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Webuild: How Italy Built a Global Infrastructure Giant Through Crisis and Consolidation
On a rain-swept August morning in 2018, a 200-meter section of the Morandi Bridge in Genoa collapsed without warning, plunging cars and trucks onto the railway tracks and warehouses below. Forty-three people lost their lives in what became one of Italy's most devastating infrastructure tragedies. The bridge's destruction—a monument to 1960s engineering ambition that had become a symbol of Italian infrastructure neglect—would paradoxically launch the country's largest construction company onto the global stage.
Within months, the Italian government sped up plans to rebuild the bridge, and Genoa-born architect Renzo Piano offered to design the replacement for free. Salini Impregilo, the country's largest contractor, partnered with state-run shipbuilder Fincantieri, forming a new joint venture called "PERGENOVA" to execute the rebuild. Construction took only 15 months—a timeline that in any other era would have seemed impossible.
That company, Salini Impregilo, would soon rename itself Webuild, a name that captured both its ambition and its core identity. Today, Webuild has achieved €12 billion in total revenues and maintains a total backlog of €63 billion, with over 90% of its construction backlog related to projects linked to the United Nations Sustainable Development Goals.
This is the story of how a fragmented Italian construction sector produced a global mega-infrastructure champion through aggressive M&A during crisis—and why the playbook matters for anyone watching how industries consolidate, survive, and ultimately dominate.
I. The Origin: Building Modern Italy (1906-1990s)
Everything began in Italy, in 1906, from the union of entrepreneurs with the same values of excellence and professional ethics. They already had a great vision: to grow by building complex and lasting infrastructure that symbolised sustainable development, while also allowing current and future generations to grow.
The history of Salini-Impregilo dates back 110 years, when in 1906, in Milan and Piacenza, two men—Vincenzo Lodigiani and Umberto Girola—established their companies, constructing their first projects locally in their respective home towns. These were the seed crystals from which Italy's construction industry would grow.
The early decades of the twentieth century saw Italy transform from a fragmented, largely agrarian peninsula into an industrial nation. Infrastructure—roads, railways, water systems—served as the sinews of this transformation. The entrepreneurial families that built these projects weren't just contractors; they were nation-builders in the most literal sense.
Impregilo's own founding dates from a 1950s joint venture of three Italian companies—Girola, Impresit, and Lodigiani—to build Kariba Dam, a 430-foot-tall concrete arch impoundment on Zimbabwe's Zambezi River. A fourth partner in the dam construction, Torno, dropped out before the merger took effect. The project represented a crucial inflection point: Italian contractors had proven they could compete on technically complex mega-projects far from home.
The company was founded as Impregilo in 1960 and expanded following a merger with Cogefar-Impresit S.p.A., Girola S.p.A. and Lodigiani S.p.A. in 1994. Impregilo established a business relationship with Fisia in 1998, and acquired Todini in 2010.
Throughout this period, a parallel story was unfolding. About five years before the eventual merger, as CEO of Salini Costruttori SpA, a privately held firm founded by his grandfather in 1936, Pietro Salini perceived that publicly traded Impregilo, the largest construction firm in Italy, had become stagnant and inefficient. Salini Costruttori was a smaller company, ranked third and doing $1.4 billion a year in revenue compared to $2 billion for Impregilo.
The Salini family had built their empire in the shadows of the publicly traded giants. Family-owned and operated, they cultivated deep expertise in complex dam and hydroelectric projects—the kinds of infrastructure that required patience, technical excellence, and tolerance for remote, demanding environments. By 2009, the acquisition by Salini of Todini Costruzioni Generali SpA made Salini Costruttori the third largest construction group in Italy.
Yet even as these companies grew, Italy's construction sector remained fundamentally fragmented and politically entangled. The industry that had built the autostrada, electrified the peninsula, and connected north to south through tunnels carved from Alpine granite was beginning to show cracks—both metaphorical and, as Genoa would tragically demonstrate, literal.
For long-term investors, this early history contains an essential lesson: Webuild's DNA is built on century-old engineering excellence developed through colonial-era dam projects. The technical capabilities accumulated over generations would become the company's core competitive advantage—and the foundation for everything that followed.
II. Italy's First Proxy Fight: The Salini Takeover (2011-2014)
In the genteel world of Italian corporate governance, hostile takeovers were virtually unheard of. The interconnected web of family holdings, bank relationships, and political connections that characterized Italian capitalism made such maneuvers both technically difficult and culturally taboo. That made what happened in 2011 all the more remarkable.
In 2011 Salini, privately held, began its acquisition of Impregilo with an initial purchase of shares, reaching 25% the following year. The acquisition set a precedent in Italy because it was the first proxy fight for control of a company to occur in the country. Despite the opposition it faced from a group of investors, Salini managed to convince enough shareholders at an assembly in July 2012 to approve its proposal to replace Impregilo's board of directors with its own list of candidates.
Pietro Salini was born in Rome in 1958. After graduating in Economics and Business Administration from La Sapienza University of Rome, he began his career in the infrastructure sector, working for the family company Salini Costruttori SpA, becoming in 1994 its Chief Executive Officer. By 2011, at 53 years old, he was ready for his biggest gamble yet.
Proxy contests are extremely rare in Italy, but this past week a shareholders' meeting resulted in a surprising upset in the fight to gain control of Impregilo, one of the leading construction companies in Italy. The fight has developed into a highly contentious match between two determined opponents. In short, this rare victory against an entrenched controlling shareholder group demonstrates that monumental change can be accomplished when shareholders collaborate on strategic votes—a concept which, until recently, was unimaginable in Italy. Additionally, the case will test uncharted legal waters in Italy, setting the course for similar action in the future.
The Salini and Gavio families each owned just under 30% of the Company's share capital through Salini S.p.A. and Igli S.p.A., respectively. The battle lines were drawn between two powerful Italian construction dynasties, with the outcome uncertain until the final votes were tallied.
After his early win, Mr. Salini expressed a desire to focus Impregilo in the construction sector through sale of its non-construction assets and to push through a merger with his own company, Salini Costruttori. On the other side of the ring, the Gavios were shouting for disqualification. They were challenging the validity of the vote, claiming that Salini failed to disclose essential information and acted in concert with Amber Capital, thus requiring them to make a full bid for the company.
