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STRABAG SE: Building Europe's Construction Empire
How a family craft workshop from 1835 Austria became one of Europe's largest construction companies—and how a sanctioned Russian oligarch ended up owning nearly a quarter of it
I. Introduction & Episode Roadmap
Picture Vienna in September 2025. The STRABAG SE share had just recorded a remarkable price increase of 104% in the first half of the year, accompanied by a multiplication of trading volume. The publicly listed technology group for construction services joined Austria's leading index, the ATX, on September 22, 2025, a decision made by the ATX Committee during its regular review.
But behind this triumph lies one of the most improbable corporate sagas in European business history—a tale spanning nearly two centuries, two world wars, communist collapse, oligarch intrigue, and a sudden tragedy that shook Austria's corporate establishment.
STRABAG SE is an Austrian international technology group for the built environment based in Spittal an der Drau, Austria, with its headquarters in Vienna. It is the largest construction company in Austria and one of the largest construction companies in Europe. The company is active in its home markets Austria and Germany and in all countries of Central, Eastern and South-East Europe, in selected markets in Western Europe, on the Arabian Peninsula, as well as in Australia, Canada, Chile, China and India.
The numbers tell part of the story. The STRABAG SE Group generated an output volume of €19,238.80 million in the 2024 financial year. The consolidated Group revenue amounted to €17,422.22 million. Through the hard work and dedication of approximately 86,000 employees, the company generates an annual output volume of around €19 billion.
But statistics cannot capture the human drama at the heart of this enterprise: a family dynasty now in its third generation at the helm, a geopolitical crisis that has frozen 24% of its shares in regulatory limbo, and a young CEO whose sudden death in January 2025 forced his 81-year-old father back into the breach.
This deep-dive will examine how two separate businesses—one Austrian, one German—merged across two centuries into a European construction champion; how the Haselsteiner family transformed regional contractors into a pan-European behemoth; and whether STRABAG's ambitious Strategy 2030 can deliver on its promise of climate-neutral construction in a world of intensifying geopolitical risk. We will trace the company's dark wartime history, its transformational IPO in 2007, the $1.9 billion lawsuit currently grinding through Russian courts, and the innovation agenda that positions STRABAG at the frontier of construction technology.
For long-term investors, the question is straightforward: Can a company with unresolved shareholder conflicts, concentrated family ownership, and exposure to volatile European construction markets continue compounding returns? Let's find out.
II. The Dual Origins: Two Companies, One Destiny (1835–1970s)
The Austrian Roots: ILBAU
Every construction empire begins with a foundation—and STRABAG's rests in the Alpine town of Spittal an der Drau. The story begins in 1835 with the founding of Familienhandwerksbetrieb Anton Lerchbaumer, a family-run craftsmen's business, in the Austrian town of Spittal—the origin of ILBAU.
The business was developed by Anton Lerchbaumer (1879–1954) and his son-in-law, Franz Isola (1901–1968). It evolved to become Baumeister Lerchbaumer-Isola-KG in 1929. This wasn't simply a renaming exercise—it represented a generational handover and a formalization of what had grown from a modest craft workshop into one of Austria's significant private construction firms.
In 1954 Anton Lerchbaumer senior died. Franz Isola became the sole manager of the largest private building company in Austria. In 1968 Franz Isola died and Anton Lerchbaumer junior became manager. The succession pattern established a template that would persist for decades: the business passed through family lines, with each generation building upon its predecessor's work.
In 1972, the company was reorganized as ILBAU-Aktiengesellschaft. The transformation from KG (Kommanditgesellschaft—a limited partnership) to AG (Aktiengesellschaft—a joint-stock company) reflected both growth ambitions and the increasing complexity of large-scale construction projects in post-war Europe.
In 1987, BAU HOLDING AG was founded as the holding company of ILBAU. In 1990, BAU HOLDING AG was listed on the Vienna Stock Exchange. This listing marked a watershed: ILBAU was no longer a family business operating in the shadows—it was now accountable to public shareholders and subject to the discipline of capital markets.
The German Roots: STRABAG
Sixty years later, in 1895, the former agricultural machinery manufacturer Heinrich Reifenrath and 12 other partners joined forces in Niederlahnstein near Koblenz, Germany, to found Straßenwalzenbetrieb vormals H. Reifenrath Gesellschaft mit beschränkter Haftung.
The name tells a fascinating story: "StraĂźenwalzenbetrieb" translates literally as "street-rolling operation." On December 12, 1866, the firm Remy and Reifenrath had been registered in the Herborn commercial register. The company manufactured iron constructions as well as agricultural equipment and machinery. From 1882, Reifenrath operated two steam rollers for road construction, which he rented to neighboring municipalities alongside his agricultural machines.
This transition from agricultural machinery to road construction equipment proved prescient. As Germany industrialized rapidly in the late 19th century, the demand for paved roads surged. Reifenrath's steam rollers—originally a side business—became the foundation of what would evolve into one of Europe's construction giants.
In 1923, "StraĂźenbau-Aktien-Gesellschaft," Niederlahnstein was founded. In 1930, the STRABAG company name was introduced. In 1949, STRABAG AG, Cologne was listed on the Stock Exchange.
