Commentary by Artur Popko, President of Budimex SA, on the results of the Budimex Group for the first quarter of 2026

• The Budimex Group’s order book at the end of March 2026 reached a historic value of PLN 18.8 billion, constituting a solid foundation for the company’s further development and securing the work front for the current year, the following year and part of 2028. Additionally, the value of contracts awaiting signature exceeded PLN 2.5 billion. The Budimex Group generated an operating profit of PLN 104 million, while recording an improvement in profitability from 6.8% to 7.0%.
• The profitability of the Group’s gross profit was maintained at a similar level to the corresponding period of the previous year and reached 7.8%.
• Sales revenues of the Budimex Group amounted to PLN 1,497 million. The year-on-year change in revenues is a temporary situation resulting from extremely difficult weather conditions in January and February 2026.
• In Q1 2026, the Budimex Group’s net profit[1] reached PLN 86 million, and the difference in year-on-year results is related to lower net interest income, which is a consequence of the reduction of the NBP interest rate from 5.75% at the end of March 2025 to 3.75% at the end of March 2026.
• The Budimex Group has consistently pursued its dividend policy, and the high net cash position exceeding PLN 2.5 billion allowed it to recommend a dividend payment of PLN 828 million, which is PLN 32.42 gross per share.

The first quarter of 2026 brought an improvement in the Group’s operating profitability compared to the first quarter of 2025 by 0.2 p.p. The geographically diversified order book reached a historic value of PLN 18.8 billion, ensuring optimal utilization of production capacity and a stable business outlook for the coming years. The Group maintained a stable net cash position of more than PLN 2.5 billion, which strengthens its potential for strategic investments and further development in new areas of activity.

The Budimex Group generated an operating profit of PLN 104 million, while recording an improvement in profitability from 6.8% to 7.0% despite a decrease in sales revenues. The gross profit of the Budimex Group amounted to PLN 117 million, with a profitability of 7.8%, similar to that recorded in the corresponding period of the previous year.

*attributable to the shareholders of the Parent Entity

Construction and assembly production in the first quarter of 2026 expressed
at current prices decreased by 3.2% year-on-year from PLN 27.1 billion to PLN 26.2 billion. In the buildings segment, sold production decreased by 6.7%, while in the infrastructure segment an increase of 1.2% was recorded.

Sales of the construction segment of the Budimex Group in the first quarter of 2026 amounted to PLN 1,256 million. Operating profitability in the construction segment amounted to 6.5%, remaining at a solid level, with a change of 1 percentage point compared to the corresponding period of the previous year.

A decrease in sales revenues in the first quarter of 2026 in the construction segment, compared to the same period last year, was recorded mainly in the building and road construction segments. The reduction was a consequence of several factors. The key impact on the level of implementation in all construction divisions was the weather conditions in the first two months of 2026, in particular the longer cold winter compared to the same period of the previous year. At the same time, on several new contracts in the road area, we were finalizing design work and waiting to receive building permits.

Analysing weather conditions and their impact on the level of sales revenues, the Budimex Group consistently uses a broad business structure and a diversified business model. In the period under review, the services segment played a particularly important role, recording double-digit growth, strengthening the Group’s resilience to market and seasonal volatility. Budimex SA’s foreign subsidiaries also made a positive contribution to the results, with revenues increasing in the Latvian and Slovak markets. Such a broad view of business development allows the Group to effectively diversify risks and stabilize results in a volatile economic environment.

The profitability of the gross profit of the construction segment in the period under review was 7.7%, compared to 8.9% in the first quarter of 2025. The level of profitability was mainly influenced by lower interest income, related to the change in the interest rate environment and the reduction of the NBP reference rate from 5.75% at the end of March 2025 to 3.75% at the end of March 2026.

In the first quarter of 2026, we acquired contracts worth PLN 3,594 million. Intensive work on the acquisition of new projects has resulted in the value of projects awaiting signing, as well as those where the offer of Budimex or the Group companies has been rated the highest, currently over PLN 2.5 billion. In the perspective of the coming quarters, this gives the opportunity to take a responsible approach to bidding in the upcoming tenders.

The Budimex Group ended the first quarter of 2026 with a net cash position of more than PLN 2.5 billion, maintaining it at a level similar to the level recorded at the end of 2025. The high level of net cash enables the Budimex Group to consistently invest in new areas of activity, develop competences and build CAPEX potential, which will support long-term growth and diversification of revenue sources. A stable and strong financial position is an important foundation for the Group’s further development, increasing its flexibility in making investment decisions and strengthening its ability to finance strategic projects.

In compliance with the assumptions of the adopted dividend policy, the Management Board of Budimex SA recommended to the General Meeting of Shareholders to pay a dividend from the profit generated for 2025 in the amount of PLN 828 million, i.e. PLN 32.42 per share. The dividend would be paid in June 2026.

Double-digit revenue growth in the services segment

The revenues of the FBSerwis Group, which is a key asset within the services segment (the results of the services segment also include the activities of companies from the RES area, Budimex Mobility and Budimex Parking Wrocław), amounted to PLN 234 million compared to PLN 220 million in the corresponding period of the previous year. FBSerwis Group achieved PLN 20 million in operating profit with high profitability of 8.5%.