The drama continued through 2013. In July 2012, after both a proxy fight and a board meeting aimed at changing current management, Salini was appointed chief executive officer of Impregilo. In April 2013, after a voluntary public tender offer for Impregilo, Salini Group took over 92% of Impregilo, paving the way for the formal merger of Salini into Impregilo. In 2014 Salini was appointed as chief executive officer of the new Salini Impregilo group.
During 2013, with the signing of the merger by incorporation of Salini S.p.A. into Impregilo S.p.A., effective as of 1 January 2014, the "Campione Nazionale" (National Champion) project was completed. It is geared toward creating a world leader with the expertise, skills, track record and scale required to compete in the global construction industry through more efficient and effective business management.
The two Boards of Directors of Salini and Impregilo also approved the Salini Impregilo Group business plan for 2013-2016, which envisaged significant development of the operations of the combined company. Consolidated revenue was projected to grow by approximately 16% per annum, reaching a total of €7.4 billion in 2016. The current backlog, amounting to approximately €20 billion, would provide around 60% of revenue during the period of the plan.
On 31 May 2013, Pietro Salini was honoured with the title of Cavaliere del Lavoro (Knight of Labour, for his service to industry), and on 11 December 2013 he won the Tiepolo Award in Madrid for the deal that resulted in the takeover of Impregilo.
The proxy fight established several principles that would define Webuild's future: aggressive financial engineering, willingness to challenge entrenched interests, and the conviction that scale matters in construction. Pietro Salini had proven he could play hardball in the boardroom. Now he needed to prove his strategy could work on construction sites around the world.
III. The Panama Canal: Engineering the Eighth Wonder (2007-2016)
If there was a single project that established Webuild's reputation for tackling the impossible, it was the expansion of the Panama Canal—a project that would test every assumption about mega-project economics, consortium dynamics, and geopolitical risk.
Dubbed the "eighth wonder of the world," the new Panama Canal has essentially opened a second route between the Atlantic and Pacific Oceans, dramatically changing the landscape of global trade. Constructed by an international consortium, Grupo Unidos por el Canal (GUPC), led by Webuild, this project allows the giants of the sea to cross the Central American isthmus without needing to circumnavigate South America, reducing the journey to around 10 hours and saving almost 3.5 million liters of fuel.
One century on from the foundation of the Panama Republic and, even more significantly, from the inauguration of the Canal, international trade prepared another phase of international growth, thanks to the expansion of the Canal that bisects the continent and unites the Atlantic with the Pacific. The expansion programme actually involves the construction of a new Canal alongside the original, opened in 1914, usable by ships 366 m long, with a capacity of up to 12,600 containers—three times the current limit. It includes several parts, the most significant of which is the Third Set of Locks project, which was assigned to an international consortium called the Grupo Unidos por el Canal (GUPC), made up of leading infrastructure and engineering companies: Italy's Salini Impregilo—now Webuild—Spain's Sacyr, Belgium's Jan de Nul, together with CUSA from Panama.
The engineering challenges were staggering. Specifically, the project involved the construction of two sets of triple step locks: one triple step lock on the Atlantic side and one on the Pacific side. These locks allow ships to be raised from the level of the oceans to Gatun Lake (midway between the two oceans), and vice versa, in less than two hours. Each of the three chambers that make up each lock is 55 metres wide, 427 metres long and 23 to 33 metres deep, and is equipped with horizontally sliding gates systems which can overcome the difference in level of approximately 27 metres between the oceans and Gatun Lake.
But the project became notorious for its disputes. The two-month standoff over costs that threatened to derail an ambitious $5.2-billion expansion to the Panama Canal ended February 27, 2014, when the owner and contractor building the locks portion of the project agreed to a financing plan to complete work on schedule. The crisis began on December 30, 2013 when GUPC notified the canal that it would stop work on the locks if the authority would not pay for growing cost overruns. Canal officials responded that the contractor was obligated to continue work and that any claims would have to be evaluated in the arbitration process. The two sides began meeting regularly in January to discuss the impasse but, on February 4, the contractor stopped work.
While GUPC had claimed, in public statements, that cost overruns had reached $1.63 billion, the actual amount of increased costs on the project remained unclear. The Spanish company Sacyr, which has a 48% stake in GUPC, reported losses of almost $1.38 billion in the past two years. According to its filing, $175 million in Sacyr's writedowns were associated with the Panama Canal expansion.
Despite the turmoil, the project was completed. The expanded canal began commercial operation on 26 June 2016. The first ship to cross the canal using the third set of locks was a modern New Panamax vessel, the Chinese-owned container ship "Cosco Shipping Panama."
August 31, 2024, was a special day for global maritime trade: the MSC Marie, a massive container ship with 17,640 TEUs, measuring 366 meters in length and 51 meters in width, with a draft of 14.53 meters, traveled from the port of Manzanillo in Mexico through the Panama Canal, setting a Guinness World Record as the largest vessel ever to cross the Canal. This record was made possible thanks to the expansion of this colossal hydraulic engineering project, including the construction of a third set of locks inaugurated in 2016. With this expansion, a true "new Panama canal" was created, in addition to the original one opened in 1914.
Since the expanded canal entered into operation, the Panama Canal Authority has generated more than $3 billion in annual revenues from tolls thanks to the perfectly functioning infrastructure, a unique example of performance and efficiency.
The litigation continues to this day. Webuild also started an arbitration against the Republic of Panama before the International Centre for Settlement of Investment Disputes (ICSID) regarding its own investment in the project. The value of the dispute is estimated at over USD 2 billion.
For investors, Panama represented both Webuild's engineering prowess and the brutal economics of mega-project construction. The company proved it could deliver technically, but the financial battles underscored why construction remains one of the world's most challenging industries.
IV. The American Bet: Lane Industries (2016)
Having established its mega-project credentials in Panama, Pietro Salini turned his attention to the world's largest infrastructure market. The United States, with its aging highways, crumbling bridges, and perpetually promised infrastructure spending, represented both opportunity and challenge for a foreign contractor.
