Thursday, November 27, 2025
The ERBUD Group is a giant name in the Central and Eastern European construction industry. In a recent report published by the group itself, ERBUD has demonstrated significant operational resilience through the first nine months of 2025, navigating a national market characterised by a second consecutive year of declining construction and assembly output.
The Group reported PLN 2.44 billion in consolidated revenue, a 16% year-over-year increase from PLN 2.1 billion in 2024. Despite this revenue growth, consolidated profitability metrics showed pressure, with EBITDA falling 17% to PLN 54 million and the operating result (EBIT) dropping from PLN 33.6 million to PLN 15.5 million. The Group recorded a net loss of PLN 13 million for the period, compared to a net profit of PLN 7.7 million a year earlier, a reduction largely attributed to significant investment in a high-growth but currently loss-making segment.
However, a closer look at the core business reveals a strong operational foundation: three of the Group’s four main divisions—Residential, Renewable Energy Services (RES), and Industrial Services—achieved a combined operating profit of PLN 68.7 million on revenues of PLN 2.3 billion, representing a robust 42% increase in operating profit for these core activities.
“Despite the challenging market, three of our four divisions are performing exceptionally well,” stated Dariusz Grzeszczak, President of ERBUD. “Our core segments impress, even as the Polish market experiences headwinds. The fourth segment remains focused on its investment phase, requiring time to deliver positive returns.”
The Group’s best performer in terms of revenue and improved sales margin was the RES segment, represented by subsidiary ONDE S.A., a leading Polish contractor and developer in the renewable energy space.
ONDE generated PLN 629.6 million in revenue, an 8.28% increase year-over-year, and significantly boosted its gross sales margin by 31.5% to PLN 75.6 million. While the segment’s operating profit of PLN 31.8 million was slightly lower (down 6.8% y/y), this was primarily due to a lower contribution from development transactions compared to the previous year.
Jacek Leczkowski, Vice-President of the ERBUD Group, highlighted the division’s ability to thrive despite market constraints: “ONDE has improved its sales profitability for the consecutive quarter, which is encouraging, especially given that wind projects, which naturally feature higher margins, are as scarce as hen’s teeth.”
The segment’s focus on photovoltaic (PV) projects remains satisfactory, underscored by the acquisition of four large PV farm orders in October with a total value of nearly PLN 310 million. However, adverse domestic legislation and tedious development processes for wind energy are pushing ONDE to actively explore overseas growth opportunities to maximise potential and diversify risk.
The Residential Construction segment, which generates the largest share of the Group’s revenue, not only recorded a 17% increase in sales but also achieved a remarkable turnaround in operating profit. A segment that was slightly in the red a year ago now boasts a profit of nearly PLN 18 million.
President Grzeszczak attributed this positive shift to internal factors: “This is mainly due to increased cost discipline and executive supervision, as well as more conservative work valuations.”
Despite the broader stagnation in the Polish residential market, this segment holds a considerable order backlog of nearly PLN 1.4 billion, with approximately PLN 440 million slated for execution in the final quarter of the year. This large backlog provides a strong buffer against the current market slowdown.
The Industrial Services segment also delivered a highly successful reporting period. This activity, encompassing both domestic and international operations, generated PLN 470 million in revenue (+14% y/y) and saw its operating profit climb by 23% to PLN 19 million.
Tomasz Wojak, member of the ERBUD Management Board responsible for the segment, pointed to the high inherent profitability of the industrial services sector: “The profitability of this business is also outstanding—typical for this type of activity. We are growing rapidly, especially abroad. There is considerable potential for growth here, as competition is fragmented and the market itself is extensive.”
The sole division operating at a loss, but also the fastest growing in terms of sales, is MOD21, the company focused on timber modular construction. After nine months, MOD21’s revenues soared by 84% year-over-year to PLN 127 million.
However, this growth was overshadowed by a negative operating result (EBIT) of PLN 51.2 million. This loss was deliberately incurred, resulting from several one-off and restructuring costs:
President Grzeszczak defended the continued investment: “Every innovative activity requires a longer ‘start-up’ period… We are in the most challenging phase—optimising processes, making continuous adjustments, and searching for better solutions.”
This strategic loss is set against the backdrop of a booming market forecast. According to the Polish Investment and Trade Agency, the domestic modular construction market is projected to reach PLN 7 billion annually by 2030. This growth is expected to be fueled by demand in military, social, and educational construction, as well as massive infrastructure projects like the Central Communication Port (CPK) and future nuclear power plants. ERBUD is positioning MOD21 to capture a significant share of this high-potential European market.
The ERBUD Group ended October 2025 with an aggregate external backlog exceeding PLN 2.5 billion, a strong indicator of future revenue visibility. The Group signed contracts worth almost PLN 550 million after the balance sheet date, totaling PLN 2.4 billion for the year to date.
Looking ahead, the Group remains cautiously optimistic about the macro environment. The expectation is that the large-scale disbursement of funds from the Polish National Recovery and Resilience Plan (KPO) will finally gain momentum in the first half of 2026.
“At that point, we also expect a visible rebound of the market,” concluded Dariusz Grzeszczak, signaling that ERBUD’s diversified business model and its strategic investments in high-growth areas like RES and modular construction are preparing the company to capitalize fully on the anticipated wave of public investment.
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Tags: construction backlog, industrial services growth, MOD21 optimization, National Recovery and Resilience Plan (KPO), Polish residential market
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