Major Deals Closed by Končar in Germany and Austria
Croatian company Končar has made significant strides in expanding its international operations, securing long-term contracts in Germany and Austria [1]. While the exact value and delivery schedules of these contracts have yet to be disclosed, the deals are expected to have a positive impact on Končar’s financial performance.
The contracts, which involve "big contracts and long-term engagement," cover various sectors, though specific details have not been revealed [1]. One of these contracts is with E.ON SE, a German energy company, for the supply of transformers to Germany. The framework agreement is valid from June 2025 to December 2033, with the first deliveries expected in January 2028 [2].
The work under this contract will further cement Končar Distribution and Special Transformers (D&ST) as a key player in the modernization and construction of Europe’s electricity infrastructure. The implementation of individual deliveries under this contract is expected to occur over several years, with the initial deliveries scheduled for 2027 [2].
Another contract was secured from TIWAG, an Austrian energy supply company, for the supply of medium-power transformers. This contract is a continuation of Končar D&ST’s presence on the Austrian market and confirms their position as one of the leading manufacturers in the medium-power transformer segment [3].
The increased demand for transformers, coupled with Končar D&ST’s good market position and successful establishment on demanding foreign markets, has resulted in growth in revenue and profit. In the first quarter of 2025, consolidated EBITDA amounted to 46.7 million euros, showing a 74.7 percent increase compared to the same period last year [4]. Consolidated profit before tax was 45.9 million euros, representing a 77.2 percent increase compared to the same period in 2024 [4].
Furthermore, consolidated operating income in the first quarter of 2025 amounted to 129.8 million euros, a 33.4 percent increase from the same period last year [5]. The growth in revenue and profit was attributed to the two contracts secured with TIWAG and E.ON SE, which were not mentioned in the previous bullet points [6].
These new deals are expected to have an additional positive impact on Končar’s results, both inside and outside of Germany and Austria. The company's strategic expansion into major European markets is set to position Končar as a significant player in the energy sector.
Sources: [1] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652 [2] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652 [3] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652 [4] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652 [5] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652 [6] Malus, S. (2025, July 5). Končar D&ST dostaje velike ugovore u Njemačkoj i Austriji. Poslovni Dnevnik. Retrieved from https://www.poslovni.hr/poslovni-vijesti/koncar-dst-dostaje-velike-ugovore-u-njemačkoj-i-austriji-1217652
The contracts with E.ON SE, a German energy company, and TIWAG, an Austrian energy supply company, will contribute to Končar's expansion in the energy sector, potentially boosting the company's financial standing in the industry. The supply of transformers to these significant European markets is anticipated to further solidify Končar's position within the finance and energy sectors.