Lane is the top highway contractor and top private asphalt producer in the US. It is a family-owned business with more than 100 years of history specialized in heavy civil construction and in the transportation infrastructure sector with approximately $1.5 billion turnover. The company has three divisions: asphalt production, road projects and other infrastructure projects, in both domestic and international markets. Lane is the largest US private producer of asphalt, as well as the top highway contractor in the US. Thanks to its strong track record, technical experience and the strategic location of its materials plants, Lane is participating in some of the largest and most complex projects in the US, such as the highway construction in Florida, the I-4 Ultimate, a $2.3 billion contract, in which Lane has a 30% stake.
The value of the transaction was equal to approximately $406 million net of adjustments that will be defined at closing and takes into account the value of Lane's stakes in JVs. Salini Impregilo financed this transaction with available cash, existing credit lines and new financing available at closing. The acquisition was expected to close in January 2016, subject to the approval of Lane's shareholders and the satisfaction of other customary conditions, including compliance with US antitrust requirements.
Pietro Salini commented: "The Lane acquisition will be a key milestone in the development of our company. After the completion of the merger between Salini and Impregilo in January 2014, we demonstrated our ability to integrate businesses, to create value for our shareholders and to achieve our business plan target, profit and enhancement of human resources."
In early 2016, Lane merged with the Webuild Group (previously Salini Impregilo Group), a global construction leader specializing in sustainable mobility, hydroelectric energy, water, and green buildings. For 135 years, Lane has been building the infrastructure Americans count on every day. From humble beginnings and a $10,000 investment, Lane has endured many challenges over its storied history. Today they are writing a new chapter with Webuild, sharing a global vision, talent, innovation, and a common mission. With a legacy that equals trust, they are shaping more livable communities, respecting all environments, and aiming at excellence.
Lane's history stretched back to the very birth of American automobile culture. Lane's company roots can be traced back to 1890, where railroad entrepreneur John S. Lane started a stone-crushing operation for railroads and streets. By the turn of the century, the road construction arm of Lane quickly became a success, paving 75,000 square yards of macadamized road (a mixture of stone, sand, and raw asphalt) in 1895 alone. Realizing the demand for roadway improvements triggered by the invention of the automobile, John S. Lane shifted focus.
In the 1940s, during World War II, Lane expanded its project portfolio to include military bases to support the war effort. During the 1950s and 1960s, Lane helped make the Interstate Highway System a reality, building some of the nation's most well-known superhighways, including the New York Thruway, the Connecticut Turnpike, and the Massachusetts Turnpike.
The acquisition gave Salini Impregilo something it had never had: a stable, profitable base in a politically stable market with strong infrastructure spending trends. For Salini, lowering his company's risk profile was the next challenge in his quest for growth.
The U.S. strategy also addressed a structural weakness. Salini Impregilo generates more than 90% of its revenue outside its domestic market, Italy. Salini's international success has been at the expense of securing a large domestic market share. The company gets only 10% of its revenues in Italy, a situation unlike that for its rival global construction companies.
Lane now competes directly with the world's largest construction companies. Through its business units in the United States, VINCI Construction is a market leader in roadworks on the east coast, with operations in 10 eastern states and in Texas. For construction works, its main competitors are Archer Western Contractors (Walsh Group) and Lane Construction (Webuild).
V. Progetto Italia: Consolidating a Fragmented Industry (2019-2021)
While Webuild had been expanding globally, Italy's construction sector was collapsing. The combination of the 2008 financial crisis, subsequent European sovereign debt crisis, and endemic corruption scandals had devastated the industry. Competitors that had once been formidable were now struggling to survive.
About 60% of the top 250 groups in the world generate 75% of their revenues in their respective home markets. Such is the case for Vinci in France, ACS in Spain, Skanska in Sweden and Strabag in Austria. In Italy, more than 27% of projects in terms of value have gone to foreign builders in the past 15 years.
Pietro Salini saw an opportunity—and a responsibility. If Italy's construction sector continued to fragment, the country would lose not just jobs and economic activity, but also the engineering expertise that had made Italian builders legendary.
It was a long road to get here, but Italy's second largest construction company, Astaldi, cashed in the approval on its creditor composition proposal. Webuild Group (formerly Salini Impregilo) is now ready to invest in Astaldi, creating one of Europe's leading firms in the infrastructure construction sector. The deal is part of the Progetto Italia project, which can now begin in earnest after the Court of Rome approved Astaldi's creditor composition proposal and published the official ruling.
The operation concluded Astaldi's restructuring after coming close to bankruptcy, and marked the most important acquisition under Progetto Italia, Webuild's initiative to consolidate the fragmented construction industry in Italy in which many companies are under financial strain. Progetto Italia supports the revival of the infrastructure sector in Italy and in 2020 contributed to relaunching strategic projects worth more than €3.6bn, including the Verona-Padua high-speed railway, the Ionian motorway and the railway hub in Genoa.
The operation was completed by means of a capital increase by Astaldi equal to €225 million in cash and reserved for Webuild. The proceeds raised would finance Astaldi as an ongoing concern and also pay off privileged and pre-deductible creditors. Webuild financed its participation with cash raised from a capital increase in November 2019 that was entirely subscribed and paid-in by Salini Costruttori, CDP Equity, Banco BPM, Intesa Sanpaolo, UniCredit and other institutional investors.
"The merger between Webuild and Astaldi," commented the CEO of CDP Fabrizio Palermo, "represents an important piece of Progetto Italia, launched in 2019 with the support of Cassa Depositi e Prestiti and aimed at creating the Italian champion in the construction sector. Thus was born a group characterized by unique skills that allows it to seize significant business opportunities for the development of complex infrastructures on international markets, with benefits for the entire Italian construction chain and in particular for small and medium-sized companies."
Webuild CEO Pietro Salini said: "For Webuild Group, this is a moment that evokes a great sense of accomplishment. It opens the way for a bigger and more competitive group that looks at the future of the sector in Italy with optimism. Webuild's acquisition of 65% of Astaldi allows us to complete the biggest operation under Progetto Italia and focus on the best business opportunities to be found in the market."