The post-war listing in Cologne carried particular significance. After the devastation of World War II, STRABAG found itself positioned to capitalize on West Germany's reconstruction boom. The largest shareholders were the Cologne banking house Sal. Oppenheim and Wilhelm Werhahn, each holding 33%.
The Dark Chapter: World War II
No honest account of STRABAG's history can avoid its wartime record. Strabag was one of the main profiteers of the Nazi building projects during the Second World War and before. It was a main contractor of the Todt organisation and built concentration camps, the Westwall and Norway's Blood Road.
The Organisation Todt (OT) was the Nazi civil and military engineering organization responsible for massive construction projects throughout occupied Europe. Organisation Todt was a civil and military engineering organisation in Nazi Germany from 1933 to 1945, named for its founder, Fritz Todt. The organisation was responsible for a huge range of engineering projects both in Nazi Germany and in occupied territories from France to the Soviet Union during the Second World War. The organisation became notorious for using forced labour. From 1943 until 1945 during the late phase of the Third Reich, OT administered all construction of concentration camps to supply forced labour to industry.
Approximately 1.4 million labourers were in the service of the organization. One per cent were Germans rejected from military service and 1.5% were concentration camp prisoners; the rest were prisoners of war and forced labourers from occupied countries. All were effectively treated as slaves and existed in the complete and arbitrary service of the totalitarian state. Many did not survive the work or the war.
A British Secret Service report from the era captured the moral dimension: "Enough large building firms offered their services to put the entire construction [of the Westwall] on a voluntary basis. Nor is there any basis later for assuming that firms in any large numbers became so reluctant to work for the OT as to make mass conscriptions of such concerns necessary. This willingness is due to the attractive profits obtainable from OT contracts."
STRABAG's current leadership has publicly addressed this history. "For us as the STRABAG Group, participation in the Reconciliation Fund and the EVZ Foundation was and is also an acknowledgement of our own moral and historical responsibility, which we want to continue to bear. We must stand up for a 'never again' with a clear stance," says CEO Stefan Kratochwill.
Between 2001 and 2007, €4.4 billion were paid to 1.66 million former forced laborers and legal successors through the EVZ Foundation, which was established with contributions from approximately 6,500 German enterprises including STRABAG.
For Investors: The wartime history represents both a reputational risk (particularly in markets like the UK, where STRABAG operates on the HS2 railway project) and a signal about corporate governance. Companies that acknowledge historical wrongdoing and participate in reconciliation efforts often demonstrate the institutional maturity that long-term investors value.
III. The Post-War Economic Miracle & International Expansion (1950s–1980s)
The decades following World War II transformed both Germany and Austria from rubble into economic powerhouses. Construction companies that had survived the war found themselves riding an unprecedented building boom—the Wirtschaftswunder (economic miracle) that rebuilt Western Europe.
In 1953, the construction of the Wadi Tharthar dam on the Tigris marks the beginning of major international projects—a challenge for construction and for organisation. Two years later, STRABAG Nigeria Ltd. marks the company's entry into business on a global scale.
These international ventures were not simply about revenue diversification. They represented organizational learning—forcing STRABAG to develop capabilities in logistics, cross-cultural management, and complex project delivery that would prove invaluable decades later.
In 1965, STRABAG Austria was founded in Linz. In 1986, STRABAG Austria was changed into a joint stock company and was listed on the Vienna Stock Exchange.
The Austrian subsidiary's creation established a bridgehead that would eventually prove crucial. When consolidation came in the late 1990s, the existence of separate German and Austrian STRABAG entities—combined with ILBAU's growing ambitions—created the organizational complexity that Hans Peter Haselsteiner would eventually untangle.
Innovative technologies and business models were introduced and became a formative factor in business development. This led to the first use of a hydraulic tunnel boring machine in Austria and the construction of the world's longest road tunnel at the time—the Arlberg Tunnel. During this time, turnkey construction was also established and propelled the industrialisation of construction. The importance of electronic data processing, which was recognised as early as 1961 and has been used successfully ever since, is visionary for the construction industry.
The Arlberg Tunnel achievement deserves emphasis: at 14 kilometers, it remained the world's longest road tunnel when completed in 1978. Such landmark projects established STRABAG's reputation for technical excellence—a reputation that continues to attract major infrastructure contracts today.
For Investors: The post-war expansion phase established STRABAG's core competitive advantages: technical capability in complex projects, international project management expertise, and a footprint across multiple European markets. These capabilities—built over decades—create genuine barriers to entry that newer competitors cannot easily replicate.
IV. Enter Hans Peter Haselsteiner: The Empire Builder (1972–2006)
Every business transformation requires a catalyst. For STRABAG, that catalyst arrived in 1972 in the form of a 28-year-old accountant named Hans Peter Haselsteiner.
The Man Who Built the Modern STRABAG
Hans Peter Haselsteiner was born on February 1, 1944, in Wörgl. After his Matura, Hans Peter Haselsteiner studied business economics at the Vienna University of Economics and Business, from where he graduated in 1970. After working some time as an accountant, he joined his father-in-law's contracting business, Isola & Lerchbaumer (later Ilbau) in 1972.
