Message from the CEO
Dear reader,
From the demand for affordable housing and accessible transport to supporting climate adaptation and the energy transition, I am reminded every day that the construction industry is essential to meeting society’s needs. The way we meet that need, however, is an increasingly pressing question.
Owing to CO2 emissions, waste and other impacts, our industry is a significant contributor to climate change. But we can do better if we choose. I truly believe that profitability and sustainability can coexist in construction: our choice is not between one or the other, but whether to play a positive role or a negative one. At BAM, we have chosen the positive route. We are defining sustainability targets for the impacts we can control, aiming to be more society-friendly and setting a good example for our subcontractors.
By choosing sustainability, we can build schools, hospitals and homes that look beautiful, are practical and which bring people joy for decades to come, all without creating problems for future generations. It is complex and difficult, and there are dilemmas in defining what is and is not sustainable, but we can do it.
Personally, I am proud to work at a company in which our 14,167 people bring our strategy, Building a sustainable tomorrow, to life every day. BAM continuously tries to do better across the value chain by thinking about how we do what we do; for example, by using more sustainable concrete, steel and asphalt, and developing a homebuilding concept that is faster, cleaner, and circular. This requires persistence and patience, but I believe BAM is showing how construction can meet the needs of our society both today and tomorrow – and do so profitably.
Strong financial performance
We can see the results of our approach in BAM’s strong financial performance across our two divisions in 2025: the Netherlands and the United Kingdom and Ireland. Also BAM Belgium performed well. All our businesses performed well, with BAM Bouw en Techniek (Netherlands) and BAM Construct (United Kingdom) the standout businesses in terms of revenue, growth and performance. Overall, BAM reported an adjusted EBITDA margin of 5.7% compared to 5.2% last year. Revenue grew by 9% over the course of the year to €7.0 billion.
Turning to our sustainability performance, we continued to make good progress on our CO2 emission reductions. Meanwhile, our employee engagement scores increased compared to the previous year. We share more information on our Environmental, Social and Governance performance in our sustainability statement.
It is exciting to see BAM firing on all cylinders. Particularly pleasing is that our 2025 results came from normal business and autonomous growth, with no disposals or other factors to consider. During the year, we expanded our land bank for sustainable housing in the Netherlands, and we maintained a strong and diversified order book in the Netherlands along with the United Kingdom and Ireland. Earnings visibility continued to improve as more clients opted for longer-term framework and partnership contracts, and we continued to fill our bidding pipeline with high-quality tenders. All this demonstrates the underlying strength of the company.
Our geographical focus on the United Kingdom and Ireland, the Netherlands and Belgium meant we were not exposed to tariffs or the related challenges of being active in the US or China in 2025. That said, like all players in the construction industry, BAM is not immune to geopolitical risk factors. Political instability slows decision-making and can call previously agreed policies into question. At present, however, the commitment to and need for sustainable solutions remain strong across all our markets.
Good progress on our strategy
2025 was the second year of BAM’s three-year strategy cycle: Focus, Transform and Expand. As planned, we put more focus on Expand. However, Focus will continue to be important to avoid unacceptable risks and finalise legacy projects.
Strategically, we are on track. Under Transform, BAM is moving further into segments that fit our sustainability goals, and these choices now claim a bigger share of our portfolio. The change we began in 2020 has progressed considerably. Five years ago, BAM was active in all segments worldwide; today we are a more targeted company – active in segments that are attractive from a sustainability perspective and which allow us to use our skills and capabilities to the full.
Going forward, we will expand by deepening our presence in our existing markets rather than spreading ourselves more thinly across new ones. We will focus on a limited set of customers and on doing things better. The construction markets in the United Kingdom and Ireland, the Netherlands and Belgium are worth more than €400 billion, and with revenues of around €7 billion, we have room to manoeuvre.
I truly believe that profitability and sustainability can coexist in construction: our choice is not between one or the other, but whether to play a positive role or a negative one. At BAM, we have chosen the positive route.
Creating the conditions for sustainable performance
Of all our successes in 2025, the one I am most proud of is the BAM-wide introduction of the six Life Saving Rules and eight Safety Principles. When I visit our sites, I see that people really embrace our safety culture. While construction brings inherent risks, we should not accept people being injured by their work: every accident or incident is one too many. We have invested time, energy and money into improving the safety of everybody in the company and our subcontractors on site. I want every colleague working for BAM to get home safe and well every day. This is a top-management priority, heavily supported by the Group, and it is encouraging to see how it has been embraced by the divisions. We will continue to make safety a priority across the company in 2026 and beyond.
Wellbeing is another important aspect at BAM. It is essential to have a workplace in which everyone feels supported, respected and valued. Feeling comfortable is about creating a culture in which we look out for one another. Our people should feel free to speak up when something doesn’t feel right and feel empowered to act.
Going forward, we will expand by deepening our presence in our existing markets rather than spreading ourselves more thinly across new ones. We will focus on a limited set of customers and on doing things better.
As a company, we need creativity and innovation to address society’s sustainability challenges. We will therefore always need qualified people as we must consider the entire context around a project. This requires a wider range of perspectives, including different voices from people from diverse backgrounds. It is essential that we nurture a workplace environment in which everyone feels included; first and foremost because it is the right thing to do, but also to help us attract the diverse talents we need to deliver on our sustainability strategy.
Looking ahead
Safety will continue to be the top priority for BAM in 2026 as we strive to reduce workplace accidents and incidents. On the strategy front, we will build on the progress we made in 2025 by turning our attention to the final phase of our current strategy cycle, Expand, as well as developing and preparing for the start of the next three-year strategy cycle. We will also continue to work on attracting, retaining and motivating the talented people we need to fuel our future growth plans.
On the financial front, we are proud to report an adjusted EBITDA margin of 5.7%, which is at the high end of the range of our strategic target between 4% and 6% by the end of 2026. I look to 2026 with confidence, underpinned by the solid level of our order book. For 2026, BAM expects to deliver further growth in revenue and adjusted EBITDA.
Let me finish by thanking everyone throughout the organisation for your hard work. I’m proud to see everyone supporting our sustainability vision, making 2025 a truly positive year for BAM.
Bunnik, the Netherlands, 25 February 2026
Ruud Joosten,
CEO Royal BAM Group nv
