Bilfinger (ETR:GBF) lowered its 2026 revenue, adjusted EBITA margin and free-cash-flow outlook after customer postponements, underutilization and a less favorable work mix weighed on expected second-half activity, while maintaining its longer-term growth and profitability targets through 2030.
Group CEO Thomas Schulz said the company had expected a stronger second half after a slow start to the year, which was affected by severe weather and geopolitical uncertainty related to the Iran war. However, customers subsequently deferred ongoing work and additional call-offs, particularly in Central Europe. Schulz emphasized that the work was being postponed rather than canceled.
“2026 was not good,” Schulz said. “We didn’t see the second half of the year properly enough.”
Updated 2026 Outlook
Chief Financial Officer Matti Jäkel said Bilfinger reduced its revenue outlook to between €5.3 billion and €5.7 billion, from a prior range of €5.4 billion to €5.9 billion. The midpoint reduction of about €150 million was spread broadly across the company’s segments, with lower expected activity in Western Europe, Central Europe and the international business partly offset by an increase in other operations.
The company also cut its adjusted EBITA margin outlook to 4.6% to 5.0%, compared with an initial target range of 5.8% to 6.2%. Bilfinger had previously indicated after the first half that it expected to finish the year at the low end of that earlier range.
Including the costs of its new Agile program, Bilfinger expects reported EBITA margin of 3.2% to 3.6% for 2026. Jäkel attributed the lower adjusted margin outlook primarily to:
- Reduced revenue and the related loss of gross margin;
- Continued underutilization of capacity;
- A product mix featuring less complex customer work with lower margin potential.
Pricing was not an issue, Jäkel said. Bilfinger also lowered its free-cash-flow forecast to €180 million to €220 million, from €250 million to €300 million, while continuing to expect a cash-conversion rate of about 80% for the year.
Agile Program Targets Capacity, Cost Structure
In response, Bilfinger introduced Program Agile, which Schulz described as an acceleration of previously planned strategic measures intended to improve the company’s responsiveness in volatile markets.
The program includes completing the company’s Global Shared Services organization, finalizing a global consulting and engineering structure, consolidating Bilfinger locations, exiting selected customer sites with limited future potential and expanding at sites where it sees better opportunities.
Bilfinger expects a net capacity reduction of up to 1,500 full-time equivalents under the program. It estimates one-time costs of €75 million and expects EBITA improvement of €75 million from 2028 onward, when the company expects the program to have a full-year impact.
Schulz said the reduction is a net figure that includes both capacity reductions and hiring or expansion in areas with stronger prospective business. The company did not provide a geographic, contractual or job-function breakdown, citing ongoing consultations and negotiations.
Bilfinger plans to provide quarterly updates on capacity reductions, one-time costs, EBITA improvements, location consolidation, shared-services progress and the consulting and engineering organization.
European Chemicals Remain a Focus, but Mix Is Shifting
Management said chemicals and petrochemicals have become a smaller share of Bilfinger’s revenue mix as the industries have faced structural pressure in Central Europe. The sector represented about 30% of revenue in 2022, 23% last year and approximately 20% in the first half of 2026, according to Schulz.
Over the same period, energy increased from about 20% of Bilfinger’s revenue to nearly 30% in the first half. Schulz said the company also sees stronger growth opportunities in North America, the Middle East and Eastern Europe, as well as in adjacent sectors.
In the German and Central European chemicals market, Schulz said customers have been operating plants at elevated rates and postponing certain maintenance and turnaround activity to avoid production disruption. While some plant closures have occurred earlier than expected, Bilfinger is involved in planning related to some closures, he said.
Management said most of Bilfinger’s work remains non-discretionary, with roughly 80% of its business tied to services that customers need to maintain operating assets and permits. About 70% of Bilfinger’s business is operating-expenditure related, while 30% is capital-expenditure related.
Long-Term Targets Unchanged
Despite the 2026 setback, Bilfinger maintained its 2030 targets of annual revenue growth of 8% to 10%, an EBITA margin of 8% to 9% and cash conversion exceeding 90%. The revenue-growth target includes mergers and acquisitions.
Jäkel said the Agile program could add roughly 1.2 to 1.5 percentage points to margin based on current revenue levels, returning the company to around 6%. Bilfinger’s internal best-in-class analysis indicated a potential 7.5% margin if operations performed at their strongest level, with the remaining margin expansion toward the 8% to 9% target expected to come from acquisitions.
The company said its opportunity pipeline improved meaningfully between May and August, reflecting a flatter organization, closer customer engagement, better market analysis and a modest increase in larger projects. Schulz said Bilfinger continues to see positive medium-term demand across many of its markets despite slower customer decision-making in 2026.
About Bilfinger (ETR:GBF)
Bilfinger SE provides industrial services to customers in the process industry primarily in Europe, North America, and the Middle East. The company offers engineering, project, maintenance, turnaround, rotating equipment, and inspection services. It also provides new construction and decommissioning of nuclear power plants, treatment of radioactive waste, and nuclear fusion services. In addition, the company offers energy efficiency, carbon capture, utilization, and storage; and hydrogen, hydropower, and wind power services.