The entry through marriage might suggest a comfortable nepotism, but Haselsteiner's subsequent actions demonstrate anything but comfort with the status quo. Haselsteiner worked at the accounting and tax consulting firm Perfekta in Vienna until 1974, while simultaneously joining Isola & Lerchbaumer (Ilbau) in 1972. After the death of his father-in-law Anton Lerchbaumer, he took over as chairman of the board of the joint-stock company in 1974.
At 30 years old, Haselsteiner found himself leading one of Austria's largest private construction companies. The next three decades would see him transform this regional player into a European titan.
Through a series of takeovers, he expanded the company, now known as Strabag, into an international concern, which he controls through the holding company FIMAG (Finanz Industrie Management AG), of which he is the majority shareholder. At the beginning of the 70s, he became chairman of Ilbau AG. In 1998, he became chairman of Bau Holding. In 2006 he became chairman of Strabag SE.
Haselsteiner's leadership style combines strategic boldness with political engagement—an unusual combination in corporate Austria. He continued his political and social engagement alongside his management activities. In 1999 he ran unsuccessfully for the Liberal Forum, which he continued to support financially in subsequent years. After its merger with the newly founded party NEOS, he supported this political group. From 2014 to 2020 he belonged—nominated by NEOS—to the ORF Foundation Council. In the 2016 presidential election campaign, he supported candidate Alexander Van der Bellen.
Beyond politics, Haselsteiner became one of Austria's most prominent philanthropists. Haselsteiner is deeply involved in helping homeless people. He promoted the construction of 16 social housing projects in Vienna. His private foundation funds half of the budget of Father Georg Sporschill's social center for elderly and needy people in Moldova (the other half is funded by the Austrian state). In Summer 2008, he gave a substantial donation to save the refugee project of Ute Bock in Vienna.
The STRABAG Kunstforum and the STRABAG Art Collection were founded in 1984, exactly 40 years ago this year. The STRABAG Art Collection, made up of around eight thousand works by five hundred Austrian and international artists, is one of the largest private art collections in Austria.
The Consolidation Play: Creating a European Champion
The 1990s brought consolidation fever to European construction, and Haselsteiner proved to be a master acquirer.
In 1996, STRABAG acquired a majority stake in STUAG. In 1998, BIBAG Bauindustrie-, Beteiligungs- und Verwaltungs-Aktiengesellschaft, as majority owner of BAU HOLDING AG, took over the majority in STRABAG AG, Cologne. BAU HOLDING AG—with the main operative company in the group, ILBAU—and STRABAG AG, Cologne became sister companies.
The 1998 transaction was the key inflection point. By bringing the German STRABAG under Austrian control, Haselsteiner created the platform for pan-European expansion. In 1999, STRABAG Austria completed the takeover of STUAG. In 2000, BAUHOLDING STRABAG Group started operating throughout Europe under the core STRABAG brand. In Austria, ILBAU and STUAG merged into the new STRABAG AG.
The brand unification decision—abandoning historic names like ILBAU and STUAG in favor of the single STRABAG brand—reflected strategic clarity unusual in family-influenced businesses. Many acquirers preserve legacy brands out of sentimentality or local marketing considerations. Haselsteiner recognized that a unified brand would create scale advantages in procurement, reputation-building, and talent acquisition across borders.
For Investors: Haselsteiner's consolidation strategy created a company fundamentally different from its predecessors. The unified STRABAG brand, the pan-European footprint, and the professionalized management structure all represent compounding advantages that would be extraordinarily difficult (and expensive) for competitors to replicate.
V. The Transformational 2000s: M&A Blitz & IPO
Key Inflection Point #1: The Ed. ZĂĽblin Acquisition (2005)
The early 2000s brought STRABAG's most aggressive expansion phase. Subsequent acquisitions included Deutsche Asphalt GmbH in 2002, Walter Bau Group in 2005, a majority stake in Ed. ZĂĽblin in 2005, Adanti SpA, KIRCHNER Holding GmbH, F. Kirchhoff AG and Deutsche Telekom Immobilien und Service GmbH in 2008.
The Züblin acquisition deserves particular attention. Strabag completed the acquisition of German-based Ed Züblin in a deal worth €210.3 million. The Austrian-based construction company—which initially acquired its stake in Züblin in 2005—now holds 100% of its shares. Strabag initially acquired its stake in Ed Züblin in 2005, following the insolvency of the then-owner Walter Bau.
Stuttgart-based Ed. Züblin AG, with approximately 16,000 employees and an annual output of around €4.6 billion, is one of Germany's largest construction companies. ZÜBLIN, which has been successfully realising challenging construction projects in Germany and abroad since 1898, is the STRABAG Group's leading brand for building construction and civil engineering. The range of services covers all construction-related tasks—from complex turnkey construction, civil engineering and tunnelling to construction logistics, structural maintenance, ground engineering and timber and steel construction.
Acquisitions such as that of ZĂśBLIN enabled the expansion of one of the biggest European construction groups, which began operating under the name STRABAG SE as of 2006.
