Strabag said its UK workload is expected to accelerate sharply despite revenue across its British operations falling from £700m to £600m in 2025 following delays to major projects including HS2 and Woodsmith Mine.
UK managing director Andrew Dixon said momentum is now building for 2027 and beyond, driven by major opportunities in infrastructure, tunnelling and the energy sector.
The contractor is targeting UK revenue of £1bn by 2028, supported by a secured and preferred bidder pipeline worth more than £4bn. Dixon said project tenders and awards slowed during 2025 due to client caution linked to high interest rates and economic uncertainty, but confidence is now improving as demand grows around ageing infrastructure, energy transition projects and government-backed investment.
A major driver of future growth will be the £3bn Haweswater Aqueduct Resilience Programme for United Utilities. The scheme will replace six ageing tunnel sections along the 100km aqueduct supplying water from Cumbria to Lancashire and Greater Manchester, with major construction expected to begin later this year.
Activity on HS2 has also intensified following the launch of two tunnel boring machines for the final tunnel drive to Euston through Strabag’s joint venture with Skanska and Costain.
Meanwhile, Strabag’s contract to excavate a 37km conveyor tunnel at the £4.2bn Woodsmith potash mine in Yorkshire is expected to return to full construction in 2027 after a prolonged slowdown. The renewed momentum follows a recent investment agreement involving Mitsubishi Corporation and Anglo American.
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