Capital Markets Day 2025: Bilfinger Advances Profitable Growth Strategy – Mid-Term Targets 2030 with 8-10% Annual Revenue Growth and 8-9% EBITA Margin
Market Development: Growing demand for Bilfinger offerings across all regions and industries in a volatile environment
Business Model: Enhancing customers’ profitability by improving their efficiency and sustainability – benefits from both growing and declining markets
Mid-Term Targets 2030: 8 to 10% CAGR (compound annual growth rate) including organic and inorganic revenue, 8 to 9% EBITA margin, and ≥90% cash conversion
Strategy Update: Accelerating sustainable profitable growth relying on two refined strategic levers
Operational Excellence: Continuously improving internal performance
Market Expansion: Stronger sales focus, capitalizing growing outsourcing demand, market expansion in core and adjacent markets, building on proven M&A track record
Updated Segment Structure: Enabling optimal strategy execution, increasing customer proximity and improved transparency to the capital markets
Frankfurt, Germany. At its Capital Markets Day 2025, Bilfinger unveiled new mid-term targets for 2030. Building on its successful strategy, the company aims to achieve an advanced average revenue growth of 8 to 10 percent annually supported by organic and inorganic revenue, elevate the EBITA margin to 8 to 9 percent, and ensure a cash conversion rate of at least 90 percent until 2030. Bilfinger is committed to delivering sustainable profitable growth and enhancing total shareholder return.
Lead by the vision to be the number 1 in enhancing efficiency and sustainability in all sectors of the process industry, Bilfinger has established a successful business model in the past years. The industrial services provider enables customers to reach their profitability targets by improving their efficiency and sustainability through its comprehensive industrial service portfolio, supported by a team of over 30,000 experts. The Bilfinger business model has proven robust in both growing and declining markets. Bilfinger has made significant progress in strategic, operative and financial terms since 2022.
Bilfinger addresses all process industry markets, especially the Chemicals & Petrochemicals, Energy, Oil & Gas, and Pharma & Biopharma. Customers are facing challenges in a volatile global environment, like increasing competition, high energy costs, labor shortage, growing bureaucracy and distortions in global trade. Bilfinger is expecting a 1 to 2 percent CAGR (compound annual growth rate) globally in its four core markets and sees strong potential in supporting customers as they focus on improving efficiency, enhancing sustainability and reducing costs.
On top of this market-driven growth, Bilfinger expects a self-propelled CAGR of 3 to 4 percent driven by an increasing outsourcing demand, and market expansion in core and adjacent markets. This will be supplemented by M&A activities which are expected to contribute a further ~4 percent CAGR over the period up to 2030. The accumulated CAGR for Bilfinger for the next five years is expected to add up to 8 to 10 percent.
An EBITA margin improvement to 8 to 9 percent will be driven by continuous operational excellence boosting internal efficiency and by market expansion through value-based selling, service bundling, digital offerings and increased value-enhancing acquisitions, all contributing to further gross margin progression.
Strategy Update: “Your Performance Is Our Business”
Today, Bilfinger presented its updated strategy. Based on the successful development in the past three years, Bilfinger is advancing with a bold customer-centric approach and ambitious market expansion strategy to focus on stronger sustainable profitable growth. Bilfinger Group CEO Thomas Schulz comments: “Our ambition builds on the strong performance of recent years, driven by the growing demand by our customers to enhance efficiency and sustainability in a volatile market. A heartfelt thank you to Team Bilfinger for their dedication and hard work. We are now advancing our profitable growth strategy.”
The two strategic levers, Operational Excellence and Positioning, remain valid and effective. The newly set targets demand fresh impulses and precise focus areas.
In Operational Excellence, Bilfinger will go on to improve its own efficiency as an ongoing task to enhance customer satisfaction and profitability. In detail, there will be specific focus on the following success factors:
People
Standardization
Procurement
De-Risking
The second strategic lever will be sharpened, expressing stronger focus on customers. It is consequently renamed to Market Expansion (previous: Positioning). The focus lies on:
Sales
M&A
Performance Partner
Innovation & Digitalization
The updated strategy aims to increase customer focus to accelerate sustainable profitable growth. As a result, Bilfinger’s internal organization will be further enhanced: The segment structure will be simplified into consistently geography-based segments.
The updated segments are
Western Europe (UK, Belgium, Netherlands and adjacent geographies)
Central Europe (DACH, Nordic and adjacent geographies)
International (Eastern Europe, Middle East, North America and adjacent geographies)
The segment Technology will become part of the Segment Central Europe, aligning customer bases and creating regional synergies on a shared geographical footprint.
The capital allocation continues to support the growth of Bilfinger while providing for attractive stakeholder returns. The dividend policy remains unchanged with a payout ratio of 40 to 60 percent of the adjusted net income. Compared to previous years, the company plans to allocate more capital for M&A activities.
Group CEO Thomas Schulz: “Our updated strategy underlines our ambition to be the number 1 in enhancing our customers’ efficiency and sustainability in volatile markets. Bilfinger is committed to sustainable profitable growth. Our strategy guides us the way to reach our new mid-term targets 2030, enhancing value for our customers, employees, and shareholders alike.”
