to gain momentum. The industry is preparing to implement projects on a scale that the Polish construction industry has not faced for years. Poland is facing an accumulation of road, railway, energy and defence projects. The growing value of contracts signed in the road segment and the increase in the tender plan of PKP Polskie Linie Kolejowe for 2026 create conditions for a gradual increase in activity in the industry. However, the impact of the current contracting on construction and assembly production and company revenues will be visible with a delay. The planned changes to the Railway Fund are a good sign. Stable, long-term financing of PKP PLK’s investments would reduce the risk of breaks between subsequent financial perspectives and ensure a more predictable schedule of proceedings. What matters to the market is not only the value of the announced programs, but also the efficient passage of projects from the stage of preparation to implementation.

The implementation of such a broad program requires not only executive potential, but also efficient and consistent application of the Public Procurement Law. We positively assess the direction of the State’s Procurement Policy and the actions of the Public Procurement Office aimed at streamlining appeal proceedings.

People, competences and socio-economic impact

The scale of the Budimex Group’s operations translates into jobs, tax revenues and the development of domestic companies and competences. In the last four years, Budimex has paid over PLN 2.6 billion in CIT, PIT and VAT costs, and employs over 8 thousand. people, and since 2021 it has allocated over PLN 6 billion for salaries. We also cooperate with nearly 20 thousand. subcontractors, suppliers and partners. This shows that the implementation of infrastructure investments creates value beyond the contract itself – it strengthens the labour market, domestic enterprises and the executive base of the Polish economy.

Maintaining this scale in the coming years will require access to experienced engineers, managers and specialists. That is why we invest both in the future construction staff and in the competences of people who already work in our Group. As part of the record-breaking edition of the Budimex Academy Internship Programme, we have prepared over 300 paid places for students and dozens of offers for technical students in 75 locations. For the first time, the program also covered Tallinn in Estonia. ‎

We continued to cooperate with schools and universities, supporting technical education and the development of specializations that respond to the needs of the market. Further Budimex Zones were established in Poznań and Wałcz, and in Wrocław we were involved in launching the “water construction technicians” course. Currently, we cooperate with 54 schools and 27 universities, and over 3 thousand pupils and students have gained their first professional experience thanks to our programs. ‎

We also develop social engagement by cooperating with organizations that respond to important social needs. In the first half of the year, we supported with PLN 3.01 million a fundraiser organized by Łatwogang for the Cancer Fighters Foundation, which helps children fighting cancer. In the same period, we have also supported many other initiatives important for our local communities in the field of health protection, leading a healthy lifestyle, and taking care of safety.

Awards

The first half of the year also brought distinctions related to Budimex’s market position, cooperation with industry partners and the employer’s activities. In the Deloitte report “Polish construction companies 2025”, the Budimex Group was identified as the industry leader in terms of revenues, sales result, net result and market value. The company was also highly rated in the “Listed Company of the Year 2025” ranking of “Puls Biznesu”, m.in. 5. place in the investor relations category.

We also received a gold award in the “General Contractor Friendly to Construction Companies” category and the title of Golden Champion of the Year 2026. These awards are of particular importance to us, as they are based on the evaluations of the contractors and their experience in the joint implementation of the investment. ‎

The Group’s position as an employer has also been appreciated at the European level. Budimex has been included in the ranking of Europe’s Best Employers 2026 prepared by the Financial Times and Statista, taking 166th place in the ranking. place among a thousand evaluated organizations and 14th place in the construction category. The company was also on the podium of the Poland’s Best Employers 2026 ranking by Forbes among construction companies. The results of these rankings show that Budimex is highly rated by capital market experts, industry partners and employees.