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1. Company Snapshot

1.a. Company Description

Koninklijke BAM Groep nv, together with its subsidiaries, provides products and services in the construction and property, civil engineering, and public private partnerships (PPP) sectors worldwide.The company designs, develops, constructs, and maintains public, residential and non-residential, infrastructure, turn-key construction, and civil architecture and industrial construction projects; and provides project development, design, and engineering services, as well as rail infrastructure, facilities management, volumetric modular housing, and property development services.It also undertakes various civil and marine engineering projects; and operates PPP in road, rail, education, health care, judicial, and general projects.


Koninklijke BAM Groep nv was founded in 1869 and is headquartered in Bunnik, the Netherlands.

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1.b. Last Insights on BAMNB

Koninklijke BAM Groep nv's recent performance is driven by strong fundamentals, including a 33% increase in order backlog and a 25% dividend hike. The company's robust financial performance and ambitious net-zero targets validated by the Science-Based Targets Initiative (SBTi) are key drivers. Additionally, the company's decision to hike dividends suggests a positive outlook on its financial health. The institutional ownership of 40% and individual investors controlling 60% of the company, may also indicate a strong foundation for long-term growth. The company's innovative strategies and focus on sustainability are also contributing to its recent performance.

1.c. Company Highlights

2. Royal BAM Group's Strong 2025 Performance and Cautious Optimism for 2026

Royal BAM Group delivered a robust financial performance in 2025, with revenue increasing by 9% to over EUR 7 billion and adjusted EBITDA rising by 20% to EUR 400 million. The adjusted EBITDA margin improved from 5.2% to 5.7%, driven by disciplined execution and a lower risk profile. The net result was EUR 211 million, a significant increase from the previous year. The company's Dutch division performed well, with revenue growing by 8% and adjusted EBITDA rising sharply to EUR 250 million, representing a 7.2% margin.

Publication Date: Mar -02

📋 Highlights
  • Revenue & Profit Growth: Revenue surged 9% to EUR 7 billion; adjusted EBITDA rose 20% to EUR 400 million, with margin improvement from 5.2% to 5.7%.
  • Dutch Division Performance: Revenue grew 8%; adjusted EBITDA reached EUR 250 million (7.2% margin), driven by 27% increase in home sales.
  • UK/Ireland Success: Revenue climbed 10%; adjusted EBITDA soared 40% to EUR 160 million (4.7% margin), with construction profitability restored.
  • Strong Financial Position: EUR 0.9 billion cash and EUR 501 million net cash; order book at EUR 13 billion, supporting future growth.
  • 2026 Outlook: Targets higher revenue/EBITDA; proposes EUR 0.30/share dividend (20% increase) and EUR 40 million share buyback to align with capital allocation strategy.

Segment Performance

The U.K. and Ireland also delivered an excellent performance, with revenue increasing by 10% and adjusted EBITDA rising by 40% to EUR 160 million, representing a 4.7% margin. The construction activities in the U.K. returned to profitability, and the civil engineering activities in the U.K. and Ireland continued to perform well. As R. Joosten stated, "We are investing heavily in property, which should lead to higher margins."

Order Book and Cash Position

The company's order book remained at a high level of EUR 13 billion, with a focus on quality and selective tendering in key markets. The strong cash position of EUR 0.9 billion and a net cash position of EUR 501 million provide a solid foundation for future growth. The return on average capital employed increased, demonstrating strong financial effectiveness.

Outlook and Valuation

For 2026, the company expects to deliver further growth in revenue and adjusted EBITDA, with a disciplined approach to contract and risk management. Analysts estimate next year's revenue growth at 3.9%. With a P/E Ratio of 11.25 and an EV/EBITDA of 5.72, the market is pricing in a moderate growth expectation. The Dividend Yield of 2.71% and Free Cash Flow Yield of 11.73% indicate a relatively attractive return profile.

Capital Allocation and Sustainability

The company proposes a dividend of EUR 0.30 per share, representing a 20% increase from the previous year, and will supplement this with a EUR 40 million share buyback program. This demonstrates the company's commitment to sustainable value creation and disciplined capital allocation. Roughly 15% of BAM's revenue is related to sustainability projects, which is a growing area for the company.

3. NewsRoom

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Koninklijke Bam Groep NV (STU:BGPA) Full Year 2025 Earnings Call Highlights: Strong Growth and ...

