Bilfinger (ETR:GBF) reported full-year and fourth-quarter 2025 results, with management saying the company achieved all financial targets set for the year despite what it described as a volatile market environment. Group CEO Thomas Schulz and CFO Matti Jäkel highlighted higher orders, revenue growth, margin expansion and a sharp increase in free cash flow, alongside progress on safety and sustainability metrics.
2025 targets met as orders, revenue and cash flow rose
Schulz said Bilfinger expanded its market position in 2025 and delivered against its financial objectives. For the full year, orders received increased 6%, revenue rose 8% (4% organic), and EBITDA margin improved by 30 basis points. Free cash flow rose to EUR 330 million from EUR 189 million, a 75% increase.
Profitability improvement driven by operational measures
Jäkel said gross profit margin increased to 11.3% from 10.9%, describing product mix improvements, de-risking and standardization as key contributors. SG&A remained stable at 6.3% for the year, though he noted the three 2025 acquisitions came with higher SG&A ratios, creating opportunities for future cost efficiencies.
Group EBITDA margin improved to 5.5% from 5.2%, with sequential quarterly progression highlighted as 4.5% in Q1, 5.5% in Q2, 5.8% in Q3 and 6.1% in Q4. Management also pointed to a swing in adjustments: a positive EUR 7 million in 2024 versus a negative EUR 8 million in 2025, implying the underlying operational improvement was greater than the reported 30 basis points.
Net profit for 2025 was EUR 176 million. Jäkel said earnings for the year and earnings per share were down 1% due to a buyback of shares from minority shareholders in a larger entity, which negatively affected the financial result and tax rate.
Segment commentary and contract risk mix
Management described Q4 order intake as “softish” due to timing of contract awards and market volatility, while noting the full-year order backlog rose to EUR 4.3 billion from EUR 4.1 billion. Jäkel also cited a negative impact from a weakening U.S. dollar on order intake.
Bilfinger provided additional detail on revenue by remuneration type as part of what it called de-risking. Jäkel said:
- 44% of revenue was time and material
- Close to 20% was unit rates
- Only 20% was lump sum
In segment remarks (under the 2025 structure), management said Europe delivered a book-to-bill of 1.06 and saw adjusted profitability improve despite reported margin softness due to a swing in adjustments. International posted what Jäkel called a “very nice performance,” including strength in Middle East oil and gas and energy, and frame contract wins in the United States, though U.S. government customers were described as hesitant to award contracts. Technologies delivered higher revenue and margin expansion, with growth in nuclear and pharma/biopharma highlighted.
Cash flow boosted by settlement payment; working capital improved
Free cash flow of EUR 330 million reflected some non-recurring support. Jäkel said the figure benefited from a large payment tied to a U.S. dispute settled in 2024, with cash received in 2025. He also emphasized improved working capital efficiency, with net trading assets over revenue improving to 8.3% from 9.6%.
Despite payouts for the dividend, M&A and the share buyback program, Bilfinger increased net liquidity to EUR 146 million from EUR 88 million. Leverage declined to 0.3 at year-end 2025, according to management.
2026 guidance and strategic themes: M&A, cross-selling, and volatility
For 2026, management guided revenue of EUR 5.4 billion to EUR 5.9 billion and an EBITDA margin of 5.8% to 6.2%. Free cash flow guidance was EUR 250 million to EUR 300 million, with Schulz noting the company does not expect to repeat the prior year’s legal dispute cash inflow. Jäkel added the company does not expect one-offs in 2026 free cash flow and said the tax rate expectation is 24% to 25%.
Bilfinger also outlined a new segment structure effective January 1, 2026, and said it will provide a full restatement in the week of April 20. Under the new structure, the company guided to higher margins across segments:
- Western Europe: EUR 1.8 billion to EUR 2.0 billion revenue, EBITDA margin 7.0% to 7.4%
- Central Europe: EUR 2.5 billion to EUR 2.7 billion revenue, EBITDA margin 5.8% to 6.4%
- International: EUR 1.05 billion to EUR 1.2 billion revenue, EBITDA margin 4.2% to 5.0%
On commercial initiatives, Schulz said cross-selling has not been a major driver in 2025 results and “there is more to come,” describing the new structure as enabling better customer focus and fewer layers. On M&A, management reiterated plans to accelerate and discussed a signed deal in Turkey (Technikon). Schulz said closing is expected in 2026, potentially by mid-year if processes proceed as expected, and described Technikon’s revenue as in the “higher double-digit million range,” without disclosing profitability.
In Q&A, management discussed U.S. government-related delays, attributing slower approvals to staffing and process impacts following the start of the DOGE program and related workforce reductions. Schulz also addressed Middle East exposure, saying Bilfinger operates in seven countries in the region and is not active in Iran, while emphasizing its largely local, decentralized operating model and that work has continued without logistical disruptions.
Schulz and Jäkel also said Bilfinger’s currency exposure is limited because contracts are largely executed and paid in local currencies, and the company does not hedge currencies as it is generally not necessary. On working capital, Jäkel said the 2025 improvement should “stick” in 2026, though repeating a similar magnitude of improvement would be difficult.
About Bilfinger (ETR:GBF)
Bilfinger SE provides industrial services to customers in the process industry primarily in Europe, North America, and the Middle East. The company offers engineering, project, maintenance, turnaround, rotating equipment, and inspection services. It also provides new construction and decommissioning of nuclear power plants, treatment of radioactive waste, and nuclear fusion services. In addition, the company offers energy efficiency, carbon capture, utilization, and storage; and hydrogen, hydropower, and wind power services.
