The conflict in Iran is weighing on order intake at industrial services provider Bilfinger, though the group is also positioning itself for new business stemming from reconstruction efforts in the Middle East. 'Bilfinger is monitoring the situation closely and is already in concrete discussions with customers in the Middle East to support the reconstruction of destroyed infrastructure and contribute to the rapid recommissioning of capacities,' the company announced on Wednesday.

At present, the conflict is dampening local business activity and deterring European customers from investing due to increased energy prices. As a result, order intake in the first quarter shrank by five percent to 1.21 billion euros. Nevertheless, Bilfinger recorded profitable growth: revenue rose by four percent to 1.31 billion euros, while the operating result (EBITDA) also climbed by four percent to 90 million euros. The operating margin (EBITDA margin) thus improved slightly to 4.6 percent from 4.5 percent.

A setback was seen in free cash flow, which plummeted from 109 million to 21 million euros. Bilfinger attributed this to the absence of a large one-off payment received the previous year, as well as prolonged severe weather conditions in Europe at the start of the year. This led to delays in scheduled work and, consequently, later payment receipts. However, CEO Thomas Schulz expects a recovery in demand for the second half of the year. The group confirmed its guidance for the full year 2026, under which Bilfinger expects revenue between 5.4 and 5.9 billion euros and an EBITDA margin of 5.8 to 6.2 percent.

(Report by Sabine Wollrab, edited by Myria Mildenberger. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)