Key Inflection Point #2: The 2007 IPO
On October 19, 2007, STRABAG SE launched its IPO in the Prime Market Segment of the Vienna Stock Exchange (Wiener Börse). The shares were offered at €47 a piece, giving STRABAG SE proceeds of €893 million from the IPO.
The nearly €900 million in proceeds provided capital for further expansion—but the IPO also brought a controversial new partner into the shareholder structure.
Key Inflection Point #3: The Deripaska Investment (2007)
In April 2007, Rasperia Trading Limited, a holding company owned by Russian industrialist Oleg Deripaska, acquired a stake in the share capital of STRABAG SE. In October 2007, STRABAG SE was listed on the Vienna Stock Exchange (Wiener Börse).
Russian billionaire Oleg Deripaska took over 30 percent of the Austrian construction company Strabag SE, and the capital stock of Europe's sixth largest construction company was therefore increased by €1.05 billion. These last-minute developments likely delayed Strabag's initial public offering, originally scheduled for early May, to autumn of that year.
The Deripaska investment reflected strategic ambitions in Russia. Despite the investment story launched with the second IPO positioning Russia as a potential third STRABAG main market (alongside Germany and Austria), the hoped-for dimension of construction contracts at the 2014 Sochi Winter Olympics was cut from €1 billion to €500 million. In 2016, STRABAG achieved less than 1 percent of group-wide construction output in Russia. Financial crisis, Ukraine conflict, Western trade sanctions and the collapse in oil prices had all contributed.
Deripaska has owned a stake in the business since it floated on the Vienna stock exchange in October 2007. Formerly thought to be Russia's richest man, Oleg Deripaska made his fortune during the aftermath of the collapse of the Soviet Union, after which he ended up controlling aluminium giant Rusal. Announcing his sanctioning in 2018, the US Treasury Department stated Deripaska had been "investigated for money laundering, and had been accused of threatening the lives of business rivals, illegally wiretapping a government official, and taking part in extortion and racketeering."
For Investors: The Deripaska investment represented a Faustian bargain—access to Russian capital and market opportunities in exchange for a shareholder whose relationship with the Putin regime would eventually create existential regulatory risk. The lesson: major shareholder composition matters enormously, particularly when geopolitical tensions can transform a passive investor into a corporate liability overnight.
VI. Leadership Transitions & Strategic Evolution (2013–2020)
After four decades building STRABAG into a European champion, Hans Peter Haselsteiner began planning his exit—though "exit" proves too simple a word for what followed.
In June 2012, Haselsteiner announced he would resign his executive position in Strabag in June 2014.
Hans Peter Haselsteiner grew the company into an international group. He then continued to serve the Management Board in an advisory capacity as Authorised Representative until his son Klemens Haselsteiner took office on 1 January 2020.
The succession represented a carefully staged generational transition. Thomas Birtel served as CEO from 2013 to 2020, providing professional management continuity while Klemens Haselsteiner prepared to assume leadership.
Klemens Haselsteiner, born in Klagenfurt in 1980, became CEO of STRABAG SE in 2023. From the time he joined the company in 2011, he helped shape STRABAG's direction in various positions, playing a decisive role in transforming the company into one of Europe's leading construction technology groups. His keen sense for anticipating future trends was a major factor contributing to STRABAG's strategic realignment.
Klemens Haselsteiner had enjoyed what many would describe as a stellar career. After studying Business Administration at the University of Chicago, he joined Strabag SE, where he was involved for over a decade, with roles spanning various countries such as Russia and Germany before making his way to the top.
By the 2010s, STRABAG had established itself as Central and Eastern Europe's dominant construction force, capitalizing on infrastructure demands following EU enlargement. The company's geographic diversification—with revenues balanced across North + West (41%), South + East (41%), and International + Special Divisions (18%)—provided resilience against regional downturns.
For Investors: The structured succession from Hans Peter to professional management to Klemens represented best practice for family business transitions. However, the concentration of control in the Haselsteiner Foundation (30.7% of shares) creates ongoing governance questions around minority shareholder protection and board independence.
VII. The 2022 Crisis: Sanctions, Deripaska & Geopolitical Fallout
Key Inflection Point #4: Russia Invades Ukraine
On February 24, 2022, Russia invaded Ukraine. For STRABAG, the consequences arrived weeks later.
In May 2022, Thomas Bull, a director appointed by the third largest shareholder, Rasperia Trading, which is owned by Russian entrepreneur Oleg Deripaska, was removed from the board to ensure compliance with the EU sanctions against Deripaska.
"From the very beginning, meaning from 1 March 2022, we have taken decisive steps to distance ourselves from the Russian shareholder. All dividend payments have been frozen, Rasperia has been excluded from all General Meetings and the Supervisory Board member delegated by Rasperia has been removed. Last but not least, our recent capital measure has forced Rasperia's shareholdings to below the important threshold of 25%," said then-CEO Klemens Haselsteiner.
The distinction matters legally: Due to the EU Sanctions Regulation, Rasperia's shares in STRABAG SE have been frozen ever since EU sanctions were imposed. STRABAG has always taken the position that Rasperia is itself subject to sanctions under EU sanctions law. In the company's view, the transaction in Russia has not changed this status for Rasperia or the STRABAG SE shares.