With the acquisition of Astaldi, the new Group would have approximately 70,000 direct and indirect employees at a time when employment is a priority for countries, especially Italy.
The financial structure of Progetto Italia was notable for its involvement of Italian institutions. "The operation was made possible thanks to the contribution made by Italy's main public and private institutions – CDP Equity, Intesa Sanpaolo, UniCredit and Banco BPM – and a large pool of qualified investors including businessman Leonardo Del Vecchio who believed in an initiative that, just a year ago, seemed an ambitious idea and yet, today, has become a reality."
The deal diluted the Salini family's control but created something unprecedented in Italian construction: a national champion with the scale to compete against European giants.
VI. The Genoa Bridge: Italy's Moment of National Redemption (2018-2020)
Few infrastructure projects carry the symbolic weight of the Genoa San Giorgio Bridge. Built to replace the collapsed Morandi Bridge, it became a testament to what Italy could accomplish when political will, engineering excellence, and industrial capability aligned.
August 14, 2018, 11:36 a.m.: A huge rumble broke Genoa's silence. Ceaseless rain poured down on the city, that day. A section of the Polcevera Viaduct—known as the Morandi Bridge—collapsed, causing 43 victims. The cause was structural: some parts of the viaduct just did not resist. The collapse of Genoa's Morandi Bridge concerned a 150 metre-long section, due to which, in addition to the 43 victims, 566 people also lost their homes.
One of the most tragic events in Europe in 2018 was the collapse of the Morandi Bridge in Genoa, Italy on August 14th, claiming 43 lives. In the aftermath of the disaster, Genoa-born architect Renzo Piano offered to donate the design of a bridge to replace the old one, having been deeply affected by the tragedy. In a positive development before the year ends, Genoa's mayor announced that Piano would lead a €200-million project for the bridge's replacement, inspired by Genoa's historic maritime prominence.
Italian architect Renzo Piano designed a €202 million bridge for his hometown of Genoa. In a statement Piano said it was a "great honour" to design the motorway bridge, which he did for free out of a sense of "civic spirit."
The abrupt collapse of the bridge created an east-west rift within Genoa costing an estimated loss of EUR 6 million per day. Its strategic importance coupled with the tragedy of the collapse formed a catalyst for rebuilding of the bridge to be undertaken in the shortest possible time by "cutting through the red tape" that traditionally slows the execution of similar large infrastructure projects. The accelerated delivery of the New Genoa Bridge was enabled by an Italian Law referred to as the "Genoa Decree" which refers to EU directive (2014/24/EU) to allow approvals to be gained and procurement undertaken in the shortest possible time.
Constructed by the Webuild Group and completed on 3 August 2020, the new Genoa San Giorgio viaduct is 3500 feet long, 101 feet wide and 147 feet high. Built with a structure made of a mixture of steel and concrete, it has 19 spans and is supported by 18 elliptical-shaped piers. A particular feature of the bridge designed by Renzo Piano is the deployment of 4 mobile robots that, moving along the rails placed on the outside of the bridge, monitor the condition of the bridge.
On the 3rd of August 2020 marked the opening and inauguration ceremony of the new replacement structure of the Polcevera viaduct in the presence of the Italian President Sergio Mattarella, Prime Minister Giuseppe Conte, and the bridge architect and native Renzo Piano.
The bridge's completion during the COVID-19 pandemic amplified its symbolism. Just 18 months after the demolition of the original bridge, a new bridge was inaugurated. At a time when Italy was reeling from one of Europe's worst coronavirus outbreaks, the bridge's opening offered a rare moment of national pride.
The Genoa bridge is a test case for Progetto Italia. PerGenova is a joint venture established by Fincantieri and Salini Impregilo to design and build the Polcevera Viaduct on Italy's A10 motorway. "The joint venture represents an example of collaboration between two large companies that complement each other and put to the service of Genoa and Italy their unique expertise, acquired through many years of global experience."
The project's timing was perfect for another reason: it coincided with the company's rebranding from Salini Impregilo to Webuild—a name that encapsulated the company's evolved identity as a global builder rather than a collection of Italian family companies.
VII. Becoming Webuild: A New Identity for a Global Company (2020)
The company is the most recent chapter of a centenary story that keeps looking towards the future. The name Webuild, launched in 2020 is a further step in Salini Impregilo's history: An evermore global group with strong roots in Italy. A project for growth created as part of "Progetto Italia", the operation to consolidate Italy's construction sector, promoted by Salini Impregilo, to create a large construction group capable of supporting the sector's recovery in the country, while also making Italian companies more competitive on the international markets.
The name change wasn't merely cosmetic. It reflected a fundamental transformation in the company's strategic positioning. "Webuild" communicated several things simultaneously: the collective ("We"), the core activity ("Build"), and an implied digital-era modernity.
The rebranding occurred at a pivotal moment. The company had just completed Italy's most symbolic infrastructure project. It had absorbed Astaldi and integrated its workforce. And it was positioning itself for a wave of infrastructure spending driven by climate concerns, aging transportation networks, and pandemic-induced stimulus programs.
The group is organised into four business areas: Clean Hydro Energy, Clean Water, Sustainable Mobility, Green Buildings. This structure positioned Webuild squarely within the sustainability narrative that had come to dominate infrastructure policy discussions globally.
The company's projects include 313 dams and hydroelectric plants; 13,319 kilometres of railway lines; 3,408 kilometres of underground works, 821 kilometres of which are subway lines; 82,533 kilometres of roads and highways; and 1,020 kilometres of bridges and viaducts.
VIII. The Australian Play: Acquiring Clough (2022-2023)
Australia represented Webuild's next major geographic expansion. The country's infrastructure needs—driven by population growth, aging assets, and the energy transition—created a compelling investment thesis. The question was how to build a meaningful presence quickly.
In February 2023, Webuild announced it had signed the contract with the Deloitte Administrators of Clough Limited in Australia to acquire Clough assets. The final acquisition perimeter comprised Clough's organisation, including offices, trademarks, credentials, business references, senior management and office personnel, and more than €4 billion worth of projects in backlog (as of end 2022), including the related project workforce.
