The construction sector in Europe creates more than €20 trillion in infrastructure and structures each year. The expenditure adds approximately €50 billion to the GDP and dedicates a huge sum of cash to the economy.
Unlike some sectors where big firms control sales, many companies in the construction industry deal with home improvement projects. However, some construction and home improvement firms stand out more because of their growth and size.
These firms can be the largest globally, though they developed to their current size through skilled employees, hard work, and great services in construction and design. Now they improve their brand awareness through excellent feats of construction. Some of these companies include:
With revenue nearing €44.5 billion, Vinci, a French-based company, is one of the top construction firms in Europe. It has a portfolio of approximately 30,000 projects every year, ranging from transport infrastructure, mining, and renewable to water infrastructure, environment, and oil & gas.
Vinci features stocks, which investors closely watch as a barometer of the business cycle and economic direction. Vinci is not just a pure airport stock. It is also more of building business and infrastructure holding.
If you are looking to secure wealth for your retirement, Vinci SA is a lucrative investment option. Currently, the Vinci SA quote is around €94.1. According to stock exchange analysts, a long-term increase is projected to reach 102 in the next five years. With a five-year investment, the profit is anticipated to go up to +7.6%. This means that your €100 investment will be around €107.6 in 2026.
However, wise investors can determine changing trends and expect recoveries in the industry, producing impressive returns in the cyclical business.
Specialized ETFs (exchange-traded funds) provide diversified exposure to the construction sector. The range of construction ETFs is very wide in that the right pick majorly depends on your preferences for securing wealth within the space.
- Besix Group
Besix contracting focuses on construction, marine, and infrastructure projects. In France and Benelux, the Group’s regional partners, such as Lux TP, Besix Infra, Wust, Vanhoutte, and Jacques Delens, ensures a local approach and strong presence.
The synergies existing between the Group’s businesses also allow the company to create value for customers beyond just construction. Where necessary, Besix Group depends on its PPP experience to play an active role in home improvement and maintenance projects.
In addition, contracting is still the company’s core business, and activities in real estate and concessions & assets have taken flight. This wide-ranging professionalism allows the company to handle all aspects of projects, including:
Eiffage is among France’s leading civil engineering and construction groups, posting almost FFr 33 billion in total sales. Eiffage member companies, including SCR-Beugnet, Norelex, Forclum, Quillery, Gerland, and Eiffel, specialize in public construction & private sector and engineering projects, such as electrical installation and building constructions.
Many investors are always on the lookout for the stock that the market has ignored. However, during unprecedented times when the cost of stock becomes erratic, quality stocks can be cheaper.
So is Eiffage SA one of these stocks?
The good news is that Eiffage stock scores against important technical and financial measures. This means it is a big-cap share with enough exposure to two important drivers of investment returns, including ‘relatively cheap valuation’ and ‘high quality.’
Plus, the rule of thumb for reasonable Earnings Yield is 5%, and the yield for Eiffage stock is now 9.8%.
Located in Viena, Austria, Strabag Company has a total revenue of approximately €15.3 billion and more than 70,000 employees. The company deals with projects ranging from tunnel construction and home improvement to civil engineering and transportation infrastructure.
Strabag appears to be underestimated by 25%, based on the discounted cash flow valuation. Currently, the stock is priced at around €36 in the market compared to its intrinsic value of approximately €28. However, given that the company’s share is volatile, this can mean the price will sink lower, allowing you to secure wealth in the future.
- Habau Group
This international company deals with pipeline construction, building construction, and construction of tunnels/prefabricated units. The company has grown from a local construction firm in Perg to an International full-service provider.
Through the partnership, the Habau Group always fosters values, which are usually geared towards responsible interaction and sustainable management with the environment and people. Furthermore, strategic acquisitions and organic growth have also helped the company to attain continuous success.
Most home improvement projects need a reliable construction firm, responsible contractor, effective communication to the involved parties, and proper management of trades/vendors. With a vibrant home improvement and construction sector, Europe has some of the biggest companies in the world.
From Italy, the UK, France, Spain, and Sweden to Austria, Netherlands, Belgium, Portugal, and Finland, most companies in Europe provide construction services in different sub-sectors, including engineering, housing, energy, and infrastructure.