In general, market conditions in BAM's home markets are expected to further improve following the anticipated growth of GDP and construction output volume. 

The market in the Netherlands for the demand for new build homes and making homes energy neutral continued to grow, but the supply of new build homes is still constrained by availability of permitted locations. Non-residential construction and property are improving, including the transition to more energy efficient buildings. Both businesses experience increased supply chain pressure. Civil engineering remains competitive for regional and larger multidisciplinary projects. In the UK, the non-residential construction market is slowing down, particularly in the London area. Civil engineering remains relatively stable. Brexit is affecting labor supply at subcontractors. German construction and civil engineering markets are stable and competitive. Promising outlook for public infrastructure, including PPP. The Belgium civil engineering market shows signs of recovery. Construction and property markets are stable. Ireland continued positive momentum, especially in construction. International oil and gas markets stable at low level and showing signs of new investment decisions; BAM's activities gaining traction in selected onshore markets. The market for Public Private Partnerships remains promising in most BAM's home markets.

BAM started the financial year 2018 with an order book of €11.6 billion (2017: €10.2 billion), of which €5.7 billion will be carried out this year. The increased order book was driven by taking in some multiyear projects. Impact on revenue growth is therefore limited.


BAM expects the 2015 Paris Agreement on climate change will have an effect on national and European regulations to reduce energy demand resulting in demand for more energy efficient and energy positive solutions. Linear consumption patterns (‘take-make-dispose’) of products are coming up against constraints on the availability of resources. The construction sector needs to develop new opportunities and realise circular economy ambitions faster, which requires rethinking, redesign and innovative construction methods. BAM will continue its efforts to implement its sustainability strategy to have a net positive impact in the long term.

Human resources

Due to economic growth, especially in the field of technology, BAM will face a tight labour market. The Group’s challenge to find technical skilled people will increase. This will be addressed in BAM’s employer branding strategy. By offering learning programmes and other opportunities to grow the Group keeps developing the employees. Also BAM will focus on an attractive company culture to keep talent. To understand the people’s needs and interest, regular engagement surveys will be held and actions will be defined.


BAM expects no material changes in the financing structure of the company in 2018.


BAM expects investments in strategic and project specific equipment in normal course of business.

Outlook 2018

Most of our markets are developing in a positive direction which is reflected in our order book. At the same time, we are feeling rising pressure on costs and availability in some parts of our supply chain. For the full year 2018 we expect an adjusted result before tax margin of around 2 per cent.

Executive Board
Bunnik, the Netherlands, 20 February 2018