Bilfinger Responds to Continued Geopolitical Uncertainty
Business Performance Below Expectations – Outlook for 2026 Updated and Program Agile Launched to Further Increase Flexibility
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The business performance of industrial services provider Bilfinger stays considerably below expectations due to increasing investment restraint and postponements on the customer side. The war in the Middle East, which lasts longer than expected, is considered a major driver of this development. The company is thus adjusting its outlook for financial year 2026. At the same time, Bilfinger is launching the comprehensive Program Agile to increase its flexibility and to respond more quickly to changing market conditions.
Business performance in the second half-year is typically characterized by strong seasonal momentum. However, in the current third quarter, Bilfinger has seen a significant increase in customer restraint. This is reflected both in new orders and in the call-off of services under existing framework agreements.
This customer restraint is directly affecting the company’s profitability: Customers are postponing investments. Particularly in high-wage countries, this results in continued underutilization. In addition to that, earnings are impacted by an unfavorable product mix as well as missing call-off of complex, higher-priced services.
With the Program Agile, Bilfinger is responding to these developments in a targeted manner. The measures focus on continued pooling of resources, adapting capacities to changing market conditions, and establishing a global shared services organization. These measures are already part of Bilfinger’s Strategy and are now being prioritized.
“The anticipated clear upturn in business in the second half of the year fell considerably short of expectations. This requires us to adjust our 2026 outlook. At the same time, we are taking decisive action: With the Program Agile, we are increasing the flexibility of our organization in order to respond to future changes in the market – like the continued conflict in the Middle East – faster and more independently. We are convinced that this will further strengthen Bilfinger’s position as a reliable partner for its customers in enhancing efficiency and sustainability over the long term,” says Thomas Schulz, Bilfinger Group CEO.
The program is expected to contribute positively to the business performance in 2027 already. From 2028, it will achieve its full impact and generate annual savings of approximately €75 million. Up to 1,500 positions worldwide could be affected. All steps will be closely coordinated with the employee representatives. To implement the program, Bilfinger will build provisions of approximately €75 million in the fourth quarter of 2026.
Outlook for 2026
For financial year 2026, Bilfinger now expects revenue of €5.3 to 5.7 billion, compared with the previous range of €5.4 to 5.9 billion, and an EBITA margin of 3.2 to 3.6 percent, compared with the previous range of 5.8 to 6.2 percent. Taking into account the one-off costs related to the Program Agile, this corresponds to an adjusted EBITA margin of 4.6 to 5.0 percent. The company expects a free cash flow of €180 to 220 million, compared to €250 to 300 million. The mid-term targets are confirmed.
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