Annual Press Release Rhomberg Group: Strategic Direction Creates Stability

Bregenz, September 20, 2024 – The Rhomberg Group once again reported positive results in its two divisions, construction and rail technology, in the past fiscal year. Despite the challenging construction environment, this was achieved thanks to forward-looking strategic positioning: Years ago, the company leadership set the course for value creation along the entire lifecycle of buildings and infrastructure, and since then, targeted developments have been made. "This means that even in the current difficult market situation, we have a stable foundation," emphasizes DI Bmst. Hubert Rhomberg, Managing Director of Rhomberg Holding. Both traditional construction and general contractor services in commercial system construction, as well as renovation, refurbishment, and project construction, continue to perform solidly. However, in other areas, especially in real estate and property development, a significant decline is noticeable. The lack of property development business, combined with high interest rates, is causing considerable pressure on earnings and liquidity.

Overall, the situation for the traditional company in the construction division remains challenging, says Rhomberg: “Our broad positioning allows us to cushion the slump in the construction industry better, but it is becoming increasingly difficult to navigate safely through turbulent waters.” He sees an opportunity in the consistent continuation of sustainable construction – especially through timber system construction, which is continuously being optimized. "With the prospect of municipal and government contracts, we also have expectations for our new business field of civil engineering."

As of the balance sheet date of March 31, 2023, the cumulative operating performance of the entire group amounted to 1.3 billion euros, representing an increase of 9.7 percent compared to the previous year. The construction division grew by around 4 percent to 542 million euros. In the rail technology division of the Rhomberg Sersa Rail Group, in which Rhomberg holds a 50% stake, the continued strong international expansion of rail infrastructure led to a 14 percent increase in turnover to 760 million euros. The number of employees increased from approximately 3,800 to just under 4,000.

Timber System Construction as a Gamechanger

With its construction solutions, Rhomberg Bau, as a full-service provider, combines the advantages of timber with modular prefabrication and scalability. The result is sustainable, turnkey properties – whether for offices, hotels, residential buildings, or educational institutions. "We take care not only of planning, production, and construction but also of operations, including renovation and dismantling," says Mag. Ernst Thurnher, Managing Director of Rhomberg Holding.

However, according to Thurnher, timber system construction can only fully develop its potential if Rhomberg Bau is involved in the design of the building from the start: "This allows us not only to offer an environmentally friendly solution but also the most economical and competitive option in timber system construction. For our customers, this is particularly important in light of the EU taxonomy regulation."

Furthermore, the company positions itself as a holistic competence center for builders: Based on a few key details about the construction project and requirements, the experts not only create an initial proposal for realization but also find the best solution. "Within two weeks, we can deliver a buildable timber system construction project – including cost estimation and ecological assessment," says Thurnher. "We can only achieve this because we bring together all competencies and products within the group." Among other things, the company has already built foresight into the fields of integrated planning and digital services. The still young Rhomberg Energy division, which has quickly established itself on the market with holistic energy concepts and is set to expand further, should not be overlooked.

Rhomberg Bau is also successful with system construction solutions beyond the timber sector. The 50% subsidiary Goldbeck Rhomberg, a specialist in economic, fast, and flexible solutions in industrial and commercial construction, surpassed last year’s figures with an operating performance of 381 million euros.

Renovation – Climate Protection and Impetus for the Construction Industry

The most sustainable approach is to preserve existing building structures, for which Rhomberg's renovation experts are committed. Ernst Thurnher views critically that the framework conditions for building renovations are still lacking in Austria: "In the current economic situation and the upcoming challenges in climate protection, these would make a lot of sense." Germany demonstrates that this works: "There, we are successfully active with our joint venture Renowate, the total solution provider for serial renovation."

Shaping the Future with Construction

Rhomberg’s wide reach in residential construction is evident in the variety of ongoing projects in Vorarlberg, Vienna, Germany, and Switzerland. In Rheindorf, Lustenau, the district development continues with Alpenländische Gemeinnützige WohnbauGmbH (AWG) and Raiba Lustenau Immobilien GmbH & Co OG. The interior work of the eight-story wooden residential building is nearing completion. In Zurich, Switzerland, on Anna-Heer-Strasse, Rhomberg is rethinking urban living and constructing 83 new timber-built apartments in a replacement building according to ecological and social criteria. In addition to the sponge city principle, which improves rainwater infiltration, the construction specialists are using the "Design Build" project management method to achieve greater efficiency in construction time, sustainability, and cost.

In Zurich’s Grimselstrasse, Rhomberg is transforming four semi-detached multi-family houses into a future-oriented residential complex with a total of 48 apartments through thoughtful core renovation. Another example of inner-city densification is being created at Keinergasse 29 in Vienna, surrounded by historical buildings. "In cooperation with Prath, a company belonging to the Rhomberg Bau Group, the Viennese Gründerzeit house is being revitalized, renovated, and expanded in a very tight space," explains Ernst Thurnher. "Historical substance combines with modern living space, and new smart balconies add value."