The Syndicate Agreement Dissolution
The shareholder structure had been governed by a 2007 syndicate agreement. In 2007, the Austrian core shareholders and Rasperia concluded a syndicate agreement which, among other things, provided for the nomination of Supervisory Board members and the coordination of voting results at the Annual General Meeting.
The sanctions forced dissolution of this arrangement. In September 2023, STRABAG SE began to gradually implement the capital measures that had been unanimously approved at the company's 19th Annual General Meeting with the aim of reducing the shareholding interest in STRABAG held by MKAO "Rasperia Trading Limited"—a company controlled by the sanctioned Russian citizen Oleg Deripaska—from 27.8% to less than 25%.
The Ongoing Legal Battle
MKAO "Rasperia Trading Limited" has taken legal action against STRABAG SE, the Austrian core shareholders and AO Raiffeisenbank before a court in Kaliningrad, Russia. Rasperia claims that, because of the measures taken by STRABAG and the core shareholders in response to the sanctions against it, the shares it holds in STRABAG have become worthless for it. Rasperia accuses STRABAG and the core shareholders, through compliance with EU sanctions, of having acted to the detriment of Rasperia. The damages being sought, amounting to €1.9 billion, are to be collected from AO Raiffeisenbank in Russia, as enforcement in Europe is (naturally) hopeless.
"The court has decided that STRABAG SE and its Austrian core shareholders are liable to pay 2.044 billion euros ($2.12 billion) to Rasperia and that the verdict can be enforced against (RBI Russian unit) AO Raiffeisenbank's assets," RBI said. RBI said its Russian unit would appeal against the verdict "with suspensive effect" and RBI would take legal action in Austria "to mitigate damages by seeking enforcement against Rasperia's assets in Austria."
Earlier this week, Strabag said its claim against Rasperia and RBI had been withdrawn.
The saga continues with additional complexity: Deripaska's company Rasperia had purchased the 24% stake in Strabag in 2007. After Russia's invasion of Ukraine in 2022, the shares were frozen under EU sanctions and Deripaska sold Rasperia to another Russian businessman who was later sanctioned by both the EU and the United States. A Russian court in 2024 ordered RBI, the biggest Western lender still operating in Russia, to pay 2 billion euros in damages to Rasperia and take ownership of the Strabag shares. RBI paid the damages but said that the shares could not be transferred because the Russian court ruling has "no binding effect in Austria" and the shares themselves remain frozen under EU sanctions.
The suit is currently not expected to have any economic impact on STRABAG SE.
For Investors: The Rasperia situation represents a textbook case of geopolitical tail risk materializing. While STRABAG's core operations remain unaffected, the frozen 24% shareholding creates uncertainty around capital allocation (can dividends be paid to a sanctioned shareholder?), corporate governance (who exercises those voting rights?), and potential future transactions. The €1.9 billion Russian court judgment—while unenforceable in Europe—adds legal complexity that could affect merger discussions or major transactions.
VIII. Tragedy & Continuity: The Death of Klemens Haselsteiner (2025)
On a Friday in January 2025, STRABAG's 86,000 employees received devastating news.
It is with deep sorrow that we announce the death of our CEO, Klemens Haselsteiner, who passed away suddenly and unexpectedly on Friday, 17 January 2025. Our thoughts and condolences are with his family and loved ones.
At just 44 years old, Haselsteiner passed away on January 17, 2025, during what was reportedly supposed to be a routine stay at a health resort in Obervellach, Austria. Strabag SE, one of the largest construction companies in Europe, confirmed the news on its website.
Sources close to the matter indicated he died from complications related to an aneurysm. "Medically speaking, we had no chance... every help arrived too late," stated Dr. Rainer Schroth, Haselsteiner's long-time physician. This statement painted a grim picture of the circumstances surrounding his untimely death.
With "Work On Progress," he initiated one of the most sweeping transformation processes in the company's history, laying the groundwork for more sustainability, innovation and resilience at STRABAG. His push for the digitalisation of the construction industry and for ecological transformation has had an impact that extends far beyond the company.
Under his leadership, STRABAG set itself binding climate targets for the first time in company history. Despite his entrepreneurial foresight, Klemens Haselsteiner never lost his down-to-earth attitude. His philosophy was to prove himself every day. And to show that there is a better way to build. Especially important to him was making things happen. It wasn't enough for him to just theorise about change. He sought out an open direct dialogue with his colleagues.
The company moved swiftly to ensure continuity. Strabag says that its Supervisory Board has already begun deliberating on a successor for the position of CEO. Until this position is filled, the remaining members of the Management Board will assume the responsibilities previously held by Klemens Haselsteiner. Klemens Haselsteiner took office on 1 January 2020 and initiated one of the most sweeping transformation processes in the company's history, laying the groundwork for more sustainability, innovation and resilience.
The management board of Strabag, with the approval of the supervisory board, has granted Hans Peter Haselsteiner, PhD general power of attorney. In keeping with late Klemens Haselsteiner's vision, the management board will continue the far-reaching transformation process initiated under the title "Work On Progress."
