3.1 Financial performance

Royal BAM Group delivered a strong performance in 2025. We reported an adjusted EBITDA of €400 million, representing an increase of 20% compared with 2024. This outcome reflects 9% revenue growth and a further enhancement of our adjusted EBITDA margin. Both divisions and our operation in Belgium contributed to the improved profitability.

Our well‑diversified order book remained strong, supported by our disciplined approach to contract selection and risk management, and by collaborating with preferred clients who share our sustainability ambitions. Earnings visibility continues to improve as an increasing number of clients, particularly in the energy and civil sectors, are opting for longer‑term framework and partnership agreements. Across our markets, we maintain a solid and high‑quality bidding pipeline.

Shareholder remuneration

BAM maintained a strong financial position, supported by effective cost control and disciplined working‑capital management, and both our cash position and solvency improved. The company proposes to pay a dividend of €0.30 per share over 2025, representing a 20% increase compared with last year. In addition, we intend to return a further €40 million to shareholders through a share buyback. This indicates that we expect to return circa 55% of 2025 net income to shareholders.

Income Statement

Outlook

We continue to see robust demand across our markets, underscoring the resilience of our portfolio despite ongoing uncertainty related to nitrogen regulations in the Netherlands and broader geopolitical developments. At the same time, we see strong market opportunities driven by the accelerating need for energy transition, investment in infrastructure and defence, and the growing demand for sustainable and affordable housing, all areas in which we have demonstrated market‑leading capabilities. Delivering complex infrastructure projects and new homes is essential to enabling thriving communities, but this requires stability, transparent planning processes and long‑term commitment that extends beyond short‑term political agendas. For 2026, BAM expects to deliver further growth in revenue and adjusted EBITDA.

Division Netherlands

Revenue increased by 8% compared to 2024, driven by substantially higher production levels in non-residential construction as several large projects made strong progress. The other business segments also delivered solid growth.

Adjusted EBITDA rose to €250 million, compared to €161 million in 2024, reflecting an adjusted EBITDA margin of 7.2%. The improved performance was supported by a high level of activity in non‑residential construction. The Dutch residential business also continued to perform well. Home sales accelerated, including transactions with investors, and increased by 27% to 2,354, compared to 1,854 in 2024. The Dutch civil engineering operations continued to deliver strong results, supported by sustained demand for projects related to the energy transition.

The order book increased by 5%, to €5.6 billion, reflecting strong performance across all business segments. During 2025, BAM expanded its land and building rights portfolio and reached an agreement to acquire residential property developer and construction company Gebroeders Blokland in 2026. These strategic steps increased the development pipeline to approximately 30,000 positions.

The residential market remains strong, supported by stable consumer confidence. The non‑residential market showed a cautiously positive outlook, particularly in education and offices. In civil engineering, we see attractive growth opportunities driven by the energy transition and developments in the transport sector. Across our markets, the need for essential investment in energy transition, infrastructure, defence and sustainable and affordable housing remains compelling.

Division United Kingdom & Ireland

Revenue increased by 10% compared with full-year 2024, reflecting strong activity across our markets. In the United Kingdom, Construction UK started several new projects, driving a solid increase in volumes. In Ireland, growth was supported by continued progress in both civil engineering and non-residential projects.

Adjusted EBITDA was €160 million compared to €114 million in 2024, reflecting an adjusted EBITDA margin of 4.7%. Construction UK returned to profitability, supported by strong execution and a disciplined, selective approach to tendering. Performance in Civil Engineering in the United Kingdom and Ireland remained robust against a strong comparative period in 2024. In 2025, the Silvertown tunnel in London was opened and Co-op Live in Manchester was completed. In December, level six of the National Children’s Hospital (NCH) in Dublin was handed over to Children’s Health Ireland (CHI) and additional areas will follow in the coming months.

The order book remained at high level of €6.9 billion compared to €7.2 billion last year. The decline is explained by the negative effect of British pound exchange rate movements.

The construction market in the United Kingdom is expected to strengthen, supported by the UK Government’s continued focus on energy security. The Government’s 10‑year infrastructure plan is ambitious, and defence investment is also set to increase. The recently approved UK Planning and Infrastructure Bill has the potential to accelerate approvals for major projects. In London, commercial planning activity is rising, with growing emphasis on retrofit developments. In Ireland, the €275 billion National Development Plan is expected to provide a significant boost to the construction sector. Across both markets, BAM remains disciplined and focused on securing projects that offer an attractive and balanced risk‑return profile.

Germany, Belgium and BAM International

The Belgian activities contributed well in 2025. BAM Belgium, in partnership, secured two towers of the Banks project in Brussels. The contract covers the redevelopment of an existing office building into 101 high‑quality residential apartments and 130 hotel rooms, reinforcing BAM’s strong position in the Belgian urban‑renewal market. In Germany, a claim dispute was resolved.

Cash flow

Operating performance resulted in a strong cash flow from operating activities of €354 million. Cash flow from working capital was €35 million negative and included the net investment of €55 million in residential development positions. Trade working capital efficiency slightly improved to -11.9% (2024 year-end at -11.7%). At year-end 2025, cash and cash equivalents increased by €120 million to €883 million (2024: €763 million).

Cash flow from investing activities was €4 million positive, mainly reflecting the proceeds of €108 million from the divestment of BAM’s remaining 50% stake in Invesis, offset by the acquisition of WL Winet and regular capital expenditure of €83 million (2024: €85 million).

Cash flow from financing activities amounted to negative €198 million, with the main elements being the €66 million cash dividend payment and €50 million of share buybacks. The remaining outflow relates primarily to lease payments of €106 million, partly offset by a €24 million increase in borrowings.

Exchange rate movements, predominantly relating to the British pound, adversely affected year-end cash and cash equivalents by €31 million.

Financial position

Shareholders’ equity increased by €62 million to €958 million. The movement mainly reflects the 2025 net result of €211 million, partly offset by negative exchange rate differences (€24 million), the cash dividend payment (€66 million), the share buyback programme (€50 million) and the effect of post‑employment benefit obligations (€11 million negative). BAM’s solvency remained solid and improved to 23.4% (2024: 23.0%).