Feb -19

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Top European Dividend Stocks For November 2025

Nov -27

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European Dividend Stocks To Consider Now

Oct -29

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Koninklijke BAM Groep nv's (AMS:BAMNB) market cap dropped €82m last week; individual investors who hold 60% were hit as were institutions

Sep -29

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European Dividend Stocks To Enhance Your Portfolio

Sep -09

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Koninklijke BAM Groep First Half 2025 Earnings: EPS: €0.39 (vs €0.20 in 1H 2024)

Jul -26

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Interested In Koninklijke BAM Groep's (AMS:BAMNB) Upcoming €0.25 Dividend? You Have Two Days Left

May -09

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Is It Time To Consider Buying Koninklijke BAM Groep nv (AMS:BAMNB)?

Apr -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.01%)

6. Segments

Division United Kingdom and Ireland

Expected Growth: 1.2%

The 1.2% growth in the United Kingdom and Ireland division of Koninklijke BAM Groep nv is driven by increasing infrastructure investments, a rebound in commercial construction, and a growing demand for sustainable building solutions. Additionally, the division's focus on operational efficiency and cost savings initiatives has contributed to its growth.

Division Netherlands

Expected Growth: 0.8%

The 0.8% growth in the Netherlands division of Koninklijke BAM Groep nv is driven by increasing infrastructure investments, a growing demand for sustainable construction, and a strong order book in the civil engineering segment. Additionally, the division's focus on innovation and digitalization has improved operational efficiency, contributing to the modest growth.

Belgium, Germany and International

Expected Growth: 1.1%

Koninklijke BAM Groep nv's 1.1% growth is driven by Belgium's stable infrastructure investments, Germany's renewable energy initiatives, and International's urbanization projects. In Belgium, the company benefits from the government's focus on road and rail infrastructure development. In Germany, BAM capitalizes on the energy transition trend, while internationally, it leverages its expertise in urban development and infrastructure projects.

Other including Eliminations

Expected Growth: 0.9%

Koninklijke BAM Groep nv's 0.9% growth in 'Other including Eliminations' is driven by increased focus on sustainable construction, successful project execution, and strategic divestments. Additionally, the company's efforts to reduce costs and improve operational efficiency have contributed to this growth.

7. Detailed Products

Civil Engineering

Design, construction, and maintenance of infrastructure projects such as roads, bridges, and tunnels

Building and Property

Design, construction, and management of commercial and residential buildings

Infrastructure Projects

Design, construction, and maintenance of large-scale infrastructure projects such as airports, seaports, and railways

Public-Private Partnerships (PPPs)

Collaborative projects between public and private sectors to deliver infrastructure projects

International Project Development

Development and delivery of infrastructure projects outside of the Netherlands

Energy and Utilities

Design, construction, and maintenance of energy and utility infrastructure projects

Railway Construction

Design, construction, and maintenance of railway infrastructure projects

8. Koninklijke BAM Groep nv's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Koninklijke BAM Groep nv is medium due to the presence of alternative construction companies and the ability of clients to choose from a range of service providers.

Bargaining Power Of Customers

The bargaining power of customers for Koninklijke BAM Groep nv is low due to the company's strong reputation and the complexity of the construction projects it undertakes.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Koninklijke BAM Groep nv is medium due to the company's dependence on a range of suppliers for materials and equipment.

Threat Of New Entrants

The threat of new entrants for Koninklijke BAM Groep nv is low due to the high barriers to entry in the construction industry, including the need for significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for Koninklijke BAM Groep nv is high due to the competitive nature of the construction industry, with many established players competing for a share of the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.78%
Debt Cost 5.48%
Equity Weight 87.22%
Equity Cost 12.05%
WACC 11.21%
Leverage 14.65%

11. Quality Control: Koninklijke BAM Groep nv passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Veidekke

A-Score: 7.1/10

Value: 5.3

Growth: 5.1

Quality: 7.0

Yield: 8.8

Momentum: 7.0

Volatility: 9.3

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Bilfinger

A-Score: 6.2/10

Value: 4.3

Growth: 7.1

Quality: 5.2

Yield: 6.9

Momentum: 10.0

Volatility: 3.7

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BAM

A-Score: 5.8/10

Value: 6.1

Growth: 4.8

Quality: 4.8

Yield: 5.6

Momentum: 10.0

Volatility: 3.7

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Mirbud

A-Score: 5.5/10

Value: 7.2

Growth: 4.7

Quality: 4.8

Yield: 3.8

Momentum: 8.0

Volatility: 4.7

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Renew

A-Score: 5.1/10

Value: 5.9

Growth: 5.9

Quality: 6.6

Yield: 4.4

Momentum: 2.0

Volatility: 6.0

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Assystem

A-Score: 4.7/10

Value: 3.3

Growth: 3.7

Quality: 3.2

Yield: 6.2

Momentum: 7.0

Volatility: 4.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.89$

Current Price

8.89$

Potential

-0.00%

Expected Cash-Flows