Participation Process Lindau-Zech: Blueprint for Project Development

In Lindau, Rhomberg Bau demonstrates its competence as a partner in challenging projects with the development of the Zechwald area. The former commercial site is to be transformed into a high-quality urban district and city center. The needs of the new district were identified in a broad participation process with citizens, representatives of the city, the economy, local associations, and institutions. Thurnher refers to this as a blueprint for a new kind of project development for both the city of Lindau and Rhomberg.

Circular Economy Instead of Landfills

At the Resources Center Rheintal (RCR), Rhomberg is making great strides toward the declared goal of a circular economy. A significant investment has been made in a state-of-the-art wet processing plant. "Our new recycling plant for excavated material marks the end of landfills," says Hubert Rhomberg confidently. With a processing capacity of 200 tons per hour, the "largest washing machine in Vorarlberg" makes significantly more excavated material reusable than was previously possible. Since even material with a high proportion of fine particles can now be cleaned, soils that previously had to be disposed of in landfills can now be processed. In this context, Rhomberg calls on politicians to make the recycling of excavated material mandatory in public tenders, "so that we can make valuable resources reusable on a large scale."

Rhomberg Sersa Rail Group Continues to Grow

Rail is expanding worldwide as an environmentally friendly mode of transport. "The continued high demand for rail mobility solutions is keeping our order books well-filled," reports Hubert Rhomberg, "both in our core market in the DACH region and in international markets." The positive order situation for the Rhomberg Sersa Rail Group (RSRG), 50% owned by Rhomberg and Swiss entrepreneur Konrad Schnyder, resulted in a pleasing 14% increase in revenue to 760 million euros in the past fiscal year. The company's market position was further strengthened by the implementation of a single-brand strategy.

Robots in the Koralmtunnel – Railway Crane in Ireland

In Austria, Rhomberg Sersa, in a joint venture with the PORR Group, was awarded the contract in June 2024 for equipping the 27-kilometer-long, two-tube Semmering Base Tunnel. Construction for the 176 million euro project is scheduled to begin in 2025. The railway technology experts are also still working on the Koralmtunnel, where an innovative robotic system was deployed. "For the handrail that runs through the entire tunnel, thousands of holes had to be drilled," says Rhomberg, "this task was handled by a drilling robot."

Due to an incident in the summer of 2023, the Gotthard Base Tunnel had to undergo repairs. The RSRG built the slab track on the seven-kilometer-long section while Rhomberg Bau performed the concreting work. In the Irish rail network, the RSRG put a new Kirow crane into operation. Rhomberg Sersa Australia, meanwhile, is working on the Cross-River Rail project, the new subway line in Brisbane.

Proven Alliance Partner

In Germany, the group remains involved in the large "Neues Werk Cottbus" (NWC) project. To save time and costs, Deutsche Bahn is using an innovative contract model for the first time: the "Rail Partner Model." In January 2024, the largest and most modern ICE maintenance facility was put into operation, and shortly afterward, the groundbreaking ceremony for the second hall took place. Rhomberg Sersa, in a joint venture with Swietelsky, is also realizing the superstructure and power supply for the Gäubahn route between Stuttgart Airport and Böblingen as part of a Deutsche Bahn alliance model.

#railtozero: Responsibility for People and the Environment

In addition to railway projects, a great deal of energy is being invested in implementing the sustainability vision "#railtozero." "As part of our climate strategy, we aim to achieve net-zero by 2050, among other things by using flexible, bimodal locomotives that can run both electrically and on diesel," explains Rhomberg. One flagship project is being pursued by Rhomberg Sersa in Ireland: The "On Track Machine" fleet, which is used on the Iarnród Éireann-Irish Rail network, will soon be powered by hydrogen-treated vegetable oil (HVO) instead of green diesel. Within the group, devices such as rail drilling machines are being gradually converted from gasoline engines to electric drives. Additionally, e-mobility is being promoted, and several locations already have photovoltaic systems producing clean energy.

"Digital Rail Services" for Even Better Solutions

In railway technology, Rhomberg Sersa is solidifying its reputation as a digital pioneer. "Our goal is to develop digital tools that make processes simpler, safer, and more cost-efficient – and ultimately improve our solutions," says Hubert Rhomberg. The result is a growing number of "Digital Rail Services." For example, stock surveying is being carried out using drone recordings. RSRG conducts precise construction and logistics simulations using digital twins. The "Q-tainer," a mobile data center, is available for data collection and processing on-site, and virtual site inspections are also possible. This extensive digitalization know-how is not only used internally but also marketed externally.