The opportunity arose from Clough's financial distress. Clough was placed in voluntary administration as its ability to continue as a going concern was dependent on third party funding which Murray & Roberts had stated it was unable to supply.
The total value of the transaction was equal to approximately AU$35.9 million (€23.4 million). For that price, Webuild acquired the integration of Webuild and Clough, guaranteeing the continuity of Clough's projects and ongoing employment for 1,100 Clough employees, creating a Group that ranks among the largest and oldest in Australia.
Founded in Perth in 1919, Clough is a pioneer in the country's construction industry. Landmark projects include the National Mutual Building, the first high-rise in Perth, and the Graham Farmer Freeway, the first major underground freeway tunnel in Western Australia. The integration of the two groups brought Webuild to an overall order backlog in Australia of over €12 billion, including projects for which they are preferred bidders, and around 3,000 employees.
The Clough acquisition immediately plugged Webuild into Australia's most significant infrastructure project: Snowy 2.0, the country's largest renewable energy initiative.
Australia's Snowy 2.0 hydroelectricity scheme has undergone a 'reset' of its contract model and scope after updated figures revealed it will cost six times more than originally planned. Snowy 2.0 in New South Wales is being built by Future Generation (FGJV)—a joint venture between Webuild, Australian firm Clough and an American subsidiary of Webuild called Lane Construction for project promoter Snowy Hydro. The scheme will link the higher Tantangara Reservoir with the lower Talbingo Reservoir via tunnels through the Snowy Mountains and involves a hydroelectric power station 800m underground between the two reservoirs. Snowy Hydro confirmed that the scheme was now expected to top AUD$12bn (£6bn).
In 2024 Snowy Hydro hit reset on the project, replacing the $5.1 billion fixed-price main works contract with a cost-plus contract which doubled the bill to $12 billion. It also adjusted the completion date to December 2028—the sixth such change.
The Snowy 2.0 experience illustrates both the opportunities and risks in mega-project construction. In light of the cost hikes, the scheme's fixed-price EPC contract—a type of contract used to undertake construction works by the private sector on large-scale and complex infrastructure schemes—has now been deemed not "fit for purpose." However, Snowy Hydro and FGJV are finalising an amendment to contract. The amendment will entail an incentivised target cost contract model, designed to enable closer collaboration, stronger oversight and alignment of interests between Snowy Hydro and FGJV.
Australia is currently Webuild's second largest market after Italy with an order backlog of €8.9 billion, including projects for which Webuild is the preferred bidder, and a workforce of more than 1,800 people. This dynamic market has seen Webuild build iconic projects, such as the Perth Airport Line, previously known as the Forrestfield-Airport Link, which was opened on October 9, 2022. Construction investments in the Australian market are expected to reach more than €300 billion in the 2022-2025 period.
IX. Building the Future: Current Projects and Strategic Position (2023-Present)
Webuild's current project portfolio reads like a catalog of the world's most ambitious infrastructure undertakings. From the world's tallest dam in Tajikistan to the proposed longest suspension bridge across Italy's Strait of Messina, the company operates at the frontier of what's technically feasible.
The Rogun Dam: Engineering the Impossible
The Rogun Dam, built by Webuild in Tajikistan and set to become the tallest dam in the world, will soon reach a new milestone: an elevation of 1,110 metres above sea level. Rogun, when finished, will be 335 metres in height and will have an installed capacity equivalent to three nuclear reactors, supplying energy to approximately 10 million people, doubling Tajikistan's energy production and contributing to the region's energy stability. The Rogun project is one of the most significant examples of the Webuild Group's commitment to sustainable development and energy security for nations.
The Rogun Hydropower Project consists of the construction of a 335-metre-high clay core rockfill dam, the tallest in the world, on the Vakhsh River. The dam is located in Pamir, one of Central Asia's main mountain ranges. The huge energy potential of the new dam will allow Tajikistan to become a regional reference point in the sector, doubling the current energy production of the nation, while contributing in a significant way to reducing the energy shortages that occur each year during the winter season. The agreement between Webuild and OJSC "Rogun Hydropower Project" (the state-run company that is coordinating the project) concerns the exploitation of the Rogun's huge hydroelectric potential and includes building according to stages.
Construction of the dam began in 1976, when Tajikistan was part of the USSR, but stopped when the Soviet Union dissolved in 1991. Work resumed in 2008, but was suspended in 2012. The project's current phase began in 2016, when Salini Impregilo—now known as Webuild—was appointed main contractor. The dam's cost then was estimated at $3.9bn.
Unit 5 and 6 each have a capacity of 600 megawatts (MW). The early generation has allowed Tajikistan to reduce power shortages suffered during the winter months, and export part of the electricity produced to neighbouring countries. Once all six turbines each with a capacity of 600 MW have been installed and the project completed, Rogun will have a total installed capacity of 3,600 MW (the equivalent of three nuclear power plants), making it the most powerful hydroelectric station in Central Asia.
Italian High-Speed Rail Network
Webuild plays a central role in Italy's high-speed rail network development, constructing multiple sections of the national system. Growth was driven by activities in Italy (Milan-Genoa, Verona-Padua high-speed/high-capacity railways, Naples-Bari and Palermo-Catania-Messina high-speed railways), Australia (Snowy Hydro 2.0, SSTOM Sydney Metro, Ceres urea plant and Melbourne's North East Link) and Saudi Arabia (Trojena dams and Connector South).
Ongoing projects include the New Genoa Breakwater, the Brenner Base Tunnel, the Pedemontana Lombarda Highway, Metro di Roma's Line C, the Genoa-Milan and Naples-Bari high-speed/high-capacity railways, the Palermo-Catania-Messina high-capacity railway, the Snowy 2.0 hydropower scheme in Australia and the Dams System in Trojena in the Kingdom of Saudi Arabia.
X. The Strait of Messina Bridge: Italy's Ultimate Mega-Project
No project better encapsulates both Webuild's ambitions and the political complexity of Italian infrastructure than the proposed Strait of Messina Bridge—a project that has been debated, planned, approved, cancelled, revived, and cancelled again over decades.
