Even though the prices of building materials such as iron, steel and wood have risen explosively, the order book at construction company MT Højgaard is overflowing. In fact, the order backlog during 2022 has increased by 30 per cent to a historically high level. This appears from MT Højgaard’s annual accounts, which were published on Thursday. The company has orders for 1.8 billion euros, and the full order book, according to the accounts, makes the company less sensitive to an expected drop in demand in the construction market.
Turnover for 1.1 billion
In 2022, MT Højgaard had a turnover of 1.1 billion euros, which was 24 per cent more than the previous year. Management expects turnover to continue up into the current year, where it is expected to land at 1.2-1.3 billion euros.
In January 2023, agreements covering 85 per cent of the expected revenue for the year have been concluded. The expectations are based, among other things, on increasing demand for tasks within climate and energy solutions.
Workshops for electric trains and tunnels in Copenhagen
Among the highlights in MT Højgaard’s order book is an agreement with DSB on workshops for electric trains worth 175 million euros. It is also MT Højgaard that will build the Nordhavns tunnel in Copenhagen.
Earnings increase
MT Højgaard’s operating profit before special items rose 60 per cent last year to 37 million. MT Højgaard’s operating earnings have increased in the fourth year in a row. In 2023, management expects growth of between 9 and 18 per cent.
Decline outside Denmark
While the Danish part of MT Højgaard’s business had growth in both revenue and operating profit, the international part had a decline. Revenue outside Denmark ended at 96 million euros, which is a decline of around 16 per cent. The operating result before special items ended in this part of the business with a loss of 5 million.
The results in MT Højgaard International are described in the accounts as “unsatisfactory”.
– In 2023, it is therefore a main task to get MT Højgaard International on track and create sustainable companies in the few and carefully selected international markets where we have special skills and critical mass, the management writes in the accounts.
