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Quarterly report Q1 2024

Royal Heijmans: Q1 good start in realisation of 2024 forecast

7 May 2024, 07:15


  • Heijmans reiterates its previously issued outlook: revenue of € 2.5 billion in sight; underlying EBITDA margin of at least 6.5%;
  • Heijmans sells 952 homes in period to end-April; rising trend in home sales seen since Q4 2023 is continuing, mainly to private buyers;
  • Good performance and continued growth in projects based on long-term client relationships (recurring business), including Building & Technology service activities and Infra asset management;
  • Order book remains of good quality and at healthy level.

CEO Ton Hillen:

“It is pleasing to note that we performed in line with expectations in the first quarter of 2024. Our Building & Technology and Infra business areas are even growing slightly faster. This is largely due to the continued growth in our recurring business activities. The increase in the number of home sales is also continuing. The demand for houses in particular remains as high as ever, which gives us confidence for the remainder of this year. We are also benefiting from the combined residential offering of Heijmans and Van Wanrooij, whose sales and revenue figures we have incorporated in full since the start of this this year.”

Home sales

In the period January through to the end of April 2024, Heijmans (incl. Van Wanrooij) sold a total of 952 new-build homes, which was higher than in the same period in 2023. The main improvement was in the sales of houses to private buyers (B2C) compared with last year (up more than 30% on a like-for-like basis). Sales to investors/housing corporations (B2B) remained at a similar level. The pick-up in home sales in particular is expected to result in healthy growth in revenue and profit after 2024. The structural scarcity of houses in the housing market remains as high as ever. This boosts our confidence that sales volumes in the new-build market will remain on track for the medium term.

Broader view of new-build market

At the same time, with a view to the medium to long term outlook, Heijmans is concerned about the lack of new planning capacity and the slowness in granting permits in the housing market. Without decisive action by the Dutch government, this will continue to slow down sales in the coming years. Heijmans is advocating a broader view of the new-build market, one that should lead to the right mix of new homes. Ton Hillen: “The current focus is too much on simply increasing the supply of affordable homes. Attention to this part of the market is important, but we must not lose sight of circulation in the housing market. The housing market actually benefits from new homes in the middle and higher segments, as this boosts circulation, so more existing homes become available for first-time buyers and renters.”

Recurring business 

In particular, Building & Technology’s and Infra’s service operations continue to deliver strong performances in assignments based on long-term client relationships (recurring business). Heijmans’ increased focus on these activities is resulting in stronger growth.

For instance, with effect from this year Heijmans started long-term maintenance work on the buildings of Rabobank and Royal Flora Holland. By making buildings more sustainable, optimising maintenance through data analysis and reducing energy consumption, Heijmans is responding to the growing focus on people’s well-being.

These service activities not only provide a stable revenue stream, but also offer opportunities for additional construction or renovation work.

At Infra, Heijmans’ pursuit of long-term client relationships is reflected in two framework contracts we recently signed. For Gasunie, Heijmans is one of six strategic partners working on the construction and modification of the company’s gas pipeline network in the Netherlands. The second framework contract is for the renovation and new construction of Vitens’ drinking water production sites, for which Heijmans is part of the winning implementation consortium. Water will remain an important theme in the coming years. The availability of sufficient clean drinking water plays a role in this, but so does managing the major fluctuations in water quantities, as the extremes between drought and surplus are getting ever greater. On, for example, the urban development front, Heijmans will work to transform public areas from ‘petrified’ cities to adaptive cities.

Strategy 2030

With these and other activities, we are responding well to our strategy, ‘Together towards 2030’. Meanwhile, Heijmans is working hard to continue to refine and implement this strategy, which we presented last autumn in the form of a refined vision of the future. As creators of the healthy living environment, Heijmans is well positioned to play an even more prominent role in working on integrated solutions for the complex (construction) challenges facing our country.

Capital Markets Day

On 22 May, at its Capital Markets Day, Heijmans will provide further details on the implementation of its strategy Together towards 2030, including concrete financial and non-financial targets for the coming years.

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