Koninklijke BAM Groep nv

Royal BAM reported first-half 2026 revenue of EUR 3.5 billion, up 3% year over year. Adjusted EBITDA increased to EUR 240 million from EUR 176 million, with margin reported as 6.9% in the CEO remarks and 6.5% in the CFO review versus 5.2% in H1 2025. Net result rose 25% to EUR 127 million, and earnings per share were EUR 0.49, up EUR 0.10 year over year. Cash flow from operations was EUR 211 million, the cash position ended at EUR 750 million, and the order book was EUR 12.6 billion. For the Netherlands, adjusted EBITDA rose 25% to EUR 138 million with an 8.2% margin, and in the U.K. and Ireland adjusted EBITDA increased 48% to EUR 98 million with a 5.7% margin. Full-year 2026 guidance was maintained for an adjusted EBITDA margin of at least 6.5%, an effective tax rate of 15% to 17%, home sales broadly in line with 2025, and capex around EUR 80 million to EUR 85 million for the year.

Ruud Joosten framed the first half as evidence that BAM’s portfolio quality and strategy are working, pointing to higher profitability across both divisions and strong demand in markets tied to energy transition, infrastructure, defense and housing. He highlighted strategic actions such as the Gebroeders Blokland acquisition, the Veldhoven land position, and defense-related projects in the Netherlands, while also emphasizing disciplined contract selection and risk management. His tone was confident but measured, and he said the company feels confident in its at least 6.5% full-year adjusted EBITDA margin target.

Henri de Pater focused on the financial bridge behind the earnings improvement: revenue of EUR 3.5 billion, adjusted EBITDA of EUR 240 million, net result of EUR 127 million, and EPS of EUR 0.49. He noted D&A of EUR 89 million, cash flow from operations of EUR 211 million, investing cash outflow of EUR 110 million, and financing cash outflow of EUR 135 million, including EUR 77 million of dividends and EUR 32 million for buybacks; total shareholder distributions were 55% of 2025 net income. He also said capex should be about EUR 80 million to EUR 85 million for the full year, the effective tax rate should be 15% to 17%, trade working capital efficiency improved to minus 12.5%, and cash finished at EUR 750 million.

Analysts pressed management on capex, Dutch construction profitability, sustainability of the strong residential margin, the U.K. facilities business, Ireland’s softer margin, and whether seasonality would remain similar in the second half. Management said capex is still running at roughly the same level as in prior years, but should total about EUR 80 million to EUR 85 million for 2026, with electrification and sustainability investments now normalizing. They also said the 8% plus Dutch Construction & Property margin is sustainable, explained Ireland’s weaker result partly by handover costs and result phasing, and noted that some of the U.K. margin strength included positive settlements in infrastructure.