Overview
Royal BAM Group reported solid financial performance in the second half of 2025, posting revenue of EUR3.66 billion and adjusted EBITDA of EUR223.9 million, both figures that outpaced consensus estimates. In response to the results, the Dutch construction firm announced a EUR40 million share buyback program and a higher full-year dividend.
Profitability and margins
The company's adjusted EBITDA of EUR223.9 million in H2 2025 was 11% above consensus, delivering an adjusted EBITDA margin of 6.1%. While adjusted EBITDA rose 8% year-on-year, the margin contracted slightly from 6.3% in H2 2024 to 6.1% in H2 2025.
Net income and earnings per share
Net profit for the second half climbed sharply to EUR109.5 million, a 301% increase versus the same period a year earlier. Earnings per share reached EUR0.40 in H2 2025, up from EUR0.11 in H2 2024.
Cash flow and balance sheet
Cash flow from operations improved for the full year, totaling EUR345 million compared with EUR257 million in 2024. The group ended 2025 with a net cash position of EUR502 million, up from EUR440 million at the end of the prior year.
Dividends and capital returns
Based on the year’s results, BAM will distribute a full-year dividend of EUR0.30 per share, a 20% increase on the previous year’s EUR0.25. In addition to the increased dividend, the company unveiled a EUR40 million share buyback program following its H2 performance.
Segment performance
Geographically, the Netherlands division showed strong momentum, with civil engineering revenue up 11.5% year-on-year to EUR623.4 million. The UK and Ireland construction and property segment delivered a pronounced increase in revenue, rising 64.8% to EUR600.6 million.
Outlook
Looking to 2026, BAM said it expects further growth in both revenue and adjusted EBITDA. Management did not, however, provide specific numerical targets for the coming year.
Key points
- BAM posted H2 revenue of EUR3.66 billion and adjusted EBITDA of EUR223.9 million, both above consensus.
- The company announced a EUR40 million share buyback and raised the full-year dividend to EUR0.30 per share.
- Improved cash flow and a higher net cash position support balance sheet flexibility; strong performance was notable in the Netherlands and the UK and Ireland segments.
Risks and uncertainties
- Adjusted EBITDA margin contracted slightly from 6.3% in H2 2024 to 6.1% in H2 2025, indicating margin pressure despite higher absolute EBITDA.
- Management signaled expectations for revenue and adjusted EBITDA growth in 2026 but did not supply specific targets, leaving the scale and timing of that growth undefined.
- Performance was uneven across divisions, with notable concentration of growth in the Netherlands and the UK and Ireland, which could affect overall results if regional trends shift.
Bottom line
BAM’s H2 2025 results show improved top-line revenue, rising adjusted EBITDA and a material jump in net profit, supported by stronger operating cash flow and a healthier net cash balance. The company has returned capital to shareholders via an increased dividend and a EUR40 million buyback, while flagging further growth for 2026 without concrete numerical guidance.