Bilfinger Reports Surge in Orders Amid Profitability Pressures
Bilfinger Reports Surge in Orders Amid Profitability Pressures
German industrial services group Bilfinger has reported one of its strongest quarterly order intakes in a decade, with new business rising 25% to £1.2 billion in the third quarter. The surge was driven by energy sector demand, though the company noted that profitability declined as customers delayed investment decisions amid economic uncertainty.
German industrial services provider Bilfinger reported a sharp increase in new orders for the second consecutive quarter, recording £1.2 billion in bookings during the third quarter. This figure represents a 25 percent rise compared to the same period last year and stands as one of the highest quarterly order intakes achieved by the company over the past decade.
The performance was largely supported by continued demand for efficiency and sustainability projects, particularly within the energy sector. The strong intake included an order extension worth more than €300 million from an existing customer. As a result, the group’s order backlog increased to more than £3.6 billion, up 6 percent year-on-year, while its book-to-bill ratio reached 1.25.
Despite the robust order intake, revenue slipped slightly as customers continued to delay investment decisions and postpone call-off orders under framework agreements. Bilfinger attributed this hesitation to a volatile economic environment, particularly in Europe where energy prices remain elevated.
Profitability metrics reflected these challenges. Gross profit fell to £102 million from £117 million in the same quarter of 2025, while earnings before interest and tax (EBITA) declined to £47 million from £60.8 million. The EBITA margin stood at 4.6 percent, down from 5.8 percent a year earlier. Net profit for the quarter was £32 million, down from £41 million, with earnings per share falling from £1.10 to £0.87.
Bilfinger noted that profitability had been affected by lower utilization in parts of the business, reduced demand for more complex and higher-value services, and changes to the overall project mix. However, free cash flow improved to £57 million from £53 million a year earlier, helped by contractual settlements and catch-up effects. The company’s cash conversion rate increased to 121 percent, up from 87 percent in the prior-year period.
During the quarter, Bilfinger launched "Program Agile," a group-wide initiative designed to improve responsiveness to changing market conditions. The program includes measures such as capacity adjustments, resource sharing, and the expansion of its global shared services organization. The company estimates the initiative will contribute around £56 million in annual earnings from 2028 onwards, with initial benefits expected to be visible during 2027.
Thomas Schulz, Bilfinger Group CEO, acknowledged the difficult landscape ahead while highlighting the underlying demand for the company’s services. "2026 is a challenging year for Bilfinger," Schulz said. "However, the strong order intake for the second consecutive quarter underscores the demand for our services to enhance efficiency and sustainability in the process industry."
Schulz confirmed that the updated outlook for 2026 remained valid. "With Program Agile, we will be able to respond to market changes more quickly and effectively going forward," he added. "The months ahead will be highly demanding for our entire organization. My express thanks go to our employees for their dedication during this challenging phase."
Bilfinger said it continues to see opportunities across its core end markets, including energy, oil and gas, chemicals, and pharmaceuticals. Among the contracts secured during the quarter were work on a boiler installation project at the Zeeland Refinery in the Netherlands, engineering and installation services for EDF’s Hinkley Point C nuclear power station in the UK, and piping-system work at a chemical plant in Poland.
The company also highlighted growing opportunities in the Middle East, where it is in discussions with customers about infrastructure reconstruction and the recommissioning of industrial facilities. Bilfinger confirmed the outlook issued in September, forecasting full-year revenue of between £3.9 billion and £4.2 billion. The group expects an EBITA margin of between 3.2 percent and 3.6 percent, or 4.6 percent to 5.0 percent on an adjusted basis, and free cash flow of between £135 million and £165 million.
The company also reaffirmed its medium-term targets for 2030, including average annual revenue growth of 8 percent to 10 percent, an EBITA margin of 8 percent to 9 percent, and a cash conversion rate of at least 90 percent.
G.Murray--MP
