Our Mission Statement
Our Vision
Porr - home of construction.
to build a better world.
Our Mission
We believe in a better world, a home facilitated by sustainable buildings. Those who build change the world. For more than 150 years, standing at the forefront of the construction industry with new technologies has been in our DNA.
Our goal is to shape the environment sustainably while driving innovation and growth. And with it create a world worth living in for everyone – today and tomorrow.
This allows us to offer holistic construction solutions from a single source – from design to construction to operations, in building construction, civil engineering and infrastructure.
Innovation, expertise and reliability – powered by PORR
Our principles
Our Business Model
PORR is and will remain a construction company. It is one of the leading players in Europe. For more than 150 years, PORR has been successfully realising complex construction projects in building construction and civil engineering. It is one of the few specialists in the infrastructure sector and covers the entire construction value chain there as well.
As a design-build provider and general contractor, it realises extensive construction projects. The aim is to further expand its strong market position. At the same time, as a technology pioneer in the fields of Building Information Modelling (BIM) and circular construction, PORR sets standards for the entire industry. It enables innovative and sustainable solutions in design, planning and construction. Across all projects, the focus is on partnership-based cooperation with all stakeholders, coupled with efficient processes and the core competency in construction.
PORR’s business activities are divided into permanent business and the project business. PORR only offers its full range of services on its permanent markets. In addition to Austria, where the company has its headquarters in Vienna, this also includes all of PORR’s other European home markets: Germany, Eastern Switzerland, Poland, the Czech Republic and Slovakia as well as Romania. On its project markets of Norway, Qatar and the United Kingdom (UK) PORR focuses very selectively on export products in tunnelling, railway construction and specialist civil engineering.
Our Group Strategy
The vision “PORR – Home of Construction. To Build a Better World.” sets the direction for the Group strategy.
Four megatrends – namely demographic change, decarbonisation, the digitalisation of construction processes, and deglobalisation, i.e. the “four Ds” – serve as the framework conditions defining the future of construction.
The vision “PORR – Home of Construction. To Build a Better World.” sets the direction for the Group strategy. The strategic focus remains on Intelligent Growth with Green and Lean. In concrete terms this means expanding the leading market positions in the European home markets. This will be achieved by selectively expanding the depth of value creation and strengthening the Group’s regional presence. As a technology pioneer and with strong, Group-wide expertise in circular construction, PORR is positioning itself as a sustainable infrastructure provider. It serves as a one-stop shop for holistic solutions in all areas of construction. The primary goal is to increase the value of the company long term. And to do this for and with every stakeholder.
The Future of Building
The PORR Group strategy is influenced by complex, long-term framework conditions. The following four Ds not only define our society today but are also determining the future evolution of the European construction industry. In terms of demand, demographic change and deglobalisation are playing a decisive role. Digitalisation is having a significant impact on construction processes in particular, while decarbonisation is changing the industry as a whole.
Urbanisation: The urban population will double by 2050. This can go hand in hand with an increase in productivity and innovation. However, it also requires complex challenges to be overcome such as the creation of affordable housing, sustainable infrastructure and reliable transport systems – smart mobility, for short.
Ageing society: The global average age will increase by over five years by 2050. This is due to a longer life expectancy and a lower birth rate. Older generations will need more support and their housing needs will shift towards rehabilitation clinics and care homes. A well-developed public transport network is essential for long-term mobility.
In search of resilience for production and supply chains. Globalisation has increased growth and instability. Its weaknesses are causing many companies to rethink. Supply bottlenecks, geopolitical uncertainties and national legislation are leading to what is known as nearshoring or reshoring – this means relocating production and supply chains to one’s own country or neighbouring countries.
Regionalisation requires extensive adjustments. Shorter supply chains and increased trade within a region in turn place greater demands on local logistics. This requires long-term investment in public transport and digital infrastructure. Meanwhile, companies are focusing on building new production and storage facilities.
Plus 1.5 degrees Celsius – maximum. With the Paris Agreement, around 200 countries have made a joint commitment to stop global warming. The focus is on reducing greenhouse gas (GHG) emissions and increasing resilience to climate change. This opens up extensive new opportunities, particularly in the areas of energy and transport.
Europe: First climate-neutral continent with EU Green Deal and EUR 600 bn investment. The ultimate goal is to reduce GHG emissions by 55% by 2030. Sustainable transport, a clean energy system, the refurbishment of buildings, and the green industrial revolution are the keys to achieving this. The latter requires extensive adjustments and innovations in processes and technologies, particularly in the resource-intensive construction industry.
Level-up with artificial intelligence. New technologies are taking digitalisation to the next level. As part of NextGenerationEU, the EU is investing around EUR 250 bn in areas such as digital skills, markets and administration. In addition to artificial intelligence (AI), the programme also focuses on competitiveness in chip manufacturing, cybersecurity and big data.
Digitalisation in construction: Here to stay. Data collection with sensitive sensors and 3D scanners, process automation with robotics, 3D printers and drones – it’s all almost standard now. With building information modelling (BIM), augmented and virtual reality, artificial intelligence and digital twins, the construction industry is increasingly becoming a digital industry.
Intelligent Growth with Green and Lean
PORR continues to focus on intelligent growth. This strategy has been supplemented by Green and Lean to help shape the future of construction sustainably. The aim is to be the market leader for resource-conscious, circular construction. Partnership-based concepts and lean structures and processes are key factors for future collaboration and profitability.
The Group strategy is based on twelve action fields in four pillars: Company, Staff, LEAN and ESG. Strategic projects – the strategic project portfolio – are driven forward within this framework. The measures implemented are evaluated in a continuous strategy process based on predefined key indicators.
