Ballast Nedam annual results 2021: Further increase in turnover and profit

Ballast Nedam continues to report positive results. The annual results of 2021 show a turnover exceeding € 1 billion, a strong order book of € 1.7 billion and a net result of € 42.0 million. In light of the challenging market conditions, the construction and urban development company is satisfied with the results achieved.

"Our 2021 financial results reflect a healthy business performance we are proud of," says Cenk Düzyol, Chairman of the Board of Management of Ballast Nedam. "Our annual results are positive, above Business Plan expectations, and they confirm that we are on the right track with our strategy. Nevertheless, we have to remain humble, given the current global developments which are unpredictable at this moment."
Key figures 2021
  • Revenue: € 1,041.5 million (2020: € 947.6 million)
  • EBITDA: € 42.9 million (2020: € 40.6 million)
  • Net result: € 42.0 million (2020: € 31.1 million)
  • Order book: € 1.7 billion (2020: € 1.4 billion)
  • Solvency: 24.3% (2020: 24.1%).
  • Cash and cash equivalents: € 252.8 million (2020: € 220.0 million)

The annual report can be read and downloaded online

Health as the foundation of our integrated business model

Looking back on a second year living with the COVID-19 pandemic, Ballast Nedam identified health as the foundation of our business in 2021. This concerns health on an individual, business and environmental level. Having health as a key essential throughout the business led to a healthy business performance, according to Cenk Düzyol. "It is essential that we create the circumstances in which we have a vital organisation in which our people are healthy. We want to expand further but only in a responsible way. This means that we are selective when opportunities arise and that we take large steps in our sustainability goals. It is all about creating an environment in which well-being is attainable for everyone.”

Developments in 2021

The operating result was achieved at a time in which macroeconomic and international influences were having a major impact on the market. World-wide, the pandemic created uncertain times in which production sometimes came to a standstill and price increases were high. This still causes large tension on costs and timely deliveries throughout the sector.

With the motto 'Challenge to Improve' in its DNA, Ballast Nedam implemented several improvements in 2021. For example, risk management was given a high priority. The company manages risks better by being transparent, understanding its markets and staying close to clients. This enables the company to improve the level of comfort and convenience in collaboration with their partners, which ultimately enhances the end-user experience as well.

In the area of safety, many initiatives have been taken to increase safety awareness and building a stronger safety culture. Amongst others, all operational business units reached step 3 of the safety culture ladder. Also, Ballast Nedam developed a renewed safety campaign and executed safety sprint sessions to increase safety awareness.

Cenk Düzyol: "At Ballast Nedam we do not lean back. Our entrepreneurial mentality always takes us a step further in our ambition for further growth. In addition, we work with real professionals. Our multidisciplinary expertise has been built up through years of experience. That professional knowledge is in our people and is further strengthened by technical innovations."

CO2 neutral by 2030

There were many investments in sustainability. Ballast Nedam has committed itself to the goal of reducing its CO2 footprint. Ballast Nedam has set a high target of becoming itself fully CO2 neutral by 2030.

In 2021 it reduced its CO2 footprint by 35% compared to 2019. Investments have been made in electrical equipment, electrical car fleet, solar panels, green electricity and new asphalt mixtures with a high recycling value. Ballast Nedam is not only looking at minimising its own footprint, but also at improving sustainability in the entire supply chain. From CO2-neutral buildings to CO2-neutral production to CO2-neutral demolition.

In addition, Ballast Nedam focuses on wood construction and modular solutions that contribute to circularity and the reduction and/or sequestration of CO2. Circularity is applied in both construction methods and materials. There is also a focus on biodiversity in the projects.
Order book

Ballast Nedam is reporting an order book of € 1.7 billion for 2021: a further increase compared to 2020 (€ 1.4 billion). Several new projects were added to the portfolio,including Horizons Amsterdam, construction of the quays of Princess Amaliahaven, Windplanblauw in the IJsselmeer, and Maasvlakte 2 Wind Farm project. With the latter two projects, Ballast Nedam is back in the wind energy market, focusing on nearshore wind foundations. Ballast Nedam has the ambition to apply its experience and expertise of nearshore wind foundations to several projects in the Netherlands and abroad. On Sint Maarten, Ballast Nedam International Projects started the complete renovation of the airport terminal.

On 29 November 2021, Schiphol terminated the contract with the joint venture Ballast Nedam-TAV (BN-TAV) for the construction of the A-Pier. The joint venture BN-TAV is of the opinion that the termination was unrightful. The construction site was handed over to Schiphol in a safe and controlled manner. BN-TAV regrets this outcome, not in the least for all of the suppliers, subcontractors and the end users of the A-Pier. After the termination of the contract, Schiphol and BN-TAV continued their discussions in an attempt to reach an amicable agreement on all claims and disputes.

Outlook 2022

Ballast Nedam believes that continued stable growth is possible in 2022 and is confident in its internal strengths and capabilities. Still the company is dependent on external interrelated influences including the uncertain effects of the current geopolitical events in Eastern Europe and the development of the pandemic.

One of the Dutch new government’s targets is to structurally invest in infrastructure and housing development. Also, legislation at a national and international level influences choices that Ballast Nedam makes for the future, for example on CO2 reduction. Ballast Nedam acknowledges the need to be continuously flexible and resilient. A healthy base is therefore essential in order to be able to manage changing circumstances.

Ballast Nedam sees growth potential in its international network and its ability to carry out projects abroad, for example in Africa, the Caribbean, Asia and Europe. The company is also still looking at acquisitions, as it did recently with the acquisition of Willems Bouwbedrijf B.V. in 2021 and the takeover of road construction company Mouwrik Waardenburg on 21 March 2022. Growth potential could also involve investments in real estate development. Changes in the market in terms of procurement conditions and challenges to attract young and ambitious people into the market, can have an impact on business developments.

If Ballast Nedam can continue to fill its order book and retain its qualified staff, it can still continue to increase its turnover and profit. With a mindset to continue to challenge themselves, Ballast Nedam is following its route to a healthy and sustainable future.

The annual report can be read and downloaded online