The Strait of Messina Bridge is a proposed 3.6-kilometre suspension bridge across the Strait of Messina, connecting Torre Faro on the Italian island of Sicily with Villa San Giovanni in Calabria on the Italian mainland. If built, it would be the longest suspension bridge in the world and part of the Berlin–Palermo railway axis of the Trans-European Transport Networks. While a bridge across the Strait of Messina had been proposed since ancient times, the first detailed plan was made in the 1990s, for a suspension bridge.
The project was cancelled in 2006 under Prime Minister Romano Prodi, revived in 2009 under Silvio Berlusconi, and cancelled again in 2013 under Mario Monti. It was resurrected again in 2023 under Giorgia Meloni and received final government approval in August 2025. However, in October, Italy's Court of Audit rejected the proposal to build the bridge.
In April 2021, the CEO of Webuild, Pietro Salini, in a joint press conference with the President of the Sicilian Region, Nello Musumeci, announced that he was ready to build the Strait of Messina Bridge, starting immediately with the work and on the basis of the executive project and construction site approved definitively in 2013. He declared that he already had the four-billion-euro coverage necessary for the construction and that he could obtain the other two necessary for the infrastructures connected to it from private financing.
On 16 March 2023, the Italian government, under Prime Minister Giorgia Meloni, with Matteo Salvini as Minister of Infrastructure and Transport, approved a decree to proceed with the construction of the bridge by remodeling the existing project. On 19 March, Webuild's Pietro Salini said work on the bridge should begin by 2024, with the project scheduled for completion in 2032.
The Interministerial Committee for Economic Planning and Sustainable Development (CIPESS) gave the final approval to the project at a meeting in Rome, the League party of Deputy Prime Minister and Transport Minister Matteo Salvini said. According to the Messina Strait Company, the bridge will be completed in 2032.
The Company has completed other important steps, such as signature of the addendum to the concession agreement with the grantor, the Ministry of Infrastructure and Transport and of the four addenda to the contracts with the General Contractor, Eurolink, led by the Webuild Group.
However, regulatory challenges emerged. The Audit Court said Thursday that its controversial decision to refuse to give the green light to the government's project to build a bridge across the Strait of Messina was based "strictly on legal profiles" regarding the CIPESS economic planning committee's resolution approving it. It said the ruling made "no kind of assessment on the appropriateness and merit" of the project.
The Italian Court of Auditors—which oversees public spending—said it would release the full reasoning behind its rejection within 30 days. During a hearing on 29 October, the judges questioned whether the 2005 tender for the project still held, citing a mismatch in projected costs and whether it complied with EU competition rules.
Both Meloni and Salvini have said they will respond to the court's reservations about the bridge. Even if the court is not satisfied, they can still press ahead with the project. "The Court of Auditors acts as an auxiliary body, as a control body of the government," explained one expert. "It does not have the last word."
The bridge has been regarded as highly controversial due to the impact of earthquakes, strong currents in the strait, concerns about disruption of bird migration routes, and possible infiltration of the mafia groups Cosa Nostra and 'Ndrangheta into construction projects. Seismic activity and strong winds have been cited as the largest structural issues the bridge faces. The span must withstand earthquakes with a maximum intensity of 7.8 Mw, greater than the 1908 Messina earthquake.
The Messina Bridge remains a material regulatory and political risk. Given the approval process is still being finalised on the Strait of Messina bridge project, S&P said it did not include the potential financial-economic impact of the project in its current estimates, preferring to qualify it as a possible upside. The agency said a project of this kind demonstrated Webuild's advanced managerial and engineering capabilities to deliver large, complex infrastructure.
XI. Financial Performance: A Transformation in Numbers
Webuild's financial trajectory tells the story of its strategic transformation more eloquently than any corporate presentation. The company has evolved from a collection of struggling Italian contractors into a growing, profitable global infrastructure group.
2024: A Record Year
Webuild Group concluded 2024 with record-breaking results, exceeding the ambitious targets set for the year. It reported double-digit growth, with revenues of €12 billion—up 20% compared to 2023 and above guidance of more than €11 billion.
The financial structure was further strengthened with a net cash position of €1,445 million (compared to a guidance of >€400 million), maintaining a net cash position for the fourth consecutive year. Gross leverage continued to decline to 2.9 times, reaching a level better than the leading international players of the industry.
The group now expects 2025 revenue to exceed 12.5 billion euros, up from a previous target of up to 11 billion euros, and core profit to exceed 1.1 billion euros, previously forecast at 1.05 billion euros. It won 13 billion euros worth of new orders in 2024, 80% of which abroad.
First Half 2025: Continued Momentum
Revenues reached €6.7 billion, up 22% compared to the first half of 2024, while EBITDA rose significantly by 38% year-on-year.
This growth was accompanied by significant margin expansion, with EBITDA rising 38% to €564 million and EBITDA margin improving to 8.4% from 7.5% in the previous year.
Webuild has maintained a net cash position for the sixth consecutive semester, ending the period at €275 million. The company's financial discipline is evident in its reduced gross leverage, which improved to 2.6x from 3.0x at the end of 2024.
Credit Ratings: Approaching Investment Grade
The credit rating agencies have validated Webuild's transformation with a series of upgrades.
Fitch Ratings has upgraded its rating for Webuild to "BB+" from "BB" and given it a Stable Outlook, putting the Group only one step from becoming investment grade.
International ratings agency S&P Global Ratings has upgraded its rating on Webuild to "BB+" from "BB", with a stable outlook. It is the second upgrade made by the agency during the execution of the Group's 2023-2025 business plan, confirming the soundness of its business model, its strategic vision and financial performance despite macroeconomic complexities.
Fitch raised the Long-Term Issuer Default Ratings (IDR) of Webuild to 'BB+' from 'BB', maintaining a stable outlook. The upgrade reflects expectations of Webuild's solid business profile, strong revenue visibility, and improved contract structures that allow for incremental cost pass-through, supporting margins. The rating upgrade also takes into account Webuild's improved financial structure, with net EBITDA leverage expected to stay under 1.5x for the period of 2025-2028, and gross EBITDA leverage projected to be less than 2.5x for 2026-2028.
