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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 Delivers Steady Financial Performance with Strategic Progress

Royal BAM Group reported a solid financial performance for its 2024 full-year results, with revenues growing 3% to €6.4 billion, driven by strong execution across its core activities. The company achieved an adjusted EBITDA of €333 million, representing a 5.2% margin, supported by contributions from the divestment of Invesis. Net income stood at €82 million, translating to earnings per share of €0.31, reflecting disciplined cost management and operational efficiency. As CFO Frans den Houter noted, "The divestment of Invesis has not only strengthened our financial position but also allowed us to focus on our core competencies."

Publication Date: Mar -02

📋 Highlights
  • Strong Financial Performance:: Royal BAM Group reported an adjusted EBITDA of €333 million with a 5.2% margin, driven by strong performance across nearly all activities and contributions from the divestment of Invesis. Revenues grew 3% to €6.4 billion, and net income was €82 million, with earnings per share of €0.31.
  • Robust Order Backlog Growth:: The company's order backlog increased 33% to €13 billion, supported by strategic project wins in sustainable solutions, demonstrating strong demand and confidence in its strategic direction.
  • Strategic Shifts and Sustainability Progress:: BAM exited non-residential construction in Denmark, focused on core activities, and advanced sustainable solutions like affordable wooden Flow homes. The company received a CDP Climate A rating for the sixth consecutive time and validated its net-zero ambition by 2050.
  • Dividend Increase and Share Buyback:: BAM proposed a dividend of €0.25 per share, a 25% increase, and announced a €50 million share buyback program, supported by proceeds from the Invesis divestment.
  • Divisional Performance and Challenges:: While the Netherlands division performed strongly with an 11% increase in residential sales, the UK and Ireland division faced challenges, particularly with Construction UK posting a €48 million loss due to delays in the Co-op Live project in Manchester.

Operational Highlights and Strategic Initiatives

The company’s order backlog surged 33% to €13 billion, underscoring its ability to secure strategic project wins, particularly in sustainable solutions. BAM made significant progress in de-risking its portfolio, including the exit from non-residential construction in Denmark and addressing challenges in the UK, notably the Co-op Live project in Manchester, which is nearing completion. The strategic focus on core activities and sustainable solutions, such as the affordable wooden Flow homes, positions BAM well for long-term growth.

Sustainability and Emissions Reduction

BAM’s commitment to sustainability was evident in its sixth consecutive CDP Climate A rating and the validation of its net-zero ambition by 2050. The company reported a 17% reduction in Scope 1 and 2 emissions and a 37% reduction in Scope 3 emissions compared to 2019 levels, demonstrating progress toward its environmental goals.

Divisional Performance and Market Trends

The Netherlands division delivered a strong performance, with residential sales increasing by 11% to 1,854 homes and civil engineering growth of 14%. The UK and Ireland division reported adjusted EBITDA of €114 million, though Construction UK incurred a €48 million loss due to delays in the Co-op Live project. Civil Engineering UK performed strongly, and Ireland saw significant improvement. Market trends indicate a robust Dutch residential market, cautious optimism in non-residential construction, and growth in UK and Irish construction activity.

Financial Position and Valuation

Overall, Royal BAM Group’s 2024 results reflect a company in transformation, with a clear strategic focus on sustainable solutions, disciplined risk management, and a strong order book to support future growth.

3. NewsRoom

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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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BAM starts first phase of Schiphol Plaza bus station overhaul

Mar -24

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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: 7.5/10

Value: 5.7

Growth: 5.1

Quality: 7.0

Yield: 9.4

Momentum: 8.0

Volatility: 9.7

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Bilfinger

A-Score: 6.4/10

Value: 5.3

Growth: 7.1

Quality: 5.2

Yield: 6.9

Momentum: 10.0

Volatility: 4.0

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BAM

A-Score: 5.8/10

Value: 6.7

Growth: 4.8

Quality: 4.7

Yield: 5.6

Momentum: 9.5

Volatility: 3.3

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Mirbud

A-Score: 5.3/10

Value: 7.4

Growth: 4.7

Quality: 4.7

Yield: 3.8

Momentum: 7.0

Volatility: 4.3

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Renew

A-Score: 4.9/10

Value: 5.3

Growth: 5.9

Quality: 6.4

Yield: 4.4

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Assystem

A-Score: 3.8/10

Value: 3.2

Growth: 3.7

Quality: 3.2

Yield: 6.2

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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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

8.84$

Current Price

8.84$

Potential

-0.00%

Expected Cash-Flows