Tuesday, 29 September 2026
Erbud is concentrating resources on its established construction and renewable-energy businesses after deciding to close its loss-making modular division. Management expects activity to accelerate substantially during the second half of 2026 following a difficult first six months in which continuing operations remained profitable but the withdrawal from MOD21 generated significant accounting charges.
The Polish construction group generated approximately PLN 1.25 billion of revenue from continuing operations in the first half. The sharp deterioration in the headline result was concentrated in discontinued modular operations, leaving Erbud with a consolidated first-half net loss of approximately PLN 284 million. Most of the MOD21 impact was related to non-cash impairments and other exceptional adjustments associated with the decision to leave the business.
Erbud concluded in August that MOD21 was unlikely to reach sustainable profitability within an acceptable period. The group will initially seek a buyer for the modular operation or its assets before potentially selling the production property and machinery separately. Management estimates that approximately PLN 50 million could be recovered over the next two years, although the eventual proceeds will depend on the disposal process.
The exit has also affected Erbud’s financing arrangements because the write-downs influenced financial ratios contained in its banking agreements. The company has subsequently reached arrangements with lenders concerning the treatment of exceptional MOD21 costs. Management has argued that ending further investment in the modular operation will protect liquidity and allow capital to be redirected towards established parts of the group.
Erbud expects its building-construction operations to expand sharply during the remainder of the year, with second-half revenue potentially around twice the first-half level. The business is structured to handle approximately PLN 1.5–2 billion of annual construction output, while management is prioritising contract profitability and a manageable project pipeline rather than pursuing volume growth at any cost. Erbud entered the second half with approximately PLN 2.6 billion of external orders, although this was moderately below the comparable level a year earlier.
Renewable-energy subsidiary Onde is expected to provide another major contribution to the recovery. After generating around PLN 300 million of revenue during the first half, management expects approximately PLN 600 million in the second half, supported by projects already under construction and further additions to the pipeline. The combination of higher building activity and renewable-energy work is expected to strengthen the group’s operating performance after the MOD21 losses are removed.
Erbud’s strategy is therefore shifting towards consolidation rather than further diversification. Exiting modular construction removes a business that had consumed capital without reaching the required returns, while construction and renewable energy provide established order pipelines and operating capacity. The group still faces a competitive Polish construction market and its external backlog remains below last year’s comparable level, but the restructuring leaves Erbud entering 2027 with a more concentrated business model and reduced exposure to MOD21.