S&P forecasts Webuild's adjusted EBITDA to reach €1.1 billion-€1.3 billion in 2025-2026, up from €978 million in 2024. The company's EBITDA margins are expected to improve to 9.0%-9.4% in 2025 and further strengthen to 9.5%-10.0% in 2026-2027, compared to 8.3% in 2024.
Approximately 90% of Webuild's order backlog and revenue now come from countries with low geopolitical and economic risk, a significant increase from 59% in 2018. This strategic shift has been supported by acquisitions and expansion in Italy and Australia.
Guidance and Outlook
In light of the results, as well as Webuild's strong positioning in a rapidly expanding market, and the solid platform developed over time, the Group is revising upwards its 2025 targets outlined in its ambitious "Roadmap to 2025 – The Future is Now." It sees revenues exceeding €12.5 billion compared with the previous target of €10.5-11 billion, EBITDA exceeding €1.1 billion against a previous €990-1,050 million target, and a net cash position at more than €700 million compared to the previous guidance of a positive net cash balance.
XII. Competitive Landscape and Strategic Positioning
Webuild operates in a sector dominated by European giants—primarily French and Spanish companies that have built global empires over decades. Understanding where Webuild fits in this competitive landscape is essential for assessing its long-term prospects.
The European Construction Hierarchy
At the top of the list is Vinci, another French construction giant, with €68.5 billion in sales. Vinci's dominance is attributed to its diversified portfolio, which includes construction, concessions, and energy services. Its involvement in public-private partnerships (PPPs) and sustainable initiatives, such as carbon-neutral building solutions, allowed it to remain competitive in 2023. Vinci's key projects, including the UK's HS2 rail line, further underscored its ability to take on large-scale infrastructure challenges despite global economic volatility.
Vinci remains Europe's construction titan, with its revenues edging higher in 2025. Its robust performance is driven by a diversified portfolio that spans mega infrastructure—such as the B247 highway in Germany—and ambitious sustainable projects. Vinci continues to invest in digital construction and green building solutions.
Spanish powerhouse ACS Group continues to challenge global leaders by leveraging its robust international presence—especially in the US and Australia. According to recent industry updates, ACS's international revenue remains nearly on par with Vinci's, reflecting its strategic investments in sustainable infrastructure, concessions, and digitalization initiatives. The company's renewed focus on advanced technologies is helping it streamline operations amid market volatility.
Balfour Beatty's commitment to digitalisation and green construction continues to strengthen its position as a leading UK contractor. Italy-based Webuild, formerly known as Salini Impregilo, ranked ninth with substantial contributions to major infrastructure projects globally.
Webuild's Differentiated Position
Webuild has carved out a distinct position within this competitive landscape. Webuild S.p.A. is an Italian industrial group specializing in large-scale construction and civil engineering projects across five continents. Founded in 2014 through the merger of Salini and Impregilo, and headquartered in Milan and Rome, the company has rapidly become Italy's largest engineering and general contractor. In fiscal 2024, Webuild reported revenues of €11.79 billion, EBITDA of €967 million, and net income of €199.5 million, with 2025 guidance aiming for revenues above €12.5 billion and EBITDA exceeding €1.1 billion.
An extensive €63 billion order book provides clear medium-term revenue visibility—over five times 2024 sales—and underpins ambitious 2025 guidance for continued growth. Operating in over 50 countries across all continents, Webuild's geographic diversification mitigates regional downturns and leverages high-growth markets in Asia and the Americas. With more than 90% of its backlog linked to UN Sustainable Development Goals and strong ESG commitments, Webuild positions itself as a preferred partner for green infrastructure initiatives.
Webuild is a global leader in the construction of hydropower projects, with a track record of more than 300 dams and hydropower plants with a combined production capacity of approximately 52,900 MW.
XIII. Playbook: Strategic Lessons from Webuild's Transformation
Webuild's evolution from a collection of Italian construction firms into a global infrastructure champion offers several strategic lessons that extend well beyond the construction industry.
1. Consolidation as Strategy
Webuild demonstrated that in fragmented, crisis-prone industries, aggressive consolidation can create sustainable competitive advantage. The company's willingness to rescue Astaldi from bankruptcy—at a time when conventional wisdom suggested avoiding such risks—positioned it as Italy's undisputed construction leader.
The Progetto Italia initiative showed how to structure complex multi-stakeholder transactions. By involving CDP Equity (Italy's sovereign investment fund), major banks, and institutional investors, Webuild created alignment among parties that might otherwise have been adversaries.
2. Mega-Project Expertise as Competitive Moat
The company's focus on technically complex projects—from the Panama Canal to the world's tallest dam—creates barriers to entry that protect margins. Not every contractor can bore through the Snowy Mountains or build a dam in Tajikistan's extreme climate. This expertise, accumulated over more than a century, represents a form of intellectual capital that's difficult to replicate.
3. Geographic De-Risking
Approximately 90% of Webuild's order backlog and revenue now come from countries with low geopolitical and economic risk, a significant increase from 59% in 2018. This strategic shift has been supported by acquisitions and expansion in Italy and Australia.
This transformation from an emerging-market-focused contractor to one concentrated in stable, developed markets fundamentally changes the company's risk profile—and its valuation parameters.
4. Contract Structure Evolution
The Snowy 2.0 experience illustrates an industry-wide shift from fixed-price EPC contracts toward more collaborative arrangements. The EPC was deemed no longer "fit for purpose." The amendment will entail an incentivised target cost contract model, designed to enable closer collaboration, stronger oversight and alignment of interests.
XIV. Bull Case / Bear Case Analysis
Bull Case
Structural Infrastructure Spending Tailwinds: Global infrastructure investment is being driven by multiple structural forces—climate adaptation, energy transition, aging developed-market assets, and urbanization in emerging markets. Webuild is positioned to capture significant share of this spending.
Portfolio Quality and Backlog Visibility: The €63 billion backlog provides visibility extending six or more years, with over 90% in low-risk markets. This is exceptional for a construction company and supports more utility-like valuation multiples.
