Strabag Aktie: Price Increase Despite Construction Delays

Strabag SE: Construction delays in Magdeburg

Due to delays in a bridge construction project in Magdeburg, Strabag SE, a leading European construction group, has had to adjust its earnings forecast for the current year. The company now expects a slightly lower operating result than previously anticipated. Nevertheless, Strabag shares rose on the stock exchange on Thursday, with investors apparently seeing the overall development of the company positively.

Construction project delayed

The construction project in Magdeburg, which Strabag is carrying out as part of a joint venture, is facing delays due to unforeseen ground conditions. This has led to additional costs and a postponement of the completion date. Strabag is currently in talks with the client about how the additional costs will be shared.

Despite the setbacks in Magdeburg, Strabag SE continues to see itself on a growth course. The company recently won several major orders, including the construction of a new airport in Berlin and a residential complex in Munich. Strabag is also benefiting from the general uptrend in the construction industry, which is being driven by government stimulus programs and low interest rates.

Analysts see Strabag SE as a well-positioned company that will benefit from the ongoing construction boom. The company has a strong order backlog and is well diversified geographically. Strabag is also considered a financially solid company with a healthy balance sheet.

Conclusion

Despite the construction delays in Magdeburg, Strabag SE remains an attractive investment. The company is well positioned to benefit from the ongoing construction boom and has a strong order backlog. Strabag is also financially sound and has a healthy balance sheet.