BAM reports €199 million adjusted EBITDA in first nine months
First nine months 2023 trading update
Over the first nine months of 2023, Royal BAM Group nv delivered an adjusted EBITDA of €199 million, reflecting a margin of 4.4 per cent. The Group performed well in the third quarter in challenging market conditions. The cash position and order backlog are at a good level. BAM expects to deliver an adjusted EBITDA margin of approximately 4.5 per cent for the full-year 2023.
Stable revenue in both Netherlands and United Kingdom & Ireland divisions;
Adjusted EBITDA of €199 million in first nine months (adjusted EBITDA margin of 4.4%);
Adjusted EBITDA of €80 million in third quarter versus €99 million in the comparable period last year, which included €52 million book profit on the Wayss & Freytag transaction;
Cash position of €0.5 billion, capital ratio improved to 23.6% (mid-year 2023: 22.3%);
Order book remained at good level of €9.4 billion (mid-year 2023: €9.5 billion).
Business review first nine months 2023
In the division Netherlands, the Dutch residential activities reported a satisfactory contribution under difficult
market conditions. Home sales totalled 863 versus 1,103 homes sold in the comparable period last year.
Based on the project pipeline, BAM expects to sell approximately 1,500 homes in 2023 (FY 2022: 2,028).
During the third quarter, the performance of non-residential recovered and telecom, energy and water
continued to contribute strongly. The operational performance of civil engineering remained solid. Recent
project wins include the WeideWald project in Doetinchem to realise 73 sustainable wooden Flow homes and
the circular redevelopment of the ABN AMRO Foppingadreef office in Amsterdam.
In division United Kingdom and Ireland, Civil engineering UK delivered good results supported by a high
activity level. BAM Ventures and Ireland continued their strong performance. The contribution of Construction
UK was impacted by inflation and supply chain challenges on some larger contracts. Following constructive
engagement with the client, BAM looks forward to handing over the National Children’s Hospital in Dublin
within the revised agreed timescale. Recent project wins include the facility management services for three
academic establishments and a multi-year framework contract to upgrade Belfast Wastewater Treatment
Works. The announced cancellation by the UK Government of the Birmingham to Manchester phase of the
HS2 rail project has no impact on BAM’s current order book.
The activities in Belgium delivered a solid performance.
Financial review
The cash position of €0.5 billion is solid and BAM’s capital ratio improved to 23.6 per cent (H1 2023: 22.3 per
cent). Trade working capital efficiency further normalised to -14.0 per cent (H1 2023: -14.8 per cent), which
reflects the unwinding of advance payments on large projects as a consequence of BAM’s adjusted
tendering strategy and the effect of higher interest rates.
Investigation Dutch authorities
In October 2022, the Dutch Fiscal Information and Investigation Service (FIOD) and the Dutch Public
Prosecutions Office (Openbaar Ministerie) have informed BAM International that it is the subject of an
investigation into suspicions relating to potential fraud and corruption at some already completed projects.
The timing and possible outcome of the investigation are uncertain. Therefore, the potential adverse financial
impact of the outcome of the investigation, if any, cannot be reliably estimated at this time but could possibly
be material.
BAM is fully cooperating with the investigation and taking appropriate steps in connection with the
investigation, including an internal review of the relevant projects. In July 2020, BAM announced its intention
to wind down BAM International. Meanwhile all projects of BAM International have been completed.
Audio webcast
Ruud Joosten, CEO, and Frans den Houter, CFO, will host a conference call with analysts at 10.00 a.m. CET
on 2 November 2023 to discuss the trading update. A live audio webcast of this conference call will be made
available at Royal BAM Group’s