Margin Expansion Potential: Fitch expects Webuild's EBITDA margins to stabilize at 8% in 2025, before rising to 9.8%-10.3% for 2026-2028. This increase will be driven by cost-reduction initiatives and high-margin contracts secured over the past 12 to 15 months, particularly in Italy, where the company is the largest E&C company.
Approaching Investment Grade: At BB+ from both S&P and Fitch, the company is one notch from investment grade. An upgrade would lower borrowing costs and expand the investor base eligible to hold the company's bonds.
Bear Case
Mega-Project Execution Risk: Construction remains one of the world's most challenging industries. Cost overruns, schedule delays, and disputes are endemic. The Panama Canal experience demonstrates that even successful projects can generate protracted litigation.
Political and Regulatory Exposure: The Strait of Messina Bridge situation illustrates how political and regulatory factors can derail even approved projects. Italian political instability adds a layer of uncertainty to domestic projects.
Free Cash Flow Volatility: Free operating cash flow (FOCF) is expected to remain negative over the next 12-24 months due to elevated capital expenditures and the reversal of advance payments.
Customer Concentration in Public Sector: Government and public-sector clients dominate Webuild's revenue. Budget constraints, political changes, and procurement challenges can delay or cancel projects.
Porter's Five Forces Assessment
Threat of New Entrants: LOW. Mega-project construction requires decades of accumulated expertise, relationships, and track record. New entrants cannot credibly bid on billion-euro tunneling or dam projects.
Bargaining Power of Suppliers: MODERATE. Webuild depends on specialized equipment (TBMs, cranes) and materials, but its scale provides leverage. The company operates its own equipment fleet to reduce supplier dependency.
Bargaining Power of Customers: MODERATE TO HIGH. Government clients often hold significant power in procurement, but Webuild's technical expertise on complex projects creates countervailing leverage.
Threat of Substitutes: LOW. Physical infrastructure generally cannot be substituted. A bridge cannot be replaced by an app.
Competitive Rivalry: MODERATE. While competition exists, the market segments where Webuild excels—complex dams, tunnels, high-speed rail—feature fewer qualified competitors than general construction.
Hamilton Helmer's 7 Powers Framework
Scale Economies: Webuild benefits from scale in equipment utilization, overhead absorption, and project management capabilities. The ability to deploy experienced teams across multiple projects creates efficiency advantages.
Network Effects: Limited direct network effects, though the company's global presence creates some matching advantages between project opportunities and available resources.
Counter-Positioning: Webuild's willingness to take on technically complex projects that traditional contractors avoid creates counter-positioning against more conservative competitors.
Switching Costs: Moderate switching costs once a project is underway, as clients are locked into the contractor for multi-year construction periods.
Branding: The Webuild brand carries significant weight for mega-project clients seeking reliable, technically capable partners.
Cornered Resource: Accumulated mega-project expertise and institutional relationships represent a form of cornered resource that competitors cannot easily replicate.
Process Power: Decades of experience in tunneling, dam construction, and high-speed rail have created proprietary processes and know-how that improve execution and reduce risk.
XV. Key Performance Indicators for Ongoing Monitoring
For investors tracking Webuild's performance, three metrics deserve particular attention:
1. Book-to-Bill Ratio
This ratio measures new orders won versus revenue recognized. A book-to-bill consistently above 1.0x indicates the backlog is growing, providing forward visibility and future revenue growth. Webuild has targeted book-to-bill >1.0x and has consistently achieved this.
2. EBITDA Margin Trajectory
Construction is a notoriously thin-margin business. Webuild's ability to expand EBITDA margins from the low-7% range toward the targeted 9-10% range would indicate successful execution of its high-value contract strategy and cost efficiency programs.
3. Low-Risk Market Revenue Percentage
The shift from 59% to 90% of revenue from low-risk markets represents a fundamental de-risking of the business. Monitoring whether this percentage holds—or potentially reverses—provides insight into the company's strategic discipline.
XVI. Material Risks and Considerations
Messina Bridge Regulatory Uncertainty: The Court of Audit's rejection creates genuine uncertainty around this €10+ billion project. While the government can proceed despite the rejection, the political and legal complications could delay or derail the project entirely.
Snowy 2.0 Cost Pressures: The project has already seen one major "reset" and remains challenging. Further cost escalations or schedule delays could impact profitability and reputation.
Political Risk in Italy: Italian political instability has historically affected infrastructure investment. Changes in government could impact domestic project pipelines.
Project Execution: Mega-projects inherently carry execution risk. A major project failure could damage the company's reputation and financial position.
Foreign Exchange Exposure: With significant operations in Australia, the US, and other markets, currency fluctuations affect reported results.
XVII. Conclusion: Building the Future
Standing at a Webuild construction site—whether in the Snowy Mountains of Australia, the Pamir range of Tajikistan, or beneath the streets of Milan—one sees the tangible reality of infrastructure: the massive tunnel boring machines, the towering concrete forms, the armies of workers and engineers executing plans that span decades.
Pietro Salini's vision, articulated in that first hostile proxy fight more than a decade ago, has largely been realized. Italy's fragmented construction sector produced a national champion. That champion has become a global force. And the construction backlog stretching into the 2030s provides unusual visibility for an industry notorious for its volatility.
Yet the construction industry remains unforgiving. Cost overruns, schedule delays, political interference, and technical challenges can transform promising projects into financial disasters. Webuild's track record suggests it manages these risks better than most, but "better than most" still leaves plenty of room for disappointment.
For observers of business strategy, Webuild offers a masterclass in crisis-driven consolidation, geographic de-risking, and capability-led competition. For students of Italian capitalism, it represents something almost unprecedented: an Italian industrial company that has successfully globalized while maintaining its technical and cultural identity.
The Strait of Messina Bridge remains the ultimate test—a project that has defeated generations of Italian governments and contractors, representing both Webuild's greatest opportunity and its greatest risk. Whether it ever spans that treacherous strait may ultimately say as much about Italy's political culture as about Webuild's engineering prowess.
What's certain is that someone will build the world's infrastructure for the next century—the dams that store renewable energy, the tunnels that connect cities, the railways that move people and goods, the bridges that span impossible distances. Webuild has positioned itself to be among those builders.
The company's name captures both its identity and its promise: We Build.
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