Bam’s parent company has enjoyed a profit boost in the first quarter (Q1) of the year, helped by a “significant improvement” in the performance of its UK construction arm.
In a trading update this morning (8 May), Netherlands-based Royal Bam said Bam Construct was one of the “main drivers” for a Q1 uptick in its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
“The performance of Construct UK improved significantly, while civil engineering [in the] UK and Ireland continued to perform well,” the firm said in a trading update published on Thursday (8 May).
“We had a solid start of the year,” Royal Bam Group chief executive Ruud Joosten said.
“[The] main driver for the higher adjusted EBITDA was the performance of Construction UK and the performance of the construction and property activities in the Netherlands.”
Its major UK wins in the quarter included a £100m project to overhaul a skyscraper in London for British Land, a £45.4m job to build ferry infrastructure in Shetland, and work to revamp Cardinal Newman Catholic School in Coventry.
Construction News approached Bam Construct for specific turnover and pre-tax figures for the first quarter of 2025.
Its parent firm’s latest announcement followed a tough 2024 for Bam Construct, with the latter reporting a loss of €48.3m (£40.3m) EBITDA.
It blamed “project delays and supply chain issues” for the loss, as well as struggles on its job at the Co-op Live Arena in Manchester. That project is now at least £85m over budget.
Royal Bam also reported an increased order book of €13.3bn (£11.3bn), up from €13bn at the end of 2024, “with [a] continued focus on quality above volume”.
Looking ahead, Joosten said he expects demand in Royal Bam’s markets to “remain robust”, despite uncertainty around interest rates and the geopolitical landscape.
“We see attractive market opportunities driven by demand for decarbonisation, infrastructure, and sustainable and affordable housing, areas where we have demonstrated market-leading capabilities,” he added.
Later this month, Royal Bam will also initiate a €50m share-buyback programme, as announced in February.