In the Environmental Services Division, FBSerwis continued to invest in its assets – in Q1, the modernization of the mechanical waste treatment line in Kryniczno (Środa Śląska commune) began. In the field of infrastructure maintenance services, the company acquired new significant contracts – including an agreement with GDDKiA in Łódź for year-round maintenance of national roads No. 42, 43, 45, 74j, the Wieluń area, as well as contracts for the reconstruction of municipal lighting in Jelenia Góra and the replacement of street lighting in the Łęczna Commune.

The RES area remains one of the directions of the Group’s development, which consistently focuses on the expansion and qualitative strengthening of the project portfolio. In Q1 2026, activities in this area were aimed both at further development of own projects and at preparing the basis for the development of new projects. In particular, work related to securing land, obtaining administrative decisions and developing projects at the early stages continued, which is aimed at building an investment pipeline for the coming years. At the same time, the Group is analysing the possibilities of increasing energy efficiency and integrating various RES technologies, including in particular hybrid and storage solutions, responding to current market conditions. In 2026, the Group’s strategic goal is to achieve a situation in which 100% of the energy consumed for the Group companies’ own needs comes from renewable energy sources. The implementation of this goal is in line with the Group’s long-term strategy of decarbonisation, reducing exposure to energy price volatility and supporting the energy transition, while maintaining investment discipline and focusing on project profitability.

Mostostal Kraków with a good result after the first quarter of 2026 and growing production potential

The Mostostal Kraków Group closes the first quarter of 2026 with a good result and in line with the assumptions. Sales at the level of PLN 171 million, EBIT of 3.4% and contracting of PLN 259 million. It is worth noting that after the first quarter, orders worth over PLN 450 million remain in the so-called waiting room. This safe level allows the entire Mostostal Kraków Group to take a selective approach to submitted offers.

In the following quarters, we continue to focus on foreign markets, and the directions we cover are primarily Germany, Sweden and Lithuania. The contracts signed by the end of March account for as much as 82% of orders on the German market, which shows that the strategic direction of diversification in this market chosen by Mostostal Kraków is crucial for our business.

At the same time, we are investing in our steel construction plants, increasing our production capacity. In March 2026, we purchased additional production space for Konstalex in Radomsko, which gives us an additional 200 tons of prefabricated steel structure per month at this plant, and increases the Group’s potential to 20 thousand tons per year.

Market outlook

The results of the first quarter confirm that the market environment remains demanding, but the scale of the announced procedures of the largest public contracting authorities gives grounds for cautious optimism – we expect higher tender activity later in the year. This will create good conditions for the recovery of order books in the sector, although at the same time it will increase the risk of investment accumulation, increased material costs, pressure on human resources and greater price competition. In such conditions, not only the number of tenders announced will be crucial, but also the pace of their resolution, the efficiency of signing contracts and the predictability of investment schedules.

The Group’s secure position is ensured by the current order book and the significant value of contracts awaiting signature. In the coming quarters, our priority will be responsible portfolio execution, rebuilding the volume of contracts and systematic development of the business while maintaining a stable operating margin and a safe financial position. The scale of the announced infrastructure, energy and defence investments creates significant growth potential, but at the same time requires selectivity, cost discipline and responsible management of contract risk.

We consistently pursue development directions that allow us to reduce dependence on individual market segments and strengthen the resilience of our business model. Diversification includes further strengthening of the position in road and rail infrastructure, development of tunnel competences, energy and industrial projects, investments related to security and defence, as well as expansion into foreign markets. Areas supporting the country’s infrastructure and energy transition, including energy transmission, renewable energy sources, data centres and preparation for participation in investments related to nuclear energy, are also of increasing importance.

Social engagement and human resources

In the first quarter of 2026, we continued our social and educational activities carried out close to local communities, schools and investments, on which we work on a daily basis. Projects supporting the development of future construction industry personnel are of particular importance to us. We have launched a record-breaking edition of the Budimex Academy Internship Programme, under which we have prepared over 300 paid places for students and dozens of offers for technical students in 75 locations across the country. For the first time, the internship will also include a foreign location – Tallinn in Estonia.

We also developed cooperation with schools. In the first quarter, we opened further Budimex Zones – in Poznań and Wałcz. These are spaces created with learning, rest and integration of students in mind. We also support the development of new specializations, an example of which is the cooperation with the Technical School of Inland Navigation in Wrocław in the field of water construction techniques. Currently, we cooperate with 54 schools throughout Poland and 27 universities, and over 3 thousand pupils and students have already gained their first professional experience thanks to our programs. We treat competence building broadly – not only as working with pupils and students, which is why we are developing the Alumni BX program, addressed to former employees and associates of our company. Since the beginning of the program, 30 people have already returned to work with us.

Awards

The beginning of the year also brought important confirmations of Budimex’s position on the construction and capital market. In the Deloitte report “Polish construction companies 2025”, the Budimex Group was identified as the industry leader in terms of revenues, sales result, net result and market value. The company has also been highly rated by capital market experts in the “Listed Company of the Year 2025” ranking of “Puls Biznesu”, including in the investor relations category. This is an important confirmation for us that the scale of operations, financial stability and transparent communication with the market are noticed not only by customers and business partners, but also by investors and analysts.

[1] Attributable to shareholders of the parent company