PORR’s ambition is not to be one of the biggest, but to be the best. This can only be achieved with the right personnel and first-class solutions. The focus is on lean, partnership-based project management. At the same time, the focus is on securing the company’s strong market position by strengthening its own construction value chain. PORR aims to achieve sustainable profitability by digitalising processes and optimising risk management. A strong equity and liquidity position as well as reliable investment management provide a stable foundation for this.
The five PORR Principles form the basis for working together at PORR. To continue to secure skilled labour and talent, the focus – in addition to occupational safety – is on establishing the company as a top employer. With the PORR Academy, PORR consistently promotes its strengths from within its own ranks, thereby ensuring staff loyalty to the company. Occupational health management (OHM) and the new social policy emphasise the company’s position on health, diversity and performance.
The more complex the projects, the more important the expertise. As a design-build contractor, PORR relies on in-house expertise and its own construction value chain. This delivers innovative solutions in design and construction from a single source. BIM has long since become the standard. At the same time, it is driving forward the development of digital future topics as a technology pioneer. Efficient and standardised processes are essential for outstanding quality and the optimised use of resources. Flexibility, cost awareness and clear responsibilities are key aspects of the ongoing LEAN transformation.
As a construction company, PORR bears a high level of responsibility to the environment. For us, sustainable construction is an opportunity and not a contradiction. Various initiatives and measures are aimed at the careful use of energy and resources. The focus is on decarbonisation and circularity. Ethical, fair and transparent behaviour is a matter of course for every member of staff and means stability. This is the only way to build long-term trust among all stakeholders and live sustainable business practices.
Foreword by the Executive Board
f.l.t.r.
Klemens Eiter, Member of the Board and CFO
Karl-Heinz Strauss, Chairman of the Board and CEO
Claude-Patrick Jeutter, Member of the Board and COO
Jürgen Raschendorfer, Member of the Board and COO
„In this tough environment, PORR delivered strong results.“
Dear stakeholders,
2023 was both an enormously exciting and challenging year for PORR. On the one hand, there were lots of opportunities in multiple areas, above all in civil engineering and infrastructure construction. Here, the European Recovery and Resilience Facility and the NextGenerationEU budget in particular ensured robust demand. Environmental and energy policy also provided strong positive impetus, with the green transformation and the energy transition as key growth drivers. The only decline experienced by the construction industry was in residential construction.
In this tough environment, PORR delivered strong results. Not only did it increase production output across the Group by 5.6% against the previous year to EUR 6,577m, it also achieved double-digit growth on the home markets of Poland, Romania and Germany. The positive trend from the previous year continued in terms of the order books. At EUR 8,452m, the order backlog increased by 3.0%, while the order intake also rose by 2.7% to EUR 6,835m.
More than half of 2023 production output came from civil engineering. The largest new orders of the year were also in this area. Leading the pack is construction lot H53 of the Brenner Base Tunnel – the largest construction lot in Austria’s history with a total contract value of almost EUR 1 bn. In the infrastructure sector, PORR is taking significant steps towards the energy transformation: We are building the cavern and tunnel system for the pumped storage power plant in Ebensee, Austria, and tunnelling under the River Elbe as part of the SuedLink project for a high-performance wind-power line. Examples like these confirm it: The construction industry is an important part of the energy transition and PORR is playing a significant role in this. Extensive new building construction projects include the oncological hospital in Wrocław and the Pomeranian Medical University in Szczecin, Poland. They show that the healthcare sector is a major growth market.
Parallel to the 4.5% increase in turnover, PORR was able to achieve a 5.8% reduction in the cost of materials versus the previous year. With the resulting very pleasing earnings before taxes (EBT) of EUR 130.7m, PORR has once again proven to be extremely resilient. The EBT margin on production output was increased to 2.0%. Earnings per share also rose sharply – growing by 34.3% to EUR 2.21.
As part of our consistent capital management, we have significantly improved our balance sheet structure. As of 31 December 2023, the equity ratio was 20.8%, and the share of equity accounted for by hybrid capital fell to 28.8%. That is not all, however: Thanks to the early refinancing of our hybrid and profit participation capital, we are now fully financed long term. The positive business and earnings performance leads us to expect a sustainable equity ratio of more than 20%. Trade receivables were successfully reduced through focused receivables management, while working capital underwent a further decrease as well. Our liquidity reserves totalled EUR 1,036.6m and we once again achieved a net cash position of EUR 40.1m. For 2024, we expect a moderate increase in output as well as growth in EBIT. In the medium term, we anticipate an increase in the EBT margin along with an EBIT margin of 3.0%.
In terms of Green and Lean, we are making great progress with the PORR 2025 future programme. We have already integrated 20 additional areas in five home markets into our LEAN transformation and successfully implemented Building Information Modelling (BIM) in several civil engineering pilot projects. As part of our photovoltaic rollout, we are fitting solar panels to the roofs of more than 30 branches. We are increasing the proportion of electric vehicles and providing the requisite charging infrastructure at the same time. In 2023, we already managed to reduce our energy intensity by 10.4%. With green electricity accounting for over 64% of the total, we cut our Scope 2 emissions by 39.3%. The circular economy is at the forefront of many innovative projects: Together with partners, we have given the go-ahead for Austria’s first gypsum recycling plant. In 2023 the PORR Group’s recycling volumes reached 2.8m tonnes. We also made significant progress in the area of occupational safety, reducing work-related injuries by 11.6%.
Shoulder-to-shoulder with our stakeholders, we were able to conclude this financial year with many success stories – with great projects, innovative and sustainable developments, and a very pleasing economic performance. We would like to thank you for the trust you have placed in us and look forward to enjoying many more successes together.