Bilfinger (ETR:GBF) confirmed its 2026 outlook after reporting a slower start to the year, with management pointing to severe winter weather and geopolitical uncertainty as factors that delayed customer decisions and pressured operations in the first quarter.
Group CEO Thomas Schulz said orders received fell 5% in the quarter, while revenue rose 4% to EUR 1.3 billion. The company reported an EBITDA margin of 4.6%, up 10 basis points from the prior-year period, and earnings per share increased to EUR 0.99 from EUR 0.84. Free cash flow was EUR 21 million.
Weather and Geopolitics Weigh on Order Timing
Schulz attributed the slower order intake largely to weather disruptions and uncertainty tied to the conflict in the Middle East. He said severe snow and ice conditions limited work on customer sites, creating temporary underutilization and delaying invoicing. At the same time, geopolitical volatility made customers more hesitant to approve investments, particularly in process industries where energy costs are a major input.
“Decision-making is slowing down, but the decisions are not that they go away or that the investments are not needed,” Schulz said during the call. He said customers were often delaying decisions by weeks rather than canceling projects.
The company’s opportunity pipeline, indexed to the first quarter of 2024, stood at 102 to 106 in the first quarter of 2026, below the 103 to 116 range seen in the first quarter of 2025. Schulz said March was unusually quiet for decision-making, but added that activity had improved since the end of the quarter.
Asked by an analyst about confidence in reaching the midpoint of guidance, Schulz said Bilfinger had seen similar seasonality in the prior year and still achieved its target. He also said the company continues to see demand for maintenance, asset performance and brownfield investment work.
Revenue Growth Offsets Pressure on Gross Margin
Group CFO Matti Jäkel said first-quarter revenue rose to EUR 1.3 billion despite operational challenges. Gross margin declined to 10.8% from 11.2%, mainly because weather-related disruptions reduced utilization. However, selling, general and administrative expenses fell by about EUR 3 million from the prior-year quarter, bringing the SG&A rate down to 6.4%.
Net profit increased to EUR 37 million from EUR 32 million, supported by higher EBIT and a favorable one-time tax effect in the U.S. Adjusted net profit, which Jäkel said is relevant for the company’s dividend calculation, rose to EUR 1.04 per share from EUR 0.94.
Free cash flow was lower than in the prior-year period, when Bilfinger benefited from a mid-double-digit million-euro inflow from a legal proceeding in the U.S. Jäkel also said weather disruptions slowed the certification, invoicing and collection process, leading to higher work in progress. Net trade assets as a percentage of revenue rose to 9%.
Jäkel said working capital and free cash flow should improve in the second and third quarters as seasonal effects ease. He said customer payment behavior had not broadly changed, though customer administrations in the Middle East slowed processing during the crisis.
Mixed Segment Performance
Bilfinger reported a mixed picture across its regional segments. In Western Europe, order intake and revenue increased in the U.K., while the Netherlands and Belgium were down compared with the first quarter of 2025. Growth was driven by energy, and the company also saw some growth in chemicals and petrochemicals, though oil and gas orders declined. The segment’s EBITDA margin rose to 6.8% from 6.3%, supported by more efficient contract execution and integration of acquired businesses including the former Stork business and nZero Group.
In Central Europe, Scandinavia and the Nordic countries posted growth in both order intake and revenue, while Germany and the broader German-speaking DACH region were lower. Jäkel said book-to-bill was 0.99, which he described as “not too bad” in a difficult first quarter. Profitability remained at the prior-year level, with weather conditions having a more visible impact.
In the International segment, Jäkel said reported growth was held back by currency movements, particularly the U.S. dollar. North America recorded increases in orders tied to large framework contracts, while the Middle East was affected by the beginning of the war in late February. Revenue increased in North America but declined in the Middle East and Eastern Europe. Profitability fell from EUR 6 million to breakeven, due to geopolitical disruption and more severe weather in Eastern Europe.
Energy and Biopharma Remain Key Growth Areas
Schulz said Bilfinger continues to see varying demand across its four main customer industries. Energy, which now accounts for 26% of revenue, has a positive outlook due to rising demand for generation, storage and transmission. Chemicals and petrochemicals represent 20% of revenue, with stronger activity in North America and the Middle East but continued restructuring and consolidation in Europe.
Oil and gas also accounts for 20% of revenue. Schulz said higher oil and gas prices can increase customer willingness to invest, particularly in asset performance and brownfield projects. He also pointed to growing LNG-related activity in the U.S.
Pharma and biopharma represent 11% of revenue. Schulz described biopharma as a strong growth area, citing customer needs to localize production quickly and rely on partners for construction and industrial services.
Strategy, M&A and Capital Allocation
Bilfinger closed its acquisition of Turkey-based Teknokon on April 1. Jäkel said the company will include the acquisition in its 2026 guidance when it reports second-quarter results, expected on Aug. 12.
Management also highlighted Bilfinger’s use of artificial intelligence in its updated Client Portal 2.0, particularly for scaffolding planning and deployment. Schulz said the system can help reduce execution time by around 40% and costs by around 30% for certain site activities.
On capital allocation, Jäkel said Bilfinger’s priorities remain paying a growing dividend, funding organic growth and supporting M&A. In response to a question about a potential share buyback, he said buybacks remain part of the company’s “toolbox,” but no new program is planned at this time.
Schulz also said the German stimulus programs for infrastructure and defense could have a positive indirect impact on Bilfinger, particularly in infrastructure and energy, but he said a meaningful effect is unlikely in 2026. He said the company is “a little bit more optimistic” for 2027, including potential opportunities tied to new gas-driven power plants.
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.
