Greek construction group AVAX Group has set a target of 150 million euros in operating profit (EBITDA) over the next three years, as it seeks to gradually increase the contribution of non-construction activities.
The strategy, presented at the company’s annual general meeting, focuses on diversification into concessions, real estate and energy, including renewables and storage. Management said it aims for more than 40% of operating profit to come from these segments.
The company also said it does not currently require new financing to implement its investment plan, noting that existing cash reserves and borrowing capacity are sufficient. According to the presentation, net debt has fallen to around 200 million euros, while the net debt-to-EBITDA ratio has dropped below two times for the first time, to 1.7 times.
AVAX said its backlog remains at 2.8 billion euros, forming a strong pipeline of projects for the coming years.
Chief executive Konstantinos Mitzalis expressed confidence that the construction market will continue to generate new projects, despite a slowdown in public tenders from the infrastructure ministry.
“Construction activity never dies. There will always be new projects to be delivered,” he said. “What matters is having the strength and flexibility to respond to changing market conditions.”
He added that AVAX’s broad presence across the construction sector helps it offset declines in individual segments, while the company is also exploring opportunities abroad, particularly in energy.
On rising construction costs, he reiterated the industry’s call for the reinstatement of price adjustment mechanisms, noting that newer projects already include provisions for inflation, while older ones remain manageable.
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