European Powers of Construction 2016

30 June 2017

Deloitte's annual European Powers of Construction study (EPoC) is concerned with the performance of construction companies and examines the strategies and performance of the most representative listed European construction groups in terms of revenue, market capitalisation, internationalisation, diversification, indebtedness and other financial ratios.

Aggregate sales and market capitalisation decline

In 2016, the aggregate sales and market capitalisation of the major European construction companies fell by 2% and 5% respectively. It should be noted, however, that the market value of the 20 most significant European contractors in 2016 remained slightly higher than that achieved prior to the financial crisis which began in 2007.

The annual study carried out by Deloitte is taking key figures such as sales, profitability and debt situation into account to produces the annual “European Powers of Construction Report” – a ranking of the most successful European construction companies.

Europe's construction industry continues to struggle in post-crisis recover  

The latest edition analyses the performance of the leading European construction groups in 2016. During this year, total sales and market capitalisation of the largest European construction companies decreased 2% and 5%, respectively. In all, only eight groups among the 20 largest European builders were able to increase overall revenues.

Profit opportunities left for dead

The internationalisation and diversification of the leading European construction companies continues to grow. In the year 2016, their international sales and non-construction revenue represented 52% and 29% respectively of total revenues. While the level of internationalisation increased by 8%, overall diversification decreased by 3%, although profitability in construction related operations is twelve percentage points higher than in traditional construction activity.

Deloitte: European Powers of Construction 2016