One month later, the company announced permanent leadership. The Supervisory Board of STRABAG SE on February 19, 2025 appointed Stefan Kratochwill as CEO with immediate effect. Kratochwill (48) previously held the position of central division head and managing director of the Group's construction machinery subsidiary STRABAG BMTI GmbH with responsibility for 3,000 employees internationally.
Kratochwill studied engineering management and mechanical engineering at Vienna's technical university TU Wien. He then joined the STRABAG Group as a trainee in 2003. His first assignments took him to South-East Europe, where he built up the organisational structures of the Group's construction equipment subsidiary in Romania, Bulgaria, Serbia and Montenegro. He later managed the European track construction machinery business until 2017, when he was appointed central division head and managing director of the construction machinery subsidiary STRABAG BMTI GmbH with responsibility for 3,000 employees internationally.
Stefan Kratochwill said, "It is a personal priority and a privilege for me to carry forward Klemens Haselsteiner's vision within STRABAG. Klemens saw STRABAG as his own family, which I can empathise with, as I started as a trainee and grew up in this family myself. My promise not only to our external stakeholders, but especially to our colleagues, is that together we will continue on the path towards a sustainable future."
For Investors: The death of Klemens Haselsteiner at 44 highlighted succession risk that had seemed manageable just months earlier. The board's swift appointment of Kratochwill—an internal candidate with deep operational experience—demonstrates institutional resilience. However, the loss of the family's designated next-generation leader creates long-term questions about the Haselsteiner family's ongoing role. Hans Peter Haselsteiner, now 81, has returned as general representative, but this cannot be a permanent solution.
IX. The Modern Era: Strategy 2030 & Financial Performance
Record-Breaking Results
The 2024 financial results demonstrated STRABAG's fundamental strength despite leadership upheaval and shareholder complications.
The STRABAG SE Group generated an output volume of €19,238.80 million in the 2024 financial year, representing a slight increase of 1% or €100 million. After exceeding the €25 billion mark for the first time in the first half of the year, the order backlog was increased further to €25,362.47 million by the end of 2024, an increase of €1.9 billion or 8%.
The earnings before interest and taxes (EBIT) exceeded the €1.0 billion mark for the first time in 2024, amounting to €1,061.89 million. This resulted in a significant increase in the EBIT margin from 5.0% to 6.1%.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 16% to €1,644.18 million. In a year-on-year comparison, this corresponds to a noticeable increase in the EBITDA margin from 8.0% to 9.4%.
STRABAG SE demonstrates resilience and achieves best result to date—Output volume slightly above previous year at €19.2 billion—New record order backlog of €25.4 billion (+8% vs. 2023)—EBIT margin above expectations at 6.1% (2023: 5.0%)—Dividend proposal of €2.50 per share (2023: €2.20).
The average number of employees in the 2024 financial year stood at 78,174 FTEs, a slight increase of 1% compared to the previous year. In line with the output growth, and due to acquisitions in the building solutions business to expand the depth of value creation in M&E and energy management, the largest increases were recorded in Germany and the Benelux region.
Strategy 2030 & Outlook
The Management Board expects a significant increase in output volume to approximately €21 billion in the 2025 financial year. This forecast is based on the high order backlog and on the expected contributions from recent acquisitions. An increase in output volume is forecast for all operating segments in 2025.
While several positive earnings effects coincided in 2024, the EBIT margin is expected to normalise again in 2025. In light of the first tangible effects of the Group Strategy, the Management Board is raising the EBIT margin target for 2025 to ≥4.5%.
With the sustainability strategy adopted in 2021, STRABAG has set itself the goal of becoming climate neutral along the entire value chain by 2040.
Scope 1 & Scope 2: Compared to our 2023 base year, we are aiming to reduce our Scope 1 and Scope 2 emissions by 42% by 2030 and to achieve climate neutrality by 2040 in line with the 1.5°C scenario. Scope 3: Starting from 2023 as the base year, targets for the upstream and downstream Scope 3 emissions are being developed in accordance with the WB2C scenario by 2030.
Klemens Haselsteiner commented on the strategy: "We plan to grow profitably and to achieve real added value for people and planet. We want to be a pioneer in climate-friendly construction, actively shape the energy transition and sustainably reinforce our technology leadership. We are convinced that we will be able to build on our previous achievements and have set ourselves the ambitious goal of attaining an EBIT margin of 6% by 2030."
Innovation & Digitalization
STRABAG is already working on over 250 innovation and digitalization projects. Through the continuous development and use of new technologies and sustainable construction methods, innovation projects make a decisive contribution to reducing CO2 emissions, using resources more efficiently and minimizing waste.
The number of BIM-capable workstations has been growing continually and in 2023 reached 2,643 (2022: 2,435). That corresponds to a year-on-year increase of 9%.
Digitalization is another pillar of STRABAG's strategy, with the company actively participating in the Construct-X project—a €30 million EU-funded initiative to develop open-source digital standards for the construction sector.
ATX Inclusion & Market Recognition
The publicly listed technology group for construction services STRABAG SE will be represented in the Austrian leading index ATX as of 22 September 2025. The ATX Committee made this decision during its regular review the previous day. Decisive factors for inclusion included the significant increase in share liquidity, measured by average daily stock exchange turnover, and the increased free float.
"Our return to the ATX is a strong signal to the capital market and confirmation of our company's strategic orientation," says Stefan Kratochwill, CEO of STRABAG SE. "The impressive performance of our share price shows that we are delivering convincing results with our diversification and clear focus on long-term growth and future markets."
For Investors: The financial performance demonstrates that STRABAG's operational engine continues functioning effectively despite governance disruptions. The €25+ billion order backlog provides revenue visibility extending multiple years forward. The 6.1% EBIT margin achieved in 2024 exceeded the company's own 6% target for 2030—a remarkable outperformance that management attributes to one-time effects but that may also reflect structural margin improvement.
X. Porter's Five Forces Analysis
1. Threat of New Entrants: LOW
Construction at STRABAG's scale requires massive capital intensity: specialized equipment fleets, working capital to fund projects until milestone payments arrive, bonding capacity to guarantee performance, and decades of relationship-building with public procurement offices across multiple jurisdictions.
With more than 70,000 employees, STRABAG SE is considered one of the largest construction companies in Europe. According to Forbes, it is considered one of the Largest Public Companies in the World.
New entrants cannot simply buy their way into this position. The technical expertise required for tunneling, complex civil engineering, and mega-project management takes decades to develop. Regulatory complexity across European markets creates additional barriers—each country has different permitting requirements, labor laws, and procurement processes that incumbents have mastered through painful experience.
2. Bargaining Power of Suppliers: MODERATE
Construction materials—cement, steel, asphalt, aggregates—are largely commoditized. However, STRABAG has pursued vertical integration to reduce supplier dependency. Subsequent acquisitions included Deutsche Asphalt GmbH in 2002.
The more significant supplier pressure comes from labor markets. Construction faces chronic skilled labor shortages across Europe, giving specialized workers meaningful bargaining power over wages and conditions. This constraint represents a structural industry challenge rather than a STRABAG-specific issue.
3. Bargaining Power of Buyers: MODERATE-HIGH
Public sector clients—governments, municipalities, infrastructure agencies—dominate STRABAG's customer base. These sophisticated buyers conduct formal tender processes, creating price transparency and competitive pressure.
However, STRABAG's technical capabilities in complex projects (tunneling, major infrastructure) create differentiation that reduces buyer power on specialized work. When only two or three firms globally can execute a particular project type, the buyer cannot simply take the lowest bid.
4. Threat of Substitutes: LOW
Physical construction has no substitute. Buildings, roads, tunnels, and bridges require physical construction regardless of technological change. While construction methods evolve—modular construction, prefabrication, 3D printing—these represent complementary approaches rather than substitutes for STRABAG's core business.
Our activities span all areas of the construction industry and cover the entire construction value chain. We create added value for our clients by taking an end-to-end view of construction over the entire life cycle—from planning and design to construction, operation and facility management to redevelopment or demolition.
5. Competitive Rivalry: HIGH
STRABAG's top competitors include Skanska, Kiewit and Fluor. The ramification of groups developing out of small but performing countries can be detected from the following two competitors: Skanska in Sweden and Strabag in Austria.
The European construction market remains highly fragmented with national champions competing intensely for major contracts. Public tender processes create price competition that can compress margins during economic downturns.
Historical evidence confirms competitive intensity: In December 2013 the Supreme Court of the Slovak Republic confirmed that one of the companies of the STRABAG Group participated in bid rigging cartel of construction companies (together with companies of Skanska group and Mota-Engil group) in 2004. Illegal conduct was associated with the tender for the execution of works for the construction of the D1 highway from Mengusovce to Jánovce in Eastern Slovakia.
XI. Hamilton's Seven Powers Analysis
1. Scale Economies: STRONG
Through the hard work and dedication of approximately 86,000 employees, we generate an annual output volume of around €19 billion.
Scale delivers concrete advantages in construction: purchasing power for materials and equipment, ability to spread fixed costs (engineering capabilities, R&D, corporate overhead) across massive project volumes, and capacity to maintain specialized expertise (tunnel boring, complex civil engineering) that smaller competitors cannot justify.
2. Network Effects: WEAK
Construction fundamentally lacks network effects—one customer's project does not become more valuable because other customers use STRABAG. The business remains fundamentally project-based rather than platform-based.
3. Counter-Positioning: MODERATE
With the sustainability strategy adopted in 2021, STRABAG has set itself the goal of becoming climate neutral along the entire value chain by 2040.
STRABAG's aggressive sustainability positioning may create counter-positioning advantages as environmental regulations tighten across Europe. Traditional competitors heavily invested in carbon-intensive construction methods may struggle to match STRABAG's green capabilities without cannibalizing existing operations.
4. Switching Costs: MODERATE
Long-term relationships with public sector clients create soft switching costs—procurement officers develop familiarity with contractors' capabilities, quality standards, and communication protocols. While formal tender processes prevent lock-in, incumbent relationships often provide advantages in understanding client preferences and demonstrating relevant track record.
5. Branding: MODERATE
The unified STRABAG brand carries significant weight in European construction—representing reliability, technical capability, and financial strength. For major infrastructure projects, brand reputation influences client confidence in contractor selection.
6. Cornered Resource: WEAK
Construction lacks the cornered resources (patents, exclusive licenses, prime locations) that create durable advantages in other industries. Technical expertise and experienced personnel represent valuable but ultimately replicable resources.
7. Process Power: MODERATE
The SID central division helped realise over 200 development projects covering the entire value chain throughout the STRABAG Group in 2023. The following sections present an excerpt of individual innovative projects.
STRABAG's institutional capabilities in project management, BIM implementation, and operational efficiency represent process power that competitors cannot easily replicate. However, construction processes remain fundamentally labor-intensive, limiting the degree of sustainable process advantage.
XII. Key KPIs for Ongoing Monitoring
For investors tracking STRABAG's performance, three metrics warrant particular attention:
1. Order Backlog (€25.4 billion as of December 2024)
Order backlog provides the clearest forward indicator of revenue trajectory. Construction projects typically convert to revenue over 2-4 years, making the backlog an excellent leading indicator. Monitor both absolute level and growth rate—backlog growth exceeding output volume growth signals improving market positioning.
2. EBIT Margin (6.1% in 2024, target ≥4.5% for 2025)
EBIT margin captures operational efficiency better than gross margin (which varies with project mix) or net margin (affected by financing structure). The company achieved 6.1% in 2024 versus its long-term 6% target—outperformance that management cautions included one-time effects. Sustainable margins above 5% would indicate structural improvement versus historical ~4% levels.
3. Free Float Liquidity
With approximately 24% of shares frozen under sanctions, effective free float remains constrained. The ATX inclusion decision reflected improving liquidity—tracking this metric signals whether the stock can attract broader institutional ownership.
XIII. Bull and Bear Cases
Bull Case: The Infrastructure Super-Cycle Champion
The bull case rests on STRABAG's positioning at the intersection of multiple secular trends:
EU Infrastructure Spending Surge: Europe's commitment to infrastructure modernization—from energy transition (grid expansion, renewable installations) to transportation networks (rail, highways)—creates sustained demand for exactly the capabilities STRABAG offers.
German Construction Recovery: The positive development was driven by the 2024 annual results, which significantly exceeded expectations, along with improving conditions in the construction industry, and the market outlook in Germany. As market leader with a comprehensive presence, STRABAG is ideally positioned to play a key role in shaping the infrastructure modernisation offensive in Germany.
Sustainability First-Mover Advantage: As regulations tighten around carbon emissions in construction, STRABAG's early investment in climate-neutral capabilities may create competitive moats that laggards cannot easily cross.
Valuation Discount Resolution: The frozen Rasperia shares have likely depressed valuation multiples. Any resolution—whether through regulatory change, negotiated exit, or time-based normalization—could trigger re-rating.
Bear Case: Geopolitical Gridlock and Margin Compression
Rasperia Overhang: The €1.9 billion Russian court judgment, while currently unenforceable, creates headline risk and potential complications for major transactions. The frozen shares create ongoing governance ambiguity.
Margin Normalization: Management explicitly warned that 2024's 6.1% EBIT margin benefited from one-time effects. Return to historical ~4-5% margins would disappoint investors extrapolating recent performance.
Cyclical Vulnerability: Construction remains highly cyclical. Interest rate increases could crush residential demand; fiscal austerity could reduce public infrastructure spending; economic recession would hit both segments simultaneously.
Family Control Risks: With 30.7% of shares held by the Haselsteiner Foundation, minority shareholders depend on family alignment with their interests. The death of Klemens removes the designated next-generation leader, creating succession uncertainty.
Competitive Pressure: The company has 11,782 active competitors, including 189 funded and 1,220 that have exited. The fragmented European construction market provides limited pricing power.
XIV. Conclusion: Work On Progress
STRABAG's story defies simple narrative. A company whose wartime predecessor profited from Nazi forced labor now positions itself at the frontier of sustainable construction. A family business spanning nearly two centuries faces its most acute succession crisis just as market conditions turn favorable. A straightforward construction company finds itself entangled in geopolitical conflict between the world's major powers.
For long-term investors, the essential question is whether STRABAG's operational strengths—scale, geographic diversification, technical capabilities, sustainability leadership—can compound returns despite governance complexity and cyclical industry dynamics.
The evidence suggests qualified optimism. We have once again proven our economic strength in 2024—in a year with tailwind from the infrastructure sector and headwind in building construction. In numbers, this means nothing less than the best result in our company history.
The €25+ billion order backlog provides multi-year revenue visibility. The Strategy 2030 framework establishes clear priorities for sustainable growth. The management team—now led by Stefan Kratochwill with Hans Peter Haselsteiner's advisory support—combines deep operational experience with strategic continuity.
Yet material risks remain. The Rasperia situation could generate headlines at any moment. Construction margins remain vulnerable to economic cycles. And the loss of Klemens Haselsteiner at 44 reminds us that succession planning, however careful, cannot eliminate key-person risk.
Klemens Haselsteiner didn't just want to change things. He actually did change things.
The question for investors is whether STRABAG's remaining leadership can continue that legacy—building not just Europe's physical infrastructure, but a company that delivers sustainable returns across generations. The work, as the company's motto suggests, remains in progress.
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