BAM Builds Solid Foundation in Q1 2025, UK Construction Leads the Charge

Royal BAM Group has reported a robust start to 2025, with its latest trading update signaling positive momentum across key divisions, particularly within the United Kingdom. The Dutch-headquartered multinational construction and property development firm reiterated its outlook for an adjusted EBITDA margin of around 5% for the full year, demonstrating confidence in its strategic direction.

The first quarter saw BAM deliver increased revenues in both its Netherlands, United Kingdom and Ireland divisions compared to the same period last year. Notably, adjusted EBITDA also improved, primarily fueled by stronger contributions from Construction and Property in the Netherlands, and significantly by Construction UK. This highlights the positive trajectory of BAM's operations within the UK construction sector.

CEO Ruud Joosten expressed his satisfaction with the company's performance, stating, "We had a solid start to the year. Both divisions delivered further growth of revenues and an increase of adjusted EBITDA, compared to the same period last year. Main driver for the higher adjusted EBITDA was the performance of Construction UK and the performance of the Construction and Property activities in the Netherlands."

Further bolstering its position, BAM's order book continued its upward trend, reaching €13.3 billion, an increase from the €13.0 billion reported at the end of 2024. This growth underscores the company's successful focus on securing quality projects that align with its sustainability strategy, rather than solely pursuing volume. The company also reported a strengthened solvency and a robust cash position, providing a solid financial bedrock for future growth.

The UK civil engineering arm celebrated a significant milestone with the successful opening of the Silvertown Tunnel in London on April 7th. This achievement underscores BAM's capability in delivering complex infrastructure projects within the capital. Furthermore, recent project wins in the UK include the green transformation of Broadgate Tower in London, the Cardinal Newman Catholic School, new ferry infrastructure for Fair Isle, and the Crossaig substation, showcasing the breadth and diversity of BAM's UK portfolio.

Joosten further commented on the company's strategic progress, "We continue to make progress with our strategy ‘Building a sustainable tomorrow’, based on the pillars ‘Focus, Transform, and Expand’." He also emphasized BAM's commitment to employee safety and well-being through an enhanced group-wide safety programme.

In a move to streamline its portfolio, BAM completed the divestment of its 50% stake in Invesis to PGGM during the first quarter, with proceeds of approximately €105 million to be received in two tranches throughout the year. Demonstrating its commitment to shareholder value, BAM announced a €50 million share buyback programme, set to commence on May 12th. The company also celebrated its inclusion in the AMX (Midcap) index of Euronext Amsterdam at the end of March.

Looking ahead, BAM acknowledges the persistent uncertainties in the market, including interest rates, nitrogen regulations in the Netherlands, and the broader political landscape. However, the company remains optimistic about the attractive market opportunities driven by the demand for decarbonisation, infrastructure, and sustainable and affordable housing – areas where BAM believes it holds market-leading capabilities.

The strong performance in the UK, coupled with positive developments in the Netherlands and a healthy order book, positions Royal BAM Group well to navigate the evolving construction landscape and deliver on its strategic objectives for 2025 and beyond. The focus on quality projects and a commitment to sustainability appear to be paying dividends for the company in the competitive London and wider UK construction market.