Three-quarters of construction companies are expecting revenue growth this year and next year, according to an analysis

Prague – Three-quarters of construction companies expect an increase in revenue this year and next year. On average, revenues could increase by 2.2 percent this year and by another 2.3 percent in 2026. The reason will be the increase in the prices of construction work, employee wages, as well as the growth in demand for new construction. This is based on a quarterly analysis by CEEC Research, which is available to ČTK. A total of 128 small, medium, and large construction companies participated in the analysis.

Construction firms estimate different revenue growth depending on their sector. Construction companies focused on engineering construction, i.e., the development of transportation or energy infrastructure, expect revenue growth of 1 percent this year and 2.4 percent next year. Builders involved in residential and non-residential construction predict a higher growth for this year, namely 2.7 percent, and a 2.3 percent increase for 2026. Companies in the engineering construction sector are more skeptical, as their projects often face complex permitting processes, which leads to delays. Significant investments in highway and railway infrastructure are expected by companies only from 2026.

"The economic development in the Czech Republic and Germany will be key for ground construction. Economic growth could support both corporate investments and household demand for new housing. For engineering construction, it will be crucial whether public investments remain at the current level," said Tomáš Hlaváček, the Commercial Director of Colas CZ.

After fluctuations between 2022 and 2023, associated with inflation, rising material prices, and declining demand, the sector is gradually stabilizing according to the analysis. Investors continue to implement their projects, and the state and cities are increasing investments in transportation infrastructure and public buildings, which allows companies to plan with a longer outlook. On average, construction companies have contracts secured for ten months ahead. For 45 percent of them, this is the same volume as a year ago, while another 31 percent report a year-on-year increase.

"In the near future, two fundamental factors will influence the development of Czech construction – the availability of financial resources and the efficiency of their use. The ability of public administration to not only allocate funds but also to actually use them without unnecessary delays in permitting processes will be crucial," stated Ondřej Budík, the General Director of HBH Projekt.

According to data from the Czech Statistical Office (ČSÚ), construction output in the Czech Republic decreased by 2.4 percent year-on-year last year, the same as in 2023. Thus, construction has declined for the second consecutive year. Last year, this was mainly attributed to ground construction. According to the latest available data, production in ground construction increased by 0.7 percent year-on-year in February, while engineering construction grew by 1.3 percent. The construction of residential and non-residential buildings in January increased by 8.7 percent year-on-year, and the building of roads or telecommunication and energy networks rose